Australia is at risk of taking the wrong tack at the Glasgow climate talks, and slamming China is only part of it


JoeLogan/Shutterstock

Peter Martin, Crawford School of Public Policy, Australian National UniversityBuried within the prime minister’s response to the latest report from the Intergovernmental Panel on Climate Change is just about everything we’re at risk of getting wrong at the Glasgow climate talks in October.

After slamming China — whose emissions per person are half of Australia’s — for not doing more to cut emissions, Scott Morrison said the Glasgow talks were the “biggest multilateral global negotiation the world has ever known”.

If he treats the talks as just another (big) negotiation, we’re in trouble.

The way the Department of Foreign Affairs and Trade usually treats negotiations is hold something back, hold out the prospect of “giving it up,” and then only make the concession if the other side gives something in return. Even if holding back damages Australia.

Cars are a case in point. From an economic point of view, there is no reason whatsoever to continue to impose tariffs (special taxes) on the import of cars — none, not even in the eyes of those who support the use of tariffs to protect Australian jobs. Australia no longer makes cars.

Yet the tariff remains, at 5%, making it perhaps A$1 billion harder than it should be for Australians to buy new cars (although nowhere near as hard as it was in the days when the tariff was 57.5%).

The tariff seems to be in place largely to give the Department of Foreign Affairs and Trade something to negotiate away in trade agreements: for use as what the Productivity Commission calls “negotiating coin”.

Australia removed tariffs on cars from Korea but kept them in place more broadly.
Tricky_Shark/Shutterstock

Here’s how it worked in the 2014 Australia-Korea Free Trade Agreement. Australia agreed to remove the remaining 5% tariff on Korean cars, “with consumers and businesses to benefit from downward pressure on import prices”.

But Australia didn’t remove the tariff on car imports altogether, which would have given us a much bigger benefit but denied the department negotiating coin.

The next year the department did it again, agreeing to give up the tariff on imported Japanese cars in the Japan-Australia Economic Partnership Agreement (but not on other cars) so Australians could “benefit from lower prices and/or greater availability of Japanese products”.

Two years later, it did it again, with cars from China.

When the UK and European agreements are negotiated, it’ll do it there too.

Australia holds back reforms

Eventually Australians will get what they are entitled to. But the point is that rather than advancing the cause of free trade, the department has held back, treating a win for the other side as a loss for us, when it wasn’t.

The Centre for International Economics believes the much bigger earlier set of tariff cuts lifted the living standard of the average Australian family by A$8,448.

Had our trade negotiators been in charge, we would still be waiting. Instead the Hawke and then the Keating governments pushed through unilateral reductions, asking for nothing in return.




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As former Trade Minister Craig Emerson put it, this gave Australia “credibility in international trade negotiations way beyond the relative size of our economy”.

Does that sound like the sort of thing Australia might need at Glasgow, to have enough credibility to urge even bigger emitters to deliver the kind of cuts on which our futures and future temperatures depend?

It won’t work with China

The prime minister is right to say that China is the world’s biggest greenhouse gas emitter, even though its emissions per person are low. Its high population means it accounts for 28% of all the greenhouse gases pumped out each year. The next biggest emitter, the United States, accounts for 15%

But China’s status is new. Until 2006 it pumped out less per year than the United States. Because the US has had mega-factories and heating and so on for so much longer, it is responsible for by far the biggest chunk of the greenhouse gasses already in the atmosphere: 25%, followed by the European Union with 22%.



China might reasonably feel that countries like the US that have done the most to create the problem should do the most to fix it.

Like Australia, the US pumps out twice as much per person as China and has much more room to cut back.

On the bright side, China knows that being big means it is in a position to make a difference to global emissions in a way that other countries cannot on their own. And that’s a position that can benefit its citizens.

China’s latest five-year plan, adopted in March, commits it to cut its “carbon intensity” (emissions per unit of GDP) by 18%. If it beats that five-year target by just a bit (and it has beaten its previous five-year targets) its emissions will turn down from 2025.

It is aiming for net-zero emissions by 2060.

Australia needs China’s help

The Intergovernmental Panel on Climate Change finds that Australia is especially susceptible to global warming. We’re facing less rain in winter, longer heatwaves, drier rivers, more arid soil and worse droughts.

We are right to want China to do more, but the worst way to achieve it is to say “we won’t lift our ambition until you lift yours”.

Hardly ever a worthwhile strategy, it is particularly ineffective when we don’t have bargaining power.




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The only power we’ve got is to set an example, unilaterally, as we did with tariffs. And to ramp up our ambition.

