The US jumps on board the electric vehicle revolution, leaving Australia in the dust



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Jake Whitehead, The University of Queensland; Dia Adhikari Smith, The University of Queensland, and Thara Philip, The University of Queensland

The Morrison government on Friday released a plan to reduce carbon emissions from Australia’s road transport sector. Controversially, it ruled out consumer incentives to encourage electric vehicle uptake. The disappointing document is not the electric vehicle jump-start the country sorely needs.

In contrast, the United States has recently gone all-in on electric vehicles. Like leaders in many developed economies, President Joe Biden will offer consumer incentives to encourage uptake of the technology. The nation’s entire government vehicle fleet will also transition to electric vehicles made in the US.

Electric vehicles are crucial to delivering the substantial emissions reductions required to reach net-zero by 2050 – a goal Prime Minister Scott Morrison now says he supports.

It begs the question: when will Australian governments wake up and support the electric vehicle revolution?

A do-nothing approach

In Australia in 2020, electric vehicles comprised just 0.6% of new vehicle sales – well below the global average of 4.2%.

Overseas, electric vehicle uptake has been boosted by consumer incentives such as tax exemptions, toll road discounts, rebates on charging stations and subsidies to reduce upfront purchase costs.

And past advice to government has stated financial incentives are the best way to get more electric vehicles on the road.

But government backbenchers, including Liberal MP Craig Kelly, have previously warned against any subsidies to make electric cars cost-competitive against traditional cars.




Read more:
Scott Morrison has embraced net-zero emissions – now it’s time to walk the talk


Releasing the government’s Future Fuels Strategy discussion paper on Friday, Energy and Emissions Reduction Minister Angus Taylor said subsidies for electric vehicles did not represent good value for money.

(As argued here, the claim is flawed because it ignores the international emissions produced by imported vehicle fuel).

The Morrison government instead plans to encourage business fleets to transition to electric vehicles, saying businesses accounted for around 40% of new light vehicle sales in 2020.

The government has also failed to implement fuel efficiency standards, despite in 2015 establishing a ministerial forum to do so.

The approach contrasts starkly with that taken by the Biden administration.

Craig Kelly struggling to open a bottle
Liberal MP Craig Kelly, pictured here struggling to open a bottle of water, opposes government subsidies to encourage electric vehicles.
Lukas Coch/AAP

Biden’s electrifying plan

Cars, buses and trucks are the
largest source of emissions in the US. To tackle this, Biden has proposed to:

And by committing to carbon-free electricity generation by 2035, the Biden administration is also ensuring renewable energy will power this electric fleet.

This combined support for electric vehicles and renewable energy is crucial if the US is to reach net zero emissions by 2050.




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Clean, green machines: the truth about electric vehicle emissions


Made in America

US companies are getting on board to avoid missing out on the electric vehicle revolution.

The day after Biden announced his fleet transition plan, General Motors (GM) – the largest US vehicle manufacturer and a major employer – announced it would stop selling fossil fuel vehicles by 2035 and be carbon-neutral by 2040.

This aligns with plans by the US states of California and Massachusetts to ban the sale of fossil fuel vehicles by 2035.

GM is serious about the transition, committing $US27 billion and planning at least 30 new electric vehicle models by 2025. And on Friday, the Ford Motor Company said it would double its investment in vehicle electrification to $US22 billion.

A General Motors ad for its electric vehicle strategy which aired during the US Superbowl.

Opportunities and challenges abound

Using government fleets to accelerate the electric vehicle transition is smart and strategic, because it:

  • allows consumers to see the technology in use

  • creates market certainty

  • encourages private fleets to transition

  • enables the development of a future second-hand electric vehicle market, once fleet vehicles are replaced.

Biden’s fleet plan includes a clear target, ensuring it stimulates the economy and supports his broader goal to create one million new US automotive jobs. Prioritising local manufacturing of vehicles, batteries and other components is key to maximising the benefits of his electric vehicle revolution.

On face value, the Morrison government’s business fleet plan has merit. But unlike the US approach, it does not involve a clear target and funding allocated to the initiative is relatively meagre.

So it’s unlikely to make much difference or put Australia on par with its international peers.

Man inspects an electric vehicle battery
Australia is well placed to capitalise on demand for electric vehicle components.
Shutterstock

Australian governments must wake up

Compounding the absence of consumer incentives to encourage uptake in Australia, some states are mulling taxing electric vehicles before the market has been established.

