Latest news with #BarrySterland
SBS Australia
6 days ago
- Business
- SBS Australia
New report says tackling climate change linked to economic prosperity
Listen to Australian and world news, and follow trending topics with SBS News Podcasts . While economic cost is often considered a barrier to the transition to clean energy, a new report from the Productivity Commission suggests getting this transition right could boost Australia's economic growth. The report from the independent government advisory body, titled 'Investing in cheaper, cleaner energy and the net zero transformation,' outlines a set of steps its authors say would get Australia back on the path to productivity growth by tackling climate change. Productivity Commissioner Barry Sterland says the report makes an important connection between two of Australia's most pressing issues, lagging productivity, and addressing the impacts of a changing climate. "Our productivity performance has been really bad. It is critical for income growth and intergenerational equity that we improve our productivity. Performance and climate change also has to be dealt with. It's a long-term issue. The government's made international commitments and Australia needs to meet those. And so what we're trying to do in this report is bring those two things together." It's the second of five reports due ahead of a federal government summit later this month [[19-21 Aug]] aimed at lifting productivity rates and boosting economic growth. The report's recommendations include actions to reduce the cost of meeting emissions targets, speeding up approvals processes for new energy infrastructure, and addressing barriers to private investment in the transition to clean energy. Mr Sterland says the report acknowledges that the transition to green energy infrastructure can and must happen faster and more efficiently. "The current system has for a long time, there's been a wide recognition that it doesn't really protect the environment particularly well, but it also takes too long for all sorts of projects to navigate and particularly energy infrastructure. The timelines have really blown out and got very long, and that's starting to challenge our ability to develop the clean energy we need to replace the existing aging infrastructure." He says building Australia's preparedness for future climate impacts by improving processes now is key to the country's future economic prosperity. "Climate impacts are coming and they're going to affect us no matter what responses happen. Now there's a certain amount of climate response coming into the system, and so we have to start acting early so that we are more resilient and the cost of those natural disasters doesn't keep going up so that we have a more resilient society so that we can still manage to have all the things we really want while addressing those climate impacts." Climate Council CEO Amanda McKenzie says the report recognises Australians are already feeling the wide-reaching economic impacts of climate change. "We are seeing right now the impact in South Australia of this massive algal bloom which has been driven by a massive marine heat wave, and that's affecting fisheries. It's affecting tourism and of course the community. We found that annual farm profits across Australia are 23 per cent lower since 2 000 due to climate change and one of the big worries in the community as of course the uninsurability of houses." She says the Commission suggests a key priority in tackling these rising economic impacts needs to be making Australian houses more climate resilient. "It says that if we are better prepared, we can cope with disasters more effectively. So it has a series of recommendations that we also endorse creating a central public database for all climate hazards so people have better access to understanding what they're actually exposed to. They also couple that with a recommendation around a star rating system for housing resilience so that homeowners can work out well, what do I need to do to make my house safer." Mr Sterland says building this resilience is one way to improve Australia's economic position, by lowering disaster recovery costs. "We've got to start making our society and our economy and our housing stock in particular, which is what we focus on in this report, more resilient to that change so that the human impacts of those disasters aren't as great the disaster spend that all the governments are having to respond in picking up the pieces and assisting communities pick up the pieces after those disasters. And so that is a challenge." Dani Alexander is the CEO of the Energy Institute at the University of New South Wales. She says with Australia's current energy infrastructure aging and in need of replacement, the Commission's report acknowledges an important opportunity to make the transition to clean energy benefit the economy. But she says finding the most efficient and cost-effective way to achieve this transition also requires innovation and research- and currently, Australia's investment in research and development lags behind other OECD countries. "We've got some of the best minds in energy innovation right here in Australia. But we need to activate our fantastic research and also technology development capabilities to get more from our energy projects, which is what productivity is all about. Unfortunately, we haven't seen this opportunity highlighted in the interim report or indeed even the latest update from the strategic examination of R and D (research and development." She says the Productivity roundtable later this month gives the Australian government a chance to invest in finding new solutions to tackle climate change and boost productivity. "I would really hope that the people around that table are looking very closely at our innovation opportunity I really feel like this is something that is not high enough on the priority list and if we are able to unlock the research but also novel technology solutions that we have at our fingertips that sit with an institutions ready to be unlocked Will actually be able to address a lot of the productivity challenges that have been highlighted in this report."