If Australia said it would do more, and didn’t quibble, it might just count for something.

It’s all we can do, and it’s the very best we can do.The Conversation

Peter Martin, Visiting Fellow, Crawford School of Public Policy, Australian National University

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

Tasmania’s reached net-zero emissions and 100% renewables – but climate action doesn’t stop there


Shutterstock

Rupert Posner, ClimateWorks Australia and Simon Graham, ClimateWorks AustraliaGetting to net-zero greenhouse gas emissions and 100% renewable energy might seem the end game for climate action. But what if, like Tasmania, you’ve already ticked both those goals off your list?

Net-zero means emissions are still being generated, but they’re offset by the same amount elsewhere. Tasmania reached net-zero in 2015, because its vast forests and other natural landscapes absorb and store more carbon each year than the state emits.

And in November last year, Tasmania became fully powered by renewable electricity, thanks to the island state’s wind and hydro-electricity projects.

The big question for Tasmania now is: what comes next? Rather than considering the job done, it should seize opportunities including more renewable energy, net-zero industrial exports and forest preservation – and show the world what the other side of net-zero should look like.

electricity transmission lines
Hydro-electric power and wind energy mean Tasmania runs on 100% renewable energy.
Shutterstock

A good start

The Tasmanian experience shows emissions reduction is more straightforward in some places than others.

The state’s high rainfall and mountainous topography mean it has abundant hydro-electric resources. And the state’s windy north is well suited to wind energy projects.

What’s more, almost half the state’s 6.81 million hectares comprises forest, which acts as a giant carbon “sink” that sucks up dioxide (CO₂) from the atmosphere.

Given Tasmania’s natural assets, it makes sense for the state to go further on climate action, even if its goals have been met.




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The Tasmanian government has gone some way to recognising this, by legislating a target of 200% renewable electricity by 2040.

Under the target, Tasmania would produce twice its current electricity needs and export the surplus. It would be delivered to the mainland via the proposed A$3.5 billion Marinus Link cable to be built between Tasmania and Victoria. The 1,500 megawatt cable would bolster the existing 500 megawatt Basslink cable.

But Tasmania’s climate action should not stop there.

artist impression of marinus link
The Marinus Link would provide a second electricity connection from Tasmania to the mainland.
http://www.marinuslink.com.au

Other opportunities await

Tasmania can use its abundant renewable electricity to decarbonise existing industrial areas. It can also create new, greener industrial precincts – clusters of manufacturers powered by renewable electricity and other zero-emissions fuels such as green hydrogen.

Zero-emission hydrogen, aluminium and other goods produced in these precincts will become increasingly sought after by countries and other states with their own net-zero commitments.




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Tasmania’s vast forests could be an additional source of economic value if they were preserved and expanded, rather than logged. As well as supporting tourism, preserving forests could enable Tasmania to sell carbon credits to other jurisdictions and businesses seeking to offset their emissions, such as through the federal government’s Emissions Reduction Fund.

The ocean surrounding Tasmania also presents net-zero economic opportunities. For example, local company Sea Forest is developing a seaweed product to be added to the feed of livestock, dramatically reducing the methane they emit.

logs on a truck
Retaining, rather than logging, Tasmania’s forests presents an economic opportunity.
Shutterstock

Concrete targets are needed

The Tasmanian government has commissioned a review of its climate change legislation, and is also revising its climate change action plan.

These updates give Tasmania a chance to be a global model for a post-net-zero world. But without firm action, Tasmania risks sliding backwards.

While having reached net-zero, the state has not legislated or set a requirement to maintain it. The state’s current legislated emission target is a 60% reduction by 2050 on 1990 levels – which, hypothetically, means Tasmania could increase its emissions in future.




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Also, despite reaching net-zero emissions, Tasmania still emits more than 8.36 million tonnes of CO₂ each year from sources such as transport, natural gas use, industry and agriculture. Tasmania’s emissions from all sectors other than electricity and land use have increased by 4.5% since 2005.

Without a net-zero target set in law – and a plan to stay there – these emissions could overtake those drawn down by Tasmania’s forests. In fact, a background paper prepared for the Tasmanian government shows the state’s emissions may rise in the coming years and stay “positive” until 2040 or later.

The legislation update should also include a process to set emissions targets for each sector of the economy, as Victoria has done. It should also set ambitious targets for “negative” emissions – which means sequestering more CO₂ than is emitted.