Our research shows this could not only delay electric vehicle uptake, but jeopardise Australia’s chances of reaching net-zero emissions by 2050.

Australia is already a world leader in building fast-charging hardware, and manufactures electric buses and trucks. We could also lead the global electric vehicle supply chain, due to our significant reserves of lithium, copper and nickel.

Despite these opportunities, the continuing lack of national leadership means the country is missing out on many economic benefits the electric vehicle revolution can bring.

Australia should adopt a Biden-inspired electric vehicle agenda. Without it, we will miss our climate targets, and the opportunity for thousands of new jobs.




Read more:
Wrong way, go back: a proposed new tax on electric vehicles is a bad idea


The Conversation


Jake Whitehead, Advance Queensland Industry Research Fellow & Tritum E-Mobility Fellow, The University of Queensland; Dia Adhikari Smith, E-Mobility Research Fellow, The University of Queensland, and Thara Philip, E-Mobility Doctoral Researcher, The University of Queensland

This article is republished from The Conversation under a Creative Commons license. Read the original article.

On an electric car road trip around NSW, we found range anxiety (and the need for more chargers) is real




Amelia Thorpe, UNSW; Declan Kuch, Western Sydney University, and Sophie Adams, UNSW

Replacing cars that run on fossil fuels with electric cars will be important in meeting climate goals – road transport produces more than 20% of global greenhouse gas emissions. But there are obstacles to wider uptake, particularly in Australia.

Too much of the debate about these vehicles revolves around abstract, technical calculations and assumptions about cost and benefit. Tariffs, taxes and incentives are important in shaping decisions, but the user experience is often overlooked. To better understand this we took a Tesla on a road trip from Sydney through some regional towns in New South Wales.




Read more:
The US jumps on board the electric vehicle revolution, leaving Australia in the dust


We soon found “range anxiety” is real. That’s the worry that the battery will run out of power before reaching the destination or a charging point. It’s often cited as the most important reason for reluctance to buy an electric vehicle.

Even as prices come down and hire and share options become more widespread, range anxiety about electric vehicles is hindering their wider uptake. We found it can largely be overcome through a range of strategies readily available now.

Lessons from our road trip

The first is simply to accumulate driving experience with a particular vehicle. Teslas promise a far simpler machine with fewer moving parts, but also incredibly sophisticated sensing and computational technology to help control your trip. This means you need to get a feel for the algorithms that calculate route and range.

These algorithms are black boxes – their calculations are invisible to users, only appearing as outputs like range calculations. On our trip, range forecasts were surprisingly inaccurate for crossing the Great Dividing Range, for example.




Read more:
How superfast charging batteries can help sell the transition to electric vehicles


Second, we found it very helpful to connect with other electric vehicle users and share experiences of driving. Just like any new technology, forming a community of users is a good way to gain an understanding of the vehicle’s uses and limits. Owner associations and lively online groups such as Electric Vehicles for Australia make finding fellow enthusiasts easy.

This connection can also help with the third strategy. It involves developing an understanding of how companies like Tesla control their vehicles and issue “over the air” software updates. If these specify different parameters for acceptable battery charge, that can change the vehicle’s range.

Public investment in charging network will help

Public investment in charging infrastructure could – and should – further ease range anxiety. Better planning and co-ordination are needed, too, to build on networks like the NRMA’s regional network of 50 kilowatt chargers.

electric car travelling at speed on highway
Long driving distances call for better planning and co-ordination of a nationwide charging network.
alexfan32/Shutterstock

Understanding what is involved for users is also crucial to the environmental benefits of electric vehicles. Their sustainability isn’t just a function of taxes and technologies. The practices of people driving electric cars matter too.

You learn with experience what efficient driving requires of you. You can also work out how your charging patterns could match solar generation at home, for those lucky enough to have rooftop PV panels.

These vehicles can deliver significant environmental benefits. They produce zero tailpipe emissions, reducing both local air pollution and global greenhouse gas emissions.

Regenerative braking also reduces brake particulate emissions. That’s because the electric motor operating in reverse can slow the car while recharging its battery.

Electric vehicles won’t cure all ills

Switching from internal combustion to electric cars won’t address all the problems of our current car-based system. Some, such as road congestion, could get worse.




