Financial Standard: Federal Budget Delivers Nothing On Climate

Oliver Wyman Head of Climate and Sustainability platform in Australia, and Partner in Financial Services Ross Eaton noted that the $1.3 billion of new investment to "maintain energy security, keep downward pressure on energy prices while reducing emissions", consisting of investments in hydrogen, carbon capture and storage, community microgrids driven by renewables, and low emissions steel, is modest compared to the $5.6 billion on fuel excise duty relief.

"The investments in hydrogen are welcome, given the extensive domestic and international opportunity available to Australia," Eaton said.

"However, much of the $1.3 billion supports gas, or blue and grey hydrogen which further support fossil fuel extraction and complicates Australia's ultimate path toward net zero. These investments are certainly pushing Australia toward a greener economy, however, are not nearly sufficient to drive and foster the extent of change required."

Eaton noted that the World Economic Forum estimates US$4-5 trillion are required annually to keep climate change at 1.5 degrees. If Australia invested its fair share based on GDP, this would translate to around AU$80-110 billion annually.

Read the full article on: Financial Standard