The Advertiser
03-08-2025
- Business
- The Advertiser
Emissions reduction 'central' to boosting productivity
An answer to Australia's languishing productivity lies in its response to the threat of climate change, an independent government advisory body has found. Adapting to growing climate-related risks while also reducing emissions and transitioning to clean energy will enable higher productivity growth and living standards, according to an interim report by the Productivity Commission. The findings come as Treasurer Jim Chalmers prepares to convene a roundtable in search of a solution to the nation's lagging productivity. "Australia's net zero transformation is well under way," commissioner Barry Sterland said. "Getting the rest of the way at the lowest possible cost is central to our productivity challenge." By minimising the costs of reducing emissions through careful policy design, resources would be freed up for more productive activities, the interim report found. It recommended ensuring incentives to invest in technology that can achieve reductions. The Renewable Energy Target and the Capacity Investment Scheme, for example, will not support new investment in renewables after 2030, which means new market-based incentives should be implemented to eventually replace them. The report also recommends incentivising heavy vehicle operators to reduce emissions. Long-overdue reforms to Australia's main environment law would also better protect the natural world by introducing national standards and improving regional planning, while speeding up approvals for infrastructure to make energy cheaper. Though Australia has already set targets to cut greenhouse gas emissions 43 per cent by 2030 and achieve net zero emissions by 2050, the interim report found Australia will face significant climate-related risks regardless of emissions reductions. This means adapting to climate change is integral to growing productivity. The government has been urged to boost resilience to climate perils, which would lower the cost of disaster recovery and help maintain quality of life while Australia grapples with the impacts of climate change. Australians' homes in particular must become better adapted to climate risks, prompting the Productivity Commission to call for a housing resilience rating system and resources to help households, builders and insurers more easily identify upgrades. Dr Chalmers' roundtable will convene later in August and some invited to attend have already called for similar reforms. Former Treasury secretary Ken Henry in July urged the government to overhaul the nation's environment laws or risk Australia missing its most important economic goals. An answer to Australia's languishing productivity lies in its response to the threat of climate change, an independent government advisory body has found. Adapting to growing climate-related risks while also reducing emissions and transitioning to clean energy will enable higher productivity growth and living standards, according to an interim report by the Productivity Commission. The findings come as Treasurer Jim Chalmers prepares to convene a roundtable in search of a solution to the nation's lagging productivity. "Australia's net zero transformation is well under way," commissioner Barry Sterland said. "Getting the rest of the way at the lowest possible cost is central to our productivity challenge." By minimising the costs of reducing emissions through careful policy design, resources would be freed up for more productive activities, the interim report found. It recommended ensuring incentives to invest in technology that can achieve reductions. The Renewable Energy Target and the Capacity Investment Scheme, for example, will not support new investment in renewables after 2030, which means new market-based incentives should be implemented to eventually replace them. The report also recommends incentivising heavy vehicle operators to reduce emissions. Long-overdue reforms to Australia's main environment law would also better protect the natural world by introducing national standards and improving regional planning, while speeding up approvals for infrastructure to make energy cheaper. Though Australia has already set targets to cut greenhouse gas emissions 43 per cent by 2030 and achieve net zero emissions by 2050, the interim report found Australia will face significant climate-related risks regardless of emissions reductions. This means adapting to climate change is integral to growing productivity. The government has been urged to boost resilience to climate perils, which would lower the cost of disaster recovery and help maintain quality of life while Australia grapples with the impacts of climate change. Australians' homes in particular must become better adapted to climate risks, prompting the Productivity Commission to call for a housing resilience rating system and resources to help households, builders and insurers more easily identify upgrades. Dr Chalmers' roundtable will convene later in August and some invited to attend have already called for similar reforms. Former Treasury secretary Ken Henry in July urged the government to overhaul the nation's environment laws or risk