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Road traffic will still cause deaths and injuries. Electric vehicles will still produce deadly PM2.5 particulates as long as they use conventional brakes and tyres. Many models do, providing similar driving experiences to combustion vehicles.

Congestion and the costs of providing and maintaining roads, parking and associated infrastructure will still create enormous social, economic and environmental burdens. Electric vehicles need to be part of a much wider transformation – especially in urban areas where other transport options are available.




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Rural and regional Australia can benefit too

Longer distances and lower densities make walking, cycling and public transport more challenging in rural and regional areas. Better support for electric vehicles, particularly chargers, could make a significant difference here.

These vehicles can help rural and regional areas in other ways too. Many holiday towns rely on tourist incomes but their electricity supply is at the mercy of long thin power lines that run through bushland. Electric vehicles could potentially help with this problem: when parked they can feed power back into the grid.

Tesla being charged at a rural charging point
Improving rural and regional charging networks can benefit those areas as well as the drivers of electric vehicles.
Shutterstock

Regional economic planning that supports visits by electric vehicle drivers can reduce the need to invest in energy generation or battery systems. There are huge opportunities to integrate electricity planning and the (re)building of bushfire-affected towns, which a trial in Mallacoota will explore.

Pooled together, the batteries of an all-electric national vehicle fleet could provide power equivalent to that of five Snowy 2.0s. This would boost energy security and flexibility.




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Owners of electric vehicles to be paid to plug into the grid to help avoid blackouts


In the US, President Joe Biden has announced electric vehicles will replace the entire federal fleet of 645,000 vehicles. An extra 500,000 public charging stations are to be built within a decade.

In Australia, the policy landscape is more [contested]. It’s time we caught up here.

We can start by recognising the importance of governments in the progress made internationally. Examples include the US$465 million US government loan to Tesla in 2009 to develop the landmark Model S, and Norway’s co-ordinated national approach to properly accounting for the environmental and social costs of cars. Norway’s success is now the focus of a laugh-out-loud Superbowl ad from GM, a company that in the past killed the electric car.

We need to understand users and have democratic debates about planning for charging infrastructure before we can sit back and enjoy the ride.The Conversation

Amelia Thorpe, Associate Professor in Law, UNSW; Declan Kuch, Vice Chancellor’s Research Fellow, Institute for Culture and Society, Western Sydney University, and Sophie Adams, Research Fellow, School of Humanities and Languages, UNSW

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Under the moonlight: a little light and shade helps larval fish to grow at night



Jeffrey Shima, Author provided

Jeffrey Shima, Te Herenga Waka — Victoria University of Wellington; Craig W. Osenberg, University of Georgia; Stephen Swearer, The University of Melbourne, and Suzanne Alonzo, University of California, Santa Cruz

At night on any one of hundreds of coral reefs across the tropical Pacific, larval fish just below the sea surface are gambling on their chances of survival.

Our latest research shows the brightness of the Moon could play a major role in that struggle for survival by affecting the availability of prey and keeping predators away.

Understanding how that works could help in fisheries management, specifically the prediction of changes to harvested fish stocks that allow us to anticipate how many adult fish can be taken without destabilising the fishery.

Many fish populations experience boom-and-bust cycles largely because parents routinely produce millions of offspring that have very low, but fluctuating, survival rates.

The large number of larval fish that are produced means any environmental conditions — for example, increased nutrients — that improve survival odds even only marginally can lead to a big influx in the number of surviving offspring.

Several sixbar wrasse swim above a reef.
Adult sixbar wrasse in courtship.
Author?, Author provided

When the Sun goes down

In the past we failed to take into account the influences the night may have on fish development.

In our research we found the daily growth rates of the larvae of sixbar wrasse (Thalassoma hardwicke) around the island of Mo’orea, in French Polynesia, are strongly linked to phases of the Moon.




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Their growth appears to be maximised when the first half of the night is dark and the second half of the night is bright.

Cloudy nights obscure the Moon, and thus allowed us to check our models by contrasting growth on cloudy versus clear nights, which confirmed the effect of moonlight on growth of these fish.

Phases of the Moon

We found that on the best nights of the lunar month for sixbars, around the last Quarter Moon when the Moon rises around midnight, larval fish grew about 0.012mm a day more than average.