Industrial plant billowing smoke
Tasmania must cut emissions from industry and other sectors.
Shutterstock

Action on all fronts

Under the Paris Agreement, the world is pursuing efforts to limit global warming to 1.5℃ this century. For Australia to be in line with this goal, it must reach net-zero by the mid-2030s.

Meeting this momentous task requires action on all fronts, in all jurisdictions. Bigger states and territories are aiming for substantial emissions reductions this decade. Tasmania must at least keep its emissions net-negative, and decrease them further.

Tasmania has a golden opportunity. With the right policies, the state can solidify its climate credentials and create a much-needed economic boost as the world transitions to a low-carbon future.The Conversation

Rupert Posner, Systems Lead – Sustainable Economies, ClimateWorks Australia and Simon Graham, Senior Analyst, ClimateWorks Australia

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

Net zero won’t be achieved in inner city wine bars: Morrison


Michelle Grattan, University of CanberraAs Scott Morrison gradually pivots his climate policy towards embracing a target of net zero emissions by 2050, he is seeking to distinguish the government from “inner city” types and political opponents who’ve been marching down that road for a long time.

The Prime Minister told a Business Council of Australia dinner on Monday the government was charting its own course “to ensure Australia is well placed to prosper through the great energy transition of our time, consistent with strong action on climate change”.

“The key to meeting our climate change ambitions is commercialisation of low emissions technology,” he said.

“We are going to meet our ambitions with the smartest minds, the best technology and the animal spirits of capitalism.”

Morrison was speaking ahead of this week’s two-day virtual summit on climate called by President Biden.

The Biden administration has made the issue a major policy priority, which has increased the pressure on Australia to sign up to the 2050 target before the Glasgow meeting on climate late in the year.

Morrison acknowledged that “we need to change our energy mix over the next 30 years on the road to net zero emissions”.

But he said “we will not achieve net zero in the cafes, dinner parties and wine bars of our inner cities.

“It will not be achieved by taxing our industries that provide livelihoods for millions of Australians off the planet, as our political opponents sought to do, when they were given the chance.

“It will be achieved by the pioneering entrepreneurialism and innovation of Australia’s industrial workhorses, farmers and scientists.

“It will be won in places like the Pilbara, the Hunter, Gladstone, Portland, Whyalla, Bell Bay, and the Riverina.

“In the factories of our regional towns and outer suburbs. In the labs of our best research institutes and scientists.

“It will be won in our energy sector. In our industrial sector. In our agricultural sector. In our manufacturing sector.

“This is where the road to net zero is being paved in Australia. And those industries and all who work in them, will reap the benefits of the changes they are making and pioneering.”

Morrison said Australia’s natural resources and its industries’ strength presented “a huge opportunity to capitalise on the new energy economy”.

“And let’s not forget that Australia already produces many of the products that will be in growing demand as part of a low carbon future – from copper to lithium.

“It is this practical approach of making new technologies commercial that will see us achieve our goals.”

He said Australia was making real progress.

Its total emissions were 19% lower at the end of 2020 than in 2005.

“Our domestic emissions have already fallen by 36% from 2005 levels.

“Australia has deployed renewable energy ten times faster than the global average and four times faster than in Europe and the United States.

“One in four rooftops has solar, more than anywhere else in the world.

“Australia takes our emission reductions targets very seriously. We don’t make them lightly. We prepare our plan to achieve them and we follow through.”The Conversation

Michelle Grattan, Professorial Fellow, University of Canberra

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

No point complaining about it, Australia will face carbon levies unless it changes course


John Quiggin, The University of Queensland

Reports that Britain’s prime minister Boris Johnson is considering calling for carbon border levies at the G7 summit to be held in London in June have produced a predictable reaction from the Australian government.

The levies would impose tariffs on carbon-intensive goods from countries such as Australia that haven’t adopted a carbon price or a 2050 net-zero emissions target.

Appearing to be shocked by the news, Energy Minister Angus Taylor declared that Australia is “dead against” carbon tariffs.

They were a “new form of protectionism designed to shield local industries from free trade”.

In fact they are already the policy of the European Union and the US, where President Joe Biden calls them a “carbon adjustment fee against countries that are failing to meet their climate and environmental obligations”. Canada, which has an economy-wide price on carbon, isn’t worried.

Saying you’re dead against something doesn’t stop it, and nor does asserting that it is anti free trade, when it is just as arguable that it is pro fair trade because it denies exporters from countries that aren’t taking action against climate change an unfair advantage.

Australia not the primary target

The mining industry itself made this point during the Gillard government’s introduction of Australia’s short-lived carbon price.

It would leave Australian exporters at a “disadvantage compared with international competitors”.

Australia isn’t the primary target in any event. The main aim of carbon tariffs would be to encourage China’s leader Xi Jinping to shift his country’s zero emissions date from 2060 to 2050, benefiting the rest of the world.




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If Xi Jinping does it, he’ll be on a level playing field with much of the world, although not with Australia, whose fate, like that of Britain’s Admiral Byng in 1757 would be used “to encourage the others”.

Complaining won’t much help. The International Monetary Fund has endorsed the idea, saying

in the absence of an agreement on carbon pricing – which would be by far preferable – applying the same carbon prices on the same products irrespective of where they are produced could help avoid shifting emissions out of the EU to countries with different standards

The World Trade Organisation, which has in the past has pushed back against environmental considerations in trade, is neutered.

World Trade Organisation powerless

In the late 1990s the WTO struck down a range of environmental restrictions imposed by the United States that required imported tuna to be labelled “dolphin safe” and required shrimp catchers to take action to protect turtles.

These decisions proved disastrous for the WTO, producing bitter hostility from the environmental movement and contributing to mass protests at the 1999 WTO meeting, which became known as the Battle of Seattle and ultimately killed the Doha round of trade negotiations.

Right now the WTO is in the organisational equivalent of an induced coma. By refusing to fill vacancies as they arose, the Trump Administration denied its appellate panel a quorum, forcing it to stop hearing cases.

President Donald Trump, neutered the World Trade Organisation.
AP

The result is that any appeal to the WTO against carbon border tariffs would be left in limbo. US President Joe Biden has agreed to the appointment of a new WTO director general, stalled by Trump, but is in no hurry to re-establish the appellate body.

Instead, he will first try to refashion the WTO into an organisation that supports his own policies, among them stronger environmental measures, carbon tariffs and “Buy American” provisions. When reformed, the appellate body will give complaints from Australia’s government short shrift.

Prime Minister Scott Morrison has shown some signs of recognising these realities, making baby steps towards announcing a 2050 zero emissions target.

But time is short. Morrison will have to either face down the denialists and do-nothingists on his own side of politics, or set himself, and Australia, up for a series of humiliations on the international stage, with real and damaging consequences.The Conversation

John Quiggin, Professor, School of Economics, The University of Queensland

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

View from The Hill: Now Scott Morrison’s ‘preference’ is for net zero emissions by 2050


Michelle Grattan, University of Canberra

Scott Morrison has taken another, albeit very small, step towards endorsing a target of net zero emissions by 2050.

He told the National Press Club on Monday: “Our goal is to reach net zero emissions as soon as possible, and preferably by 2050”.

This follows his previous wording of wanting net zero “as quickly as possible”.

It remains unclear whether the baby steps will lead to his embracing the 2050 target later this year. But he’d almost certainly like to do so – it would undoubtedly smooth the way with the Biden administration as well as putting Australia in a better position for the Glasgow climate conference in November.

But there are pesky Nationals (and a few others) ready to make the road rocky.

The next climate test for Morrison is President Biden’s planned leaders’ climate summit on Earth Day, April 22.

Climate is at the centre of the Biden agenda, which makes the April summit particularly important.

The President’s climate envoy John Kerry told a White House press briefing last week: “the convening of … this summit is essential to ensuring that 2021 is going to be the year that really makes up for the lost time of the last four years and that the U.N. Climate Conference — COP26, as it’s called, which the UK is hosting in November — to make sure that it is an unqualified success”.

Kerry spoke to energy minister Angus Taylor last week when, according to the Australia readout of the discussion, Kerry “welcomed Australia’s commitment to achieving net zero emissions as soon as possible”.

As, perhaps, one might welcome an infant’s early progress.

Asked on Monday whether he expected to attend the Biden climate conference, Morrison replied cautiously, on the basis of lack of information.

Perhaps he didn’t want to take any risks. In December he was embarrassed when an expected invitation to a speaking spot at the “climate ambition summit” hosted by Britain, France and the United Nations didn’t eventuate. Australia was judged as not having sufficient “ambition” to warrant a slot.

“ At this stage, we haven’t received the details or nature of the event,” Morrison said of the April gathering.

“As you can appreciate, things are very busy over in the White House at the moment.”

When details were received, “then I’m sure the Minister for Foreign Affairs, Marise Payne and I, and Angus Taylor, and others, will discuss what is the best way for us to participate in that and how that will work.

“But we welcome it and we look forward to supporting it.”

Maybe there’ll be more to know when Morrison speaks to Biden. As of Monday, the PM was still waiting fot his first post-inauguration call from the President (they spoke after the election). The Prime Minister’s Office could only say the call was expected “within coming days”.

Morrison on Monday repeated strongly his mantra of advancing climate policy by “technology” not “tax”.

If he does move to the 2050 target, the rationale he will give for the shift will be the progress of technology.

“My commitment to Australians that I will not tax our way to net zero by 2050 is a very, very important one and I will hold my faith with the Australian people on those issues. So we will see how the technology develops,” he said.

If he wished, he obviously could use “technology” at any point as his cover for changing his position. The issue will be if and when he thinks he has the political cover.The Conversation

Michelle Grattan, Professorial Fellow, University of Canberra

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

Vital Signs: a 3-point plan to reach net-zero emissions by 2050



Shutterstock

Richard Holden, UNSW

Every January Larry Fink, the head of the world’s largest funds manager, BlackRock, sends a letter to the chief executives of major public companies.

This year’s letter focused on climate risk. “Climate change has become a defining factor in companies’ long-term prospects,” Fink wrote. To put sustainability at the centre of its investment approach, he said, BlackRock would stop investing in companies that “present a high sustainability-related risk”.




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Now business leaders – even big money managers – express opinions all the time, and major companies keep doing what they are doing. But this was different.

Fink, who’s in charge of US$7 trillion (that’s not a typo – $7,000,000,000,000), says in his letter: “In the near future – and sooner than most anticipate – there will be a significant reallocation of capital.”

It’s emphasised in bold type. That’s something to which chief executives pay attention.

Even before the letter was sent – but knowing what was coming – major US companies like Amazon, Delta Air Lines and Microsoft announced new climate action plans.

These three companies are in different industries with different abilities to take action. But the plans they’ve outlined illuminate the three key strategies needed to achieve net-zero carbon emissions by 2050.

Delta Air Lines

Delta, being an airline, burns a lot of fossil fuels. Bar an extraordinary technological shift in aircraft, it will burn a lot of fossil fuels well into the future.




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The airline’s goal by 2050 is to cut its carbon emissions to half the levels they were in 2005. It plans to do this through a combination of fuel-efficiency measures and helping spur the development of more sustainable jet fuels. In the medium term (up to 2035), its goal is “carbon-neutral growth”, buying carbon offsets for any increases in emissions from jet fuel due to business growth.

Delta Air Lines operates about 5,000 flights a day. Jet fuel accounts for about 99% of its total emissions.
Shutterstock

Let’s consider the economics of the Delta plan – at least up to 2035.

Buying carbon offsets increases the airline’s costs. These are passed on to customers – in which case it is simply a form of carbon tax – or paid for by shareholders through lower profits. I’m betting it’s not the shareholders who will pay.

So Delta is essentially imposing its own carbon tax in the hope customers who care about the environment will be more attracted to its brand or that other airlines follow suit.

Amazon

Amazon, which reported a carbon footprint of 44.4 million metric tons in 2018, is doing two broad things.

The company has a fleet of about 30,000 delivery vans. It plans to have 100,000 electric vehicles by 2024. This will reduce the company’s carbon footprint so long as the vans are charged with power from sustainable sources.

Amazon’s founder, Jeff Bezos, has also announced the Bezos Earth Fund, which will give away US$10 billion in grants to anyone with good ideas to address climate change or other environmental issues.

Again, let’s consider the basic economics at play here.

Moving to electric vehicles is a smart hedge against rising fuel costs from a price on carbon – something that already exists in California.

The Bezos Earth Fund, meanwhile, is an excellent example of taking money generated from maximising shareholder value – Amazon is valued at about US$1 trillion and Bezos’s personal fortune (pre-divorce) was about US$130 billion – and redistributing it to socially productive causes.

Microsoft

Finally, Microsoft – the least-carbon-intensive business of the three mentioned here – plans to be carbon-negative by 2030, and by 2050 to have offset all the emissions it has been responsible for (both directly and through electricity consumption) since its founding in 1975.

Since 2012 it has had an “internal carbon tax”, which in April 2019 was doubled to US$15 a tonne. This price mechanism is used to make Microsoft’s business divisions financially responsible for reducing emissions.

On top of this, Microsoft has developed the AI for Earth program, which provides cloud-computing tools for researchers working on sustainability issues to process data more effectively.

Lessons for Australia

Australia’s Coalition government and Labor opposition would do well to heed the lessons of these three companies.

Together they show three clear strategies:

  • a technological push to lower emissions
  • a price on carbon to drive technological innovation and uptake
  • clear goals to reduce emissions.

Our political parties both have one out of three. Right now Labor has announced a goal. The Coalition is promising a technology plan some time soon.

Prime Minister Scott Morrison is right to criticise Labor for not having a plan. Opposition Leader Anthony Albanese is right to criticise the Coalition for not having a suitable goal.

But neither of them advocates a price on carbon, without which neither technology road maps nor ambitious goals will translate into sufficient emissions reductions.




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Technology investment, a carbon price and clear goals are all necessary to effectively reduce carbon emissions. Without all three we are bound to fail.

And we no longer have time for that, according to climate scientists.The Conversation

Richard Holden, Professor of Economics, UNSW

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

Australia’s biggest property companies are making net-zero emissions pledges – now we can track them



Huge crowds marched last week to demand progress towards net zero emissions – and companies are listening.
AAP Image/James Ross

Amandine Denis, Monash University

Corporate Australia is taking action on climate change. Most recently, at the UN Climate Summit, Atlassian cofounder Michael Cannon-Brookes announced the A$26 billion Australian software company’s commitment to net zero emissions by 2050.

Net zero pledges like this are becoming more common but currently there is no way to really track momentum towards net zero emissions across different sectors of the economy.




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Now, a Net Zero Momentum Tracker initiative has been established by ClimateWorks Australia and the Monash Sustainable Development Institute to track emissions reduction commitments made by major Australian companies and organisations, as well as state and local governments.

The tracker aims to place all commitments to net zero emissions in Australia in one place and evaluate how well they align with the Paris climate goals.

Property sector tracking towards net zero emissions

We began by assessing Australia’s property sector. Last week we released a report examining all property companies listed in the ASX 200, plus all of those required to report their emissions under the National Greenhouse and Energy Reporting Act.

Among the companies we looked at are Dexus, Mirvac, Stockland Corporation, GPT Group, and Lendlease. They develop, own or manage some of Australia’s largest corporate offices, commercial properties, retail centres, retirement villages, and residential developments.




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The report found almost half – 43% – of Australia’s largest listed property companies have made commitments that closely align with the Paris Climate Agreement, aiming to achieve net zero greenhouse emissions before 2050 for their owned and managed assets.

Significantly, the six companies with the most ambitious net zero targets represent 36% of the ASX 200 property sector. Among these six, several major companies – Dexus, Mirvac, GPT Group, and Vicinity – are aiming for net zero emissions by 2030, demonstrating the business case for strong climate action.

Sector leaders can inspire copycat action

By highlighting what action organisations are taking and how, the Net Zero Momentum Tracker initiative aims to encourage more organisations to make and strengthen commitments to reduce their emissions, in line with the goal of net zero emissions by 2050.

For example, Australia’s largest owner and manager of office property, Dexus, has a comprehensive strategy for reaching its goal of net zero emissions across the group’s managed property portfolio. This includes reducing energy use, shifting to renewable electricity, electrifying their buildings, and reducing their non-energy emissions from waste, waste water and air conditioning.

Of particular significance is Mirvac’s pledge to be “net positive” by 2030. This means the company aims to go beyond net zero, reducing emissions by more than its operations emit. Mirvac has established an energy company to install rooftop solar on their commercial buildings and is selling power to occupants, among other initiatives. The company also has a “house with no bills” pilot project, to explore how their upstream indirect emissions can be minimised for residential developments.




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Green buildings must do more to fix our climate emergency


Another major company, the GPT Group, has extended its commitment beyond the assets it owns and manages to all buildings it has an ownership interest in, including buildings it co-owns or does not manage.

These companies will get multiple benefits from their action, including reduced operating costs, better health and productivity for occupants, and increased sales prices, rents and occupancy rates.

Need to accelerate action

While many property companies are tracking in the right direction, none of the companies we considered had net zero targets which comprehensively covered all of their emissions – such as those from co-owned assets, their supply chains and investments.

There is still significant opportunity for property companies to strengthen their commitments towards net zero emissions. This requires targets which address the full scope of direct and indirect emissions within each company’s influence, supported by detailed plans to achieve this.




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By making these public commitments to reduce emissions, the property sector is helping build momentum towards achieving this goal across the entire Australian economy.

The next assessments to be undertaken by the Net Zero Momentum Tracker initiative include the banking sector and state and local governments.The Conversation

Amandine Denis, Head of Research, ClimateWorks Australia, Monash University

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