The federal government is set to announce its 2035 emissions reduction target, with the Climate Change Authority recommending a 65-75 per cent reduction on 2005 levels.
Figures released by Deloitte Access Economics show a 75 per cent target would boost jobs, exports and GDP.
Compared to Australia’s current trajectory, a 75 per cent target unlocks an additional $370 billion in GDP and supports an additional 69,000 jobs by 2035.
Deloitte Access Economics lead partner Pradeep Philip said Australia is in a race to secure the global capital required to establish green industries.
“Setting a lower target today comes at the cost of lower business investment than would otherwise be the case,” he said.
“Achieving a strong target creates the foundation for Australia’s economy to grow and compete in a decarbonised world, driving investment, innovation and industries for growth. Getting these foundations right with a 75% target can drive, in today’s dollars, $190 billion more exports by mid-century.”
Over 350 businesses including Future Group, Fortescue, Atlassian, Canva, IKEA, Unilever, Volvo Group Australia, Culture Amp, Bank Australia, Intrepid Travel and Ben & Jerry’s have signed an open letter calling for the government to commit to at least a 75 per cent target.
Future Group CEO Simon Sheikh said Australia holds a winning hand: abundant land, affordable renewable energy, critical minerals, and a skilled workforce.
“With these strengths, we can build a future made in Australia—powered by clean energy, advanced manufacturing, and secure, well-paid jobs in our regions. But ambition must come first,” Sheikh said.
“A strong 2035 target will send a clear signal to investors, industry and our global partners that Australia is serious about net zero—and ready to play ball in the industries of tomorrow.”