But on the worst nights, around the first Quarter Moon when the Moon is overhead at sunset and sets around midnight, they grew about 0.014mm a day less than average.

From First Quarter to Full Moon then Last Quarter.
Phases of the Moon from the Southern Hemisphere.
Wikimedia, CC BY-SA

For a typical larval sixbar of 37.5 days old, that means its growth is 24% more on the best night than on the worst one. This is important, as growth is inextricably linked to survival and ultimately fisheries productivity.

We think the Moon affects larval growth in this way because of how it changes the movements of deeper-dwelling animals, those that migrate into shallow water each night to hunt for food under the cover of darkness.

Zooplankton — potential prey for larval sixbars — respond quickly to the arrival of darkness, and move into the surface water to supplement the diets of sixbars.

Micronekton, such as lanternfishes, which hunt larval fishes, may take much longer to reach surface waters and seek out their prey, due to their migration from much deeper depths.

Four graphs showing different phases of the Moon and the amount of predator/prey during each phase.
Four graphs showing the larval fish (in yellow) and the amount of predator (red shading area) and prey (brown shading area) rising to the surface during each phase of he Moon.
Proceedings of the Royal Society B, Author provided

As a consequence, prey availability for sixbars in surface waters may be hindered by early nocturnal brightness while the arrival of predators may be impeded by late nocturnal brightness.

Thus, larval fish grow best when their predators are absent but their prey are abundant — around the last Quarter Moon.

In contrast, around the first Quarter Moon, prey are suppressed but predators are not, leading to the slowest growth.

During the New Moon, when the surface waters remain dark throughout the night, influxes of both prey and predators may be high, with the latter preventing the larval fish from enjoying the increased numbers of prey.

On the other hand, during the Full Moon, when surface waters are well-lit, the movement of prey and predators may be suppressed, reducing the risk to the fish but also eliminating their food.

Impact on fishing

More research is needed to quantify these lunar effects on other marine populations. But our findings to date are good news for those working to strengthen fisheries management, given that phases of the Moon are predictable and cloud cover that can modify moonlight is being measured by satellites.

A diver underwater keeping watch on one of the sixbar wrasse fish.
Observing the sixbar wrasse spawning.
Author?, Author provided

This makes the incorporation of moonlight into existing fisheries management models relatively simple.

We think this will have implications around the world, not just in the tropics. This is because the nightly upward movements of deep-water animals is ubiquitous — it is the largest mass migration of biomass on the planet, and it happens everywhere.

The suppressive effect of moonlight on this movement of potential predators and prey is also a global phenomenon.

We evaluated effects of the Moon on growth of larval temperate fish in an earlier study and found a similar effect (moonlight enhanced growth).




Read more:
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The effect is stronger and more nuanced in our latest study, most likely because the waters in the tropics are comparatively clear.

Our findings also hint that other factors which affect night-time illumination of the sea may disrupt marine ecosystems. This includes the reflection of artificial lights from coastal cities, suspended sediments in the water column, and changes in cloud cover due to climate change.

In the future, we may be able to harness this extra information to help forecast fish population change to better guide the management and conservation of fisheries around the world.The Conversation

Jeffrey Shima, Professor of Ecology, Te Herenga Waka — Victoria University of Wellington; Craig W. Osenberg, Professor of Ecology, University of Georgia; Stephen Swearer, Professor of Marine biology, The University of Melbourne, and Suzanne Alonzo, Professor of Ecology & Evolutionary Biology, University of California, Santa Cruz

This article is republished from The Conversation under a Creative Commons license. Read the original article.

To fix Australia’s environment laws, wildlife experts call for these 4 changes — all are crucial



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Don Driscoll, Deakin University; April Reside, The University of Queensland; Brendan Wintle, The University of Melbourne; Euan Ritchie, Deakin University, and Martine Maron, The University of Queensland

The independent review of Australia’s main environment law, released last week, provided a sobering but accurate appraisal of a dire situation.

The review was led by Professor Graeme Samuel and involved consultation with scientists, legal experts, industry and conservation organisations. Samuel’s report concluded Australia’s biodiversity is in decline and the law (the EPBC Act) “is not fit for current or future environmental challenges”.

The findings are no surprise to us. As ecologists, we’ve seen first hand how Australia’s nature laws and governance failure have permitted environmental degradation and destruction to the point that species face extinction. Even then, continued damage is routinely permitted.

And the findings aren’t news to many other Australians, who have watched wildlife and iconic places such as Kakadu and Kosciuszko national parks, and the Great Barrier Reef, decline at rates that have only accelerated since the act was introduced in 1999. Even globally recognisable wildlife, such as the platypus, now face a future that’s far from certain.

To reverse Australia’s appalling track record of protecting biodiversity, four major reforms recommended by Samuel must be implemented as a package.

1. Setting standards

One of the many failings of Australia’s environmental laws is there has never been a point beyond which no further impacts are acceptable.

The government almost never says “enough!”, whether it’s undermining wetlands for a new mine, or clearing woodlands for agriculture. Species continue to suffer death by a thousand cuts.




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Death by 775 cuts: how conservation law is failing the black-throated finch


For example, the original distribution of the endangered southern black-throated finch of southern and central Queensland has shrunk to less than 10% due to land clearing and habitat degradation. Yet, further clearing was approved for coal mines, housing developments and sugar cane farms.

Biodiversity offsets, which aim to compensate for environmental damage by improving nature elsewhere, have for the most part been dreadfully ineffective. Instead they have been a tool to facilitate biodiversity loss.

Two black-throated finches on a branch, one flying, against a blue sky.
Land clearing and cattle grazing are among the threats black-throated finches face.
Stephanie Todd, Author provided

The centre piece of Samuel’s report are proposed new National Environmental Standards. These would provide clear grounds for drawing a line in the sand on environmental damage.

Legal, rigorous enforcement of these standards could turn around Australia’s centuries-long record of destroying its natural heritage, and curb Australia’s appalling extinction rate — while also providing clarity and certainty for business.

Vital features of the standards Samuel recommends include:

  • avoiding impacts on the critical habitat of threatened species

  • avoiding impacts that could reduce the abundance of threatened species with already small and declining populations

  • no net reduction in the population size of critically endangered and endangered species

  • cumulative impacts must be explicitly considered for threatened species and communities

  • offsets can only be used as a last resort, not as a routine part of business like they are at the moment.

Under the proposed National Environmental Standards, any new developments would need to be in places where environmental damage is avoided from the outset, with offsets only available if they’re ecologically feasible and effective.

2. Greater government accountability

The federal environment minister can make decisions with little requirement to publicly justify them.

In 2014, then environment minister Greg Hunt controversially approved an exemption to the EPBC Act for Western Australia’s shark cull. This was despite evidence the cull wouldn’t make people safer, would harm threatened species and would degrade marine ecosystems. Hunt could shirk the evidence, deny the impacts and make a politically expedient decision, with no mechanisms in place to call him to account.

Tiger shark swimming near the sea bed
Tiger sharks and white sharks were targeted in the WA cull.
Shutterstock

Samuel’s report states the minister can make decisions that aren’t consistent with the National Environmental Standards — but only as a “rare exception”. He says these exceptions must be “demonstrably justified in the public interest”, and this justification must be published.




Read more:
Why we’re opposing Western Australia’s shark cull: scientists


We think this epitomises democracy. Ministers can make decisions, but they must be open to public and robust scrutiny and explain how their decisions might affect environments and species.

Improved accountability will be one of the many benefits of Samuel’s proposed independent Environment Assurance Commissioner, which would be backed up by an Office of Compliance and Enforcement. Samuel says these must be free from political interference.

These are absolutely critical aspects of the reforms. Standards that aren’t audited or enforced are as worthless as an unfunded recovery plan.

3. Decent funding

Samuel urges improved resourcing because to date, funding to protect species and the environment has been grossly inadequate. For example, experts recently concluded up to 11 reptile species are at risk of extinction in the next 50 years in Australia, and limited funding is a key barrier to taking action.

A small lizard sitting on a human hand
Victoria’s grassland earless dragon (Tympanocryptis pinguicolla) is one of 11 reptile species identified as at risk of extinction.
Michael Mulvaney/Wikimedia, CC BY-SA

And it has been proven time and again that lack of action due to under-resourcing leads to extinction. The recent extinction of the Christmas Island forest skink, the Christmas Island pipistrelle, and the Bramble Cay melomys were all attributable, in large part, to limited funding, both in the administration of the threatened species listing process, and in delivering urgent on-ground action.




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Vale ‘Gump’, the last known Christmas Island Forest Skink


We need only look to the COVID pandemic to know when faced with emergencies, the government can rapidly deploy substantial sums of money for urgent interventions. And we are well and truly in an environmental emergency.

Spending to care for the environment is not a cost that delivers no return. It’s an investment that delivers substantial benefits, from creating jobs to cleaner water and healthier people.

4. Increase ecological knowledge

Engaging experts is key to achieving Samuel’s long-overdue proposed reforms. He calls for the immediate creation of expert committees on sustainable development, Indigenous participation, conservation science, heritage, and water resources. This will help support the best available data collection to underpin important decisions.

Ultimately, though, much more investment in building ecological knowledge is required.

Australia has more than 1,900 listed threatened species and ecological communities, and most don’t even have active recovery plans. Ecologists will need to collect, analyse and interpret new, up-to-date data to make biodiversity conservation laws operational for most threatened species.

For example, while we know logging and fires threaten greater gliders, there’s still no recovery plan for this iconic forest possum. And recent research suggests there are actually three — not simply one — species of greater glider. Suspected interactions between climate change, fire and logging, and unexplained severe population declines, means significant new effort must be invested to set out a clear plan for their recovery.




Read more:
Environment laws have failed to tackle the extinction emergency. Here’s the proof


Samuel recommends Regional Recovery Plans be adequately funded to help develop some knowledge. But we suggest substantial new environmental capacity is needed, including new ecological research positions, increased environmental monitoring infrastructure, and appropriate funding of recovery plans, to ensure enough knowledge supports decision making.

Cherry picking recommendations condemns our species

Samuel’s report has provided a path forward that could make a substantial difference to Australia’s shocking track record of biodiversity conservation and land stewardship.

But Environment Minister Sussan Ley’s response so far suggests the Morrison government plans to cherry pick from Samuel’s recommendations, and rush through changes without appropriate safeguards.

If the changes we outlined above aren’t implemented as a package, our precious natural heritage will continue to decline.




Read more:
A major report excoriated Australia’s environment laws. Sussan Ley’s response is confused and risky


The Conversation


Don Driscoll, Professor in Terrestrial Ecology, Deakin University; April Reside, Researcher, Centre for Biodiversity and Conservation Science, The University of Queensland; Brendan Wintle, Professor in Conservation Ecology, School of BioSciences, The University of Melbourne; Euan Ritchie, Professor in Wildlife Ecology and Conservation, Centre for Integrative Ecology, School of Life & Environmental Sciences, Deakin University, and Martine Maron, ARC Future Fellow and Professor of Environmental Management, The University of Queensland

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Taking care of business: the private sector is waking up to nature’s value



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Megan C Evans, UNSW

For many businesses, climate change is an existential threat. Extreme weather can disrupt operations and supply chains, spelling disaster for both small vendors and global corporations. It also leaves investment firms dangerously exposed.

Businesses increasingly recognise climate change as a significant financial risk. Awareness of nature-related financial risks, such as biodiversity loss, is still emerging.

My work examines the growth of private sector investment in biodiversity and natural capital. I believe now is a good time to consider questions such as: what are businesses doing, and not doing, about climate change and environmental destruction? And what role should government play?

Research clearly shows humanity is severely damaging Earth’s ability to support life. But there is hope, including a change in government in the United States, which has brought new momentum to tackling the world’s environmental problems.

Koala lies dead after a bushfire tears through forest
Now’s a good time to talk about how humans are wrecking the planet.
Daniel Mariuz/AAP

Poisoning the well

An expert report released last week warned Australia must cut emissions by 50% or more in the next decade if it’s to meet the Paris Agreement goals. Meeting this challenge will require everyone to do their bit.

Climate change is a major threat to Australia’s financial security, and businesses must be among those leading on emissions reduction. Unfortunately, that’s often not the case.

The finance sector, for example, contributes substantially to climate change and biodiversity loss. It does this by providing loans, insurance or investment for business activities that produce greenhouse gas emissions or otherwise harm nature.

In fact, a report last year found Australia’s big four banks loaned A$7 billion to 33 fossil fuel projects in the three years to 2019.

