Australia can heavily cut emissions by 2035: report

Australia can cut its emissions by 65–75% by 2035 and save households and businesses billions of dollars in the process, according to an EY analysis released ahead of the federal government’s next climate target decision.

The report outlines key priorities for Australian governments and businesses to set and achieve prudent climate goals by 2035.

Insights from the EY Net Zero Centre report include:

• The benefit-cost ratio of climate action has improved in the last decade. The costs of low emissions technologies have fallen rapidly, while lived experience and the latest science show the benefits of avoided climate impacts are larger and more immediate. As a result, the economic case for ambitious action is now stronger than ever.
• Shifts in technology costs mean Australian governments and businesses don’t need to choose between addressing climate change and managing cost-of-living pressures. It states the four most easy-to-reach keys can often begin to reduce costs for consumers and businesses today, while unlocking new value for industries and the broader economy and delivering the lion’s share of emissions reductions required by 2035.
• Looking longer term, Australia stands to make substantial economic gains as a renewable energy superpower and a leader in sustainable, regenerative industries. EY identifies four more keys that unlock enormous opportunity, each involving near-term action to prepare the ground for what comes after 2035, with sector-specific strategies that account for risks and capitalise on emerging opportunities.
   

The report states the eight keys suggested by EY to unlock lower costs, improve security and set Australia on the path to net zero emissions include:

1. Electrify (almost) everything to amplify the benefits of low-cost renewables.
2. Shift to electric and more efficient vehicles to reduce transport costs and reliance on imported energy.
3. Promote safe and attractive climate-resilient places to live, work and play.
4. Secure and scale up land sector removals required by all sectors.
5. Co-develop new globally competitive low-carbon industries and technologies.
6. Negotiate a low-carbon growth strategy for emissions-intensive agricultural products with major trade partners.
7. Maintain incentives for reducing heavy industry and transport emissions.
8. Provide a coherent long-term framework to ensure Australian fossil fuel exports support the global energy transition.

Read the full EY Net Zero Centre report here.

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