INDUSTRY-LED APPROACH TO ZERO-CARBON
Alison McKenzie MBA BBus ACEcD
New legislation enshrined into the Australian Parliament in 2022 set emission reduction targets of 43 per cent of 2005 levels by 2030 and net zero emissions by 2050 . The new legislation provides the catalyst for vast change in the zerocarbon sector through the deployment of renewable energy ; decarbonising transportation ; retrofitting buildings and managing scarce resources through circular economy initiatives .
The impact of these changes has created an unprecedented opportunity for the zero-carbon workforce , across the nation , including both regional areas and capital cities . Deloitte Access Economics estimates net zero will deliver up to $ 680 billion to the Australian economy by 2070 and create an additional 250,000 jobs . ( Deloitte Access Economics , 2020 ) Meeting the future workforce needs with demand for skilled tradespeople , energy professionals and the emerging ‘ digitallyenabled workforce ’ is one of the biggest challenges the sector faces . ( RACE 2030 , 2021 )
In 2019 , the City of Melbourne declared a Climate and Biodiversity Emergency , joining 1400 jurisdictions across 27 countries through a local and international movement , recognising that climate change poses serious risks to the people of Melbourne and Australia .
THE ZERO-CARBON OPPORTUNITY Australia ’ s natural advantages provide key assets in transitioning to a zero-carbon economy , including an abundance of renewable energy resources such as solar , wind , and geothermal . The continent has the highest solar radiation per square metre of any continent , equating to the best solar energy resources in the world ( Australian Government , 2023 ).
The abundance of land provides space for renewable energy infrastructure such as solar and wind farms , reforestation projects and carbon sequestration – the process of capturing and removing carbon dioxide from Earth ’ s atmosphere . ( Australian Government , 2023 ) Australia ’ s vast reserves of natural gas has the potential to be converted to hydrogen using renewable energy sources . ( ARENAWIRE , 2018 ) These assets , along with the country ’ s strong research and development sector , natural curiosity , and government support are catalysts to drive innovation and create generational change .
Victoria ’ s renewable energy sources generated almost 30 per cent of all electricity production in 2021 . ( Victoria State Government , 2020 ) Large-scale renewable energy projects created almost 5,200 jobs in Victoria and over 35,000 nationally by the end of 2021 , securing over $ 18 billion worth of investment . ( Clean Energy Council ,
2022 ) Other targeted areas for emission reductions include transport which is the state ’ s second largest polluter and , transitioning buildings and housing stock to align with emission targets .
Globally , investments in companies involved in ‘ climate tech ’ are experiencing significant growth . In 2022 , venture capital funding for climate tech was US $ 70.1 billion , up 89 per cent on 2021 . Climate tech venture funding is now 40 times larger than it was a decade ago ( HolonIQ , 2023 ) with global climate tech unicorns reaching 83 in January 2023 , collectively valued at over $ 180 billion .
In Australia , 4,000 jobs are supported by 171 Climate Tech startups with a total valuation exceeding $ 4.2 billion . ( Climate Salad , 2022 ) Expected growth in demand for green goods and services will create a global opportunity worth US $ 10.3 trillion by 2050 ( approximately 5 per cent of global GDP ). ( Lambert , 2022 )
CLUSTER COLLABORATION Studies on the geography of innovation activity highlights that clusters are a key contributor to economic growth and competition . ( Australian Government - Office of the Chief Economist , 2016 ) Clusters are characterised as dense concentrations of related activity within a specified geographical location . Clusters
VOL 16 NO 1 2023 28 www . edaustralia . com . au