Australia missing its most important economic goals. An answer to Australia's languishing productivity lies in its response to the threat of climate change, an independent government advisory body has found. Adapting to growing climate-related risks while also reducing emissions and transitioning to clean energy will enable higher productivity growth and living standards, according to an interim report by the Productivity Commission. The findings come as Treasurer Jim Chalmers prepares to convene a roundtable in search of a solution to the nation's lagging productivity. "Australia's net zero transformation is well under way," commissioner Barry Sterland said. "Getting the rest of the way at the lowest possible cost is central to our productivity challenge." By minimising the costs of reducing emissions through careful policy design, resources would be freed up for more productive activities, the interim report found. It recommended ensuring incentives to invest in technology that can achieve reductions. The Renewable Energy Target and the Capacity Investment Scheme, for example, will not support new investment in renewables after 2030, which means new market-based incentives should be implemented to eventually replace them. The report also recommends incentivising heavy vehicle operators to reduce emissions. Long-overdue reforms to Australia's main environment law would also better protect the natural world by introducing national standards and improving regional planning, while speeding up approvals for infrastructure to make energy cheaper. Though Australia has already set targets to cut greenhouse gas emissions 43 per cent by 2030 and achieve net zero emissions by 2050, the interim report found Australia will face significant climate-related risks regardless of emissions reductions. This means adapting to climate change is integral to growing productivity. The government has been urged to boost resilience to climate perils, which would lower the cost of disaster recovery and help maintain quality of life while Australia grapples with the impacts of climate change. Australians' homes in particular must become better adapted to climate risks, prompting the Productivity Commission to call for a housing resilience rating system and resources to help households, builders and insurers more easily identify upgrades. Dr Chalmers' roundtable will convene later in August and some invited to attend have already called for similar reforms. Former Treasury secretary Ken Henry in July urged the government to overhaul the nation's environment laws or risk Australia missing its most important economic goals. An answer to Australia's languishing productivity lies in its response to the threat of climate change, an independent government advisory body has found. Adapting to growing climate-related risks while also reducing emissions and transitioning to clean energy will enable higher productivity growth and living standards, according to an interim report by the Productivity Commission. The findings come as Treasurer Jim Chalmers prepares to convene a roundtable in search of a solution to the nation's lagging productivity. "Australia's net zero transformation is well under way," commissioner Barry Sterland said. "Getting the rest of the way at the lowest possible cost is central to our productivity challenge." By minimising the costs of reducing emissions through careful policy design, resources would be freed up for more productive activities, the interim report found. It recommended ensuring incentives to invest in technology that can achieve reductions. The Renewable Energy Target and the Capacity Investment Scheme, for example, will not support new investment in renewables after 2030, which means new market-based incentives should be implemented to eventually replace them. The report also recommends incentivising heavy vehicle operators to reduce emissions. Long-overdue reforms to Australia's main environment law would also better protect the natural world by introducing national standards and improving regional planning, while speeding up approvals for infrastructure to make energy cheaper. Though Australia has already set targets to cut greenhouse gas emissions 43 per cent by 2030 and achieve net zero emissions by 2050, the interim report found Australia will face significant climate-related risks regardless of emissions reductions. This means adapting to climate change is integral to growing productivity. The government has been urged to boost resilience to climate perils, which would lower the cost of disaster recovery and help maintain quality of life while Australia grapples with the impacts of climate change. Australians' homes in particular must become better adapted to climate risks, prompting the Productivity Commission to call for a housing resilience rating system and resources to help households, builders and insurers more easily identify upgrades. Dr Chalmers' roundtable will convene later in August and some invited to attend have already called for similar reforms. Former Treasury secretary Ken Henry in July urged the government to overhaul the nation's environment laws or risk Australia missing its most important economic goals.
Perth Now
03-08-2025
- Business
- Perth Now
Emissions reduction 'central' to boosting productivity
An answer to Australia's languishing productivity lies in its response to the threat of climate change, an independent government advisory body has found. Adapting to growing climate-related risks while also reducing emissions and transitioning to clean energy will enable higher productivity growth and living standards, according to an interim report by the Productivity Commission. The findings come as Treasurer Jim Chalmers prepares to convene a roundtable in search of a solution to the nation's lagging productivity. "Australia's net zero transformation is well under way," commissioner Barry Sterland said. "Getting the rest of the way at the lowest possible cost is central to our productivity challenge." By minimising the costs of reducing emissions through careful policy design, resources would be freed up for more productive activities, the interim report found. It recommended ensuring incentives to invest in technology that can achieve reductions. The Renewable Energy Target and the Capacity Investment Scheme, for example, will not support new investment in renewables after 2030, which means new market-based incentives should be implemented to eventually replace them. The report also recommends incentivising heavy vehicle operators to reduce emissions. Long-overdue reforms to Australia's main environment law would also better protect the natural world by introducing national standards and improving regional planning, while speeding up approvals for infrastructure to make energy cheaper. Though Australia has already set targets to cut greenhouse gas emissions 43 per cent by 2030 and achieve net zero emissions by 2050, the interim report found Australia will face significant climate-related risks regardless of emissions reductions. This means adapting to climate change is integral to growing productivity. The government has been urged to boost resilience to climate perils, which would lower the cost of disaster recovery and help maintain quality of life while Australia grapples with the impacts of climate change. Australians' homes in particular must become better adapted to climate risks, prompting the Productivity Commission to call for a housing resilience rating system and resources to help households, builders and insurers more easily identify upgrades. Dr Chalmers' roundtable will convene later in August and some invited to attend have already called for similar reforms. Former Treasury secretary Ken Henry in July urged the government to overhaul the nation's environment laws or risk Australia missing its most important economic goals.
The Guardian
03-08-2025
- Business
- The Guardian
Clean energy subsidies should be replaced with ‘market-based incentives' from 2030, Productivity Commission says
The Productivity Commission says clean energy subsidy programs should not be extended beyond 2030, and that 'market-based incentives' should guide investment in the clean energy transition over the coming decades. The commission's interim report on investing in cheaper, cleaner energy and the net zero transformation is one of five which will be released over two weeks and which set out a series of reforms to reinvigorate Australia's productivity. Commissioner Barry Sterland said 'Australia's net zero transformation is well under way'. 'Getting the rest of the way at the lowest possible cost is central to our productivity challenge,' he said. The commission stopped short of repeating previous recommendations for a broad price on carbon. But it advocated for a significant expansion of the safeguard mechanism, which sets emission limits for only the heaviest polluters, by slashing the threshold from 100,000 tonnes to 25,000 tonnes of carbon dioxide equivalent a year. Sign up: AU Breaking News email Chris Bowen, the climate change and energy minister, last week announced an increase in taxpayer subsidies available for green energy projects under its successful capacity investment scheme (CIS). The CIS and the government's other clean energy subsidy scheme, the renewable energy target, do not extend beyond 2030, and the commission argued that the two programs should be replaced with 'market-based incentives in the electricity sector'. The commission also said the implementation of the new vehicle efficiency standard meant federal and state governments should phase out specific concessions for electric vehicles, including on fringe benefits tax, stamp duties and registration fees. A new emissions-reduction incentive for heavy vehicles should also be introduced, the commission said. The commission said it takes too long to develop green energy infrastructure and there are deep concerns that the government will not reach its 2030 climate targets, which include 82% of energy production from renewable sources. Sign up to Breaking News Australia Get the most important news as it breaks after newsletter promotion The report called for an overhaul of how green energy projects are assessed under the Environment Protection and Biodiversity Conservation Act, to allow decision-makers to consider whether a project is important to Australia's clean energy transition. Martin Stokie, a commissioner who is leading the inquiry alongside Sterland, said Australia's 'sluggish and uncertain approval processes are not up to the task' of delivering the huge amount of clean energy infrastructure needed to meet national climate targets. 'Overdue reforms to the EPBC Act would both speed up approvals and better protect the environment,' he said. The environment minister, Murray Watt, is reviewing the act as part of a new package of federal nature laws, which were shelved before the election after lobbying from mining companies and the Western Australian government. The commission also made a series of recommendations to build the country's resilience to the effects of climate change. The interim report called on the commonwealth to lead development of a public database of all climate hazards, and a series of goals and policies to improve the resilience of houses. Notably, the commission backed a climate resilience star-rating system that would reflect the potential damage from climate change. 'People's experience of climate change will depend on the resilience of their home, but most lack the information they need to invest in upgrades,' Sterland said. 'As climate risks intensify, boosting our resilience can lower the costs of disaster recovery and create a healthier, safer and more productive Australia.' The commission will now consult on its draft recommendations before the final report due at the end of this year.
