Perspective article

By Fiona Wain, CEO, Environment Business Australia
May 2006

"Leadership, like time, is a scarce resource. History judges political leaders by whether or not they respond to the great issues of their time. For today�s leaders, that issue is how to move the global economy onto an environmentally sound path. We need a national political leader to step forward, an environmental Churchill, to rally the world around this effort." Lester R. Brown (an excerpt from his new book, see the international section below)

April was a very busy month for the environment industry and Environment Business Australia. EBA held two very successful events, the first on climate change action and the second on forestry, both dealing with the environmental, economic, industry development and humanitarian aspects of change (more information below, including how to access the papers).

And business leadership was certainly evident - the Business Roundtable on Climate Change released their report "The Business Case for Early Action". Environment Business Australia wishes to acknowledge the Chief Executive Officers of BP Australia, Insurance Australia Group, Origin Energy, Swiss Re, Visy Industries and Westpac. These six business leaders, together with the Australian Conservation Foundation, have stepped forward to call for greater action on climate change through the work of the Australian Business Roundtable on Climate Change.

Core recommendations of the Roundtable are:

Design a 'long, loud and legal' framework to establish a carbon price signal
Encourage innovation and investment in emerging and breakthrough technologies
Build national resilience to the impacts of climate change

A report commissioned by the Roundtable and prepared by CSIRO has found that a 60% or greater reduction in developed countries' greenhouse gas emissions by 2050, as part of an international response, is a necessary precaution against some of the worst case scenarios of climate change in Australia. In these circumstances immediate action on the Roundtable's recommendations is essential.

Evidently the report is having an impact judging by the frenzied op-ed pieces appearing in the media - and those which are negative to the Roundtable's finding show little concern for the foreseeable impacts of climate change on the economy, society and the environment.

The Business Roundtable, in similar findings to EBA work over recent years, suggests that early action will be more effective and will cost less. And a portfolio approach which includes a carbon price signal is important if we are to stand a reasonable chance of catalysing new technology R&D, commercialisation and deployment including export to rapidly developing countries such as China and India.

Collateral damage (externalities) - be it climate change, dryland salinity, acid sulphate soils, river and groundwater degradation, