Invest
Tackling climate change costs 1 per cent of GDP, yet Australia still refuses to act
Invest
Tackling climate change costs 1 per cent of GDP, yet Australia still refuses to act
It will cost just 1 per cent of the world’s GDP to transition to a cleaner society and reduce climate change impacts, yet the Morrison government refuses to act and is now facing a class action.
Tackling climate change costs 1 per cent of GDP, yet Australia still refuses to act
It will cost just 1 per cent of the world’s GDP to transition to a cleaner society and reduce climate change impacts, yet the Morrison government refuses to act and is now facing a class action.
A report released by the World Economic Forum showed that, collectively, the world needs to invest US$8.1 trillion over the next three decades to successfully tackle climate change, biodiversity and land degradation crises.
This amounts to US$536 billion per year.
In order to achieve this, the World Economic Forum has found that structural transformations are needed to close the $4.1 trillion finance gap between now and 2050, by building back more sustainably, by repurposing harmful agricultural and fossil fuel subsidies, and by creating economic and regulatory incentives.
Despite the need to act, nature and green causes account for just 2.5 per cent of the projected economic stimulus packages that world leaders are currently using to lift their economies post-COVID-19.
Private capital will also have to be scaled up dramatically to close the investment gap.
“The State of Finance for Nature report underlines the urgency and the criticality of increasing investment in nature,” said Justin Adams, head of the Tropical Forest Alliance at the World Economic Forum.
“It highlights how little is invested today – $133 billion represents only 0.1 per cent of global GDP, and a tripling of this feels like a no-brainer given the enhanced resilience this would provide to the global and local economies.”
The World Economic Forum also noted the huge business opportunity for those who adapt to a new world.
“Studies show this is also good for business – some $10 trillion in business opportunities and 395 million new jobs could be created by investing in nature-positive solutions.”
At the same time as the World Economic Forum releases its research, eight high school students have taken the environment minister to the Federal Court for failing in its duty of care to younger Australians.
The students alleged that approving a major extension to the Vickery coal mine in northern NSW would breach the minister’s duty.
An injunction was not ordered, but there will be further submissions on what the duty means for the minister’s decision and the mine.
“I am thrilled by today’s judgement,” said Ava Princi, 17, one of the students. “I’m thrilled because this is a global first. We understand it is the first time a court of law, anywhere in the world, has ordered a government to specifically protect young people from the catastrophic harms of climate change.
“My future – and the future of all young people – depends on Australia joining the world in taking decisive climate action.”
The judgment means the environment minister should not make decisions that harm young people. However, the judge stopped short of preventing the minister from approving the Vickery Extension Project.
The judge called upon the parties to confer on orders over the future of the proposed project.
“This is a victory for young people everywhere. The case was about young people stepping up and demanding more from the adults whose actions are determining our future wellbeing,” says Laura Kirwan, 17, another student behind the class action.
“Our voices are powerful and I hope this case inspires more young people to push for stronger, faster and deeper cuts to carbon emissions.
“Our futures depend on it.”
RELATED ARTICLES
About the author
About the author
Economy
Economist calls for July RBA rate cut following inflation data
An economist from State Street Global Advisors has called for the Reserve Bank of Australia to cut interest rates in July following today's Consumer Price Index data for June. Read more
Economy
GDP data prompts economist to predict faster RBA rate cuts
Australia's latest GDP growth data has come in significantly below expectations, prompting an economist to suggest the Reserve Bank may need to ease monetary policy more aggressively. Read more
Economy
Global markets face turbulent start amid tariff concerns, but outlook remains cautious
Global equity and bond markets have experienced a turbulent start to 2025, primarily due to concerns that a potential tariff-driven trade war could heighten inflation and recession risks. Read more
Economy
RBA may cut rates faster if GDP data disappoints, economists say
The Reserve Bank of Australia may cut interest rates more quickly if next week's GDP data disappoints, economists said following today's consumer price index data for May. Read more
Economy
RBA delivers widely expected rate cut as inflation optimism balances global uncertainty
The Reserve Bank of Australia has cut the cash rate by 25 basis points, delivering on widespread market expectations while signalling a clearer directional shift towards less restrictive monetary ...Read more
Economy
Economist warns strong jobs data may delay further RBA rate cuts
Strong employment growth in April has put expectations for multiple interest rate cuts at risk, though upcoming economic data may clarify the need for lower rates, according to State Street Global ...Read more
Economy
Australian inflation continues downward trend, nearing RBA target
The Australian Bureau of Statistics (ABS) has reported that the Consumer Price Index (CPI) rose 2.7 per cent in the year to August, down from 3.5 per cent in July and 3.8 per cent in June. Read more
Economy
UK markets poised for gains after election, global geopolitical risks remain
Chris Iggo, Chief Investment Officer at AXA Investment Managers, has provided an optimistic outlook for UK markets following the recent general election, while cautioning about ongoing global ...Read more
Economy
Economist calls for July RBA rate cut following inflation data
An economist from State Street Global Advisors has called for the Reserve Bank of Australia to cut interest rates in July following today's Consumer Price Index data for June. Read more
Economy
GDP data prompts economist to predict faster RBA rate cuts
Australia's latest GDP growth data has come in significantly below expectations, prompting an economist to suggest the Reserve Bank may need to ease monetary policy more aggressively. Read more
Economy
Global markets face turbulent start amid tariff concerns, but outlook remains cautious
Global equity and bond markets have experienced a turbulent start to 2025, primarily due to concerns that a potential tariff-driven trade war could heighten inflation and recession risks. Read more
Economy
RBA may cut rates faster if GDP data disappoints, economists say
The Reserve Bank of Australia may cut interest rates more quickly if next week's GDP data disappoints, economists said following today's consumer price index data for May. Read more
Economy
RBA delivers widely expected rate cut as inflation optimism balances global uncertainty
The Reserve Bank of Australia has cut the cash rate by 25 basis points, delivering on widespread market expectations while signalling a clearer directional shift towards less restrictive monetary ...Read more
Economy
Economist warns strong jobs data may delay further RBA rate cuts
Strong employment growth in April has put expectations for multiple interest rate cuts at risk, though upcoming economic data may clarify the need for lower rates, according to State Street Global ...Read more
Economy
Australian inflation continues downward trend, nearing RBA target
The Australian Bureau of Statistics (ABS) has reported that the Consumer Price Index (CPI) rose 2.7 per cent in the year to August, down from 3.5 per cent in July and 3.8 per cent in June. Read more
Economy
UK markets poised for gains after election, global geopolitical risks remain
Chris Iggo, Chief Investment Officer at AXA Investment Managers, has provided an optimistic outlook for UK markets following the recent general election, while cautioning about ongoing global ...Read more