Protest banner on coal pile at terminal
Australia’s big banks have been criticised for investing in fossil fuels.
Dean Sewell/Greenpeace

A pushback for nature

Promisingly, there’s a growing push from some businesses, including in the finance sector, to protect the climate and nature.

Late last year, Australian banks and insurers published the nation’s first comprehensive climate change reporting framework. And the recently launched Climate League 2030 initiative, representing 17 of Australia’s institutional investors with A$890 billion in combined assets, aims to act on deeper emissions reductions.




Read more:
Worried about Earth’s future? Well, the outlook is worse than even scientists can grasp


Some companies are starting to put serious money on the table.
In August last year, global financial services giant HSBC and climate change advisory firm Pollination announced a joint asset management venture focused on “natural capital”. The venture aims to raise up to A$1 billion for its first fund.

Globally too, investors are starting to wake up to the cost of nature loss. Last month, investors representing US$2.4 trillion (A$3.14 trillion) in assets asked HSBC to set emissions reduction targets in line with the Paris Agreement. And in September last year, investor groups worth over $US103 trillion (A$135 trillion) issued a global call for companies to accurately disclose climate risks in financial reporting.

HSBC sign lit at night
HSBC’s investors are pushing for stronger climate action.
Shutterstock

Climate change is not the only threat to global financial security. Nature loss – the destruction of plants, animals and ecosystems – poses another existential threat. Last year, the World Economic Forum reported more than half of the global economy relies on goods and services nature provides such as pollination, water and disease control.

Efforts by the finance sector to address the risks associated with biodiversity loss are in their infancy, but will benefit from work already done on understanding climate risk

Of course, acknowledging and disclosing climate- and nature-related financial risks is just one step. Substantial action is also needed.

Businesses can merely “greenwash” their image – presenting to the public as environmentally responsible while acting otherwise. For example, a report showed in 2019, many major global banks that pledged action on climate change and biodiversity loss were also investing in activities harmful to biodiversity.

Logs felled in timber operation
The global economy depends on the goods and services nature provides.
Shutterstock

Getting it right

In the financial sector and beyond, there are risks to consider as the private sector takes a larger role in environmental action.

Investors will increasingly seek to direct capital to projects that help to reduce their exposure to climate- and nature-related risks, such ecosystem restoration and sustainable agriculture.

Many of these projects can help to restore biodiversity, sequester carbon and deliver benefits for local communities. But it’s crucial to remember that private sector investment is motivated, at least in part, by the expectation of a positive financial return.

Projects that are highly risky or slow to mature, such as restoring highly threatened species or ecosystems, might struggle to attract finance. For example, the federal government’s Threatened Species prospectus reportedly attracted little private sector interest.

That means governments and philanthropic donors still have a crucial role in the funding of research and pilot projects.




Read more:
A major report excoriated Australia’s environment laws. Sussan Ley’s response is confused and risky


Governments must also better align policies to improve business and investor confidence. It is nonsensical that various Australian governments send competing signals about whether, say, forests should be cleared or restored. And at the federal level, biodiversity loss and climate change come under separate portfolios, despite the issues being inextricably linked.

Private-sector investment could deliver huge benefits for the environment, but these outcomes must be real and clearly demonstrated. Investors want the benefits measured and reported, but good data is often lacking.

Too-simple metrics, such as the area of land protected, don’t tell the whole story. They may not reflect harm to local and Indigenous communities, or whether the land is well managed.

Finally, as the private sector becomes more aware of nature and climate-related risks, a range of approaches to addressing this will proliferate. But efforts must be harmonised to minimise confusion and complexity in the marketplace. Governments must provide leadership to make this a smooth process.

Swift parrot flies through treetops
Threatened species habitat restoration may struggle to attract private sector funding.
Eric Woehler

The power to change

Last week, a major report was released highlighting grave failures in Australia’s environmental laws. The government’s response suggested it is not taking the threat seriously.

Businesses and governments hold disproportionate power that can be used to either delay or accelerate transformative change.

And although many businesses wield undue influence on government decisions, it doesn’t have to be this way.

By working together and seizing the many opportunities that present, business and government can help arrest climate change and nature loss, and contribute to a safer, more liveable planet for all.




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You can’t talk about disaster risk reduction without talking about inequality


The Conversation


Megan C Evans, Lecturer and ARC DECRA Fellow, UNSW

This article is republished from The Conversation under a Creative Commons license. Read the original article.