MITIGATION Mitigation actions are focussed on the reduction of greenhouse gas ( GHG ) emissions . Potential pathways for ED projects to help reduce these emissions range from the very large scale , such as providing supporting hard and soft infrastructure to enhance Renewable Energy Zones and associated economic activity , to the relatively small – but still important – actions such as offering a ‘ library ’ for e-bikes and / or scooters . Other ideas might include :
• Increasing public and active transport options to reduce car use
• Investing in charging infrastructure to support electric vehicle uptake
• Waste policies that maximise recycling and minimise landfill
• Ensuring new built projects have minimal embodied emissions ( i . e . use green materials ), leverage green energy and maximise energy efficiency through the design process
• Embracing circular economy strategies through design processes
• Maximising green spaces , eliminating pests , and restoring native vegetation .
In any new project or strategy , considering how emissions reduction strategies can be embedded will collectively help Australia reach its target for Net Zero that much quicker , helping to reduce the longer term risks we will otherwise face .
ADAPTATION Adaptation is about responding to the impacts of climate change .
Primarily , we tend to think about the physical risks involved . As the National Emergency Management Agency ( NEMA ) has noted , in announcing funding for the Disaster Ready Fund ( DRF ), “ Australia ’ s exposure to disaster risk continues to increase , with new risks emerging at an accelerated pace . Extreme heat , heavy rainfall , coastal inundation , and bushfires are increasingly impacting our communities , environment and economy .” 4
Adaptation planning could involve anything from levees and fire breaks to evacuation readiness plans . For EDOs , understanding the risks to projects is paramount to be able to ensure that maximum risk mitigation strategies are in place . For example , a new walking trail to attract additional tourism should take into account potential flood and fire risk when routes are being plotted .
It is not just extreme ( or ‘ acute ’) events that need to be considered . So-called ‘ chronic ’ risks , such as rising average temperatures and sea levels , also need to be factored into planning . Planning for expanded green and open spaces or sporting facilities needs to take account of increased numbers of extreme heat days , which are rising as average temperature rise ( and not just in El Nino years ). This means factoring in sufficient shaded spaces and access to drinking water . Or considering river levels for water-based sporting competitions that your region may host . Use of green coverage is also an important adaption strategy to reduce heat , as well as helping to mitigate emissions . This should be considered even when planning projects such as a new civic centre community space or even a car park .
Importantly , adaptation strategies also need to consider , transition risk associated with the passage to a Net Zero economy in response to climate change . Perhaps the greatest challenge facing many communities is how to plan for an orderly transition when a regions is currently highly reliant on emissions-intensive industries such as fossil fuel extraction and energy generation .
The good news is that there are many opportunities for Australia from the green industrial revolution that is now underway . From renewable energy zones to critical mineral extraction as well as development of new green industries , especially minerals and metal processing as well as hydrogen and its downstream products such as ammonia and urea , new or reshaped industries are evolving . Alongside these , Australia will continue to develop its very strong services sector , with demand continuing to grow strongly for education and health services as well as financial services .
Ultimately , the mindset of an EDO needs to be : what are my climate and environmental risks , how will these affect my community and our economy , and how should I consider these factors when planning and implementing my next project or strategy ?
CONSIDERING THE COSTS Of course , there are economic considerations to all of these newly evolving strategies . This is when a robust approach to cost benefit analysis needs to be deployed . Often , it can be challenging to incorporate social and environmental outcomes into a CBA , but we are rapidly enhancing and advancing our ability to do this .
As an example , and of particular importance , EDOs should consider the costs of projects where emissions are increasing against the benefits of projects where these decrease . The NSW Treasury 2023 Guide to Cost benefit Analysis provides clear methods to value carbon emissions , improvements in physical activity and even wellbeing . When a comprehensive and robust approach to measuring costs and benefits is undertaken , we often find strong economic benefits from addressing environmental and social challenges .
REFERENCES Beer , A & Clower , TL 2020 , Globalization , Planning 1 . Kompas , T ., Witte , E . and Keegan , M . 2019 , Australia ’ s Clean Energy Future : Costs and Benefits , MSSI Issues Paper 12 , Melbourne Sustainable Society Institute , The University of Melbourne .
2 . Australian Government , Intergenerational Report 2023 , Australia ’ s future to 2063 , accessed at https :// treasury . gov . au / publication / 2023- intergenerational-report
3 . Song , J ., Tong , G ., Chao , J . et al . Data driven pathway analysis and forecast of global warming and sea level rise . Sci Rep 13 , 5536 ( 2023 ). https :// doi . org / 10.1038 / s41598-023-30789-4
4 . https :// nema . gov . au / disaster-ready-fund
ABOUT THE AUTHOR
NICKI HUTLEY Nicki Hutley is a highly experienced economist , with broad-based expertise in both macroeconomics and microeconomic policy gained over more than three decades in financial and investment markets and in economic consulting . She is particularly interested in the intersection of economy , society and environment .
After many years in the corporate world of banking , investment and consulting , Nicki is now an independent economist and keynote speaker . Nicki helps her clients top measure the impact of policies , programs and projects using triple bottom line Cost Benefit Analysis .
Nicki is also the Chief Economic Adviser to the Customer-Owned Banking Association and a member of JANA ’ s sustainability advisory committee . Nicki is also a highly sought-after keynote speaker on long and short term economic issues , with a lens on social and environmental influences . She is also a frequent commentator in the media , and a regular guest on both The Drum and The Project .
In 2020 , Nicki was appointed as a Councillor for the Climate Council . Nicki is an economic adviser to the Financy Women ’ s Index , a committee member for the Australian Business Economists and she was President of the Economics Society of Australia ( NSW Branch ) from 2021 to 2023 .
ECONOMIC DEVELOPMENT JOURNAL VOL 16 NO 3 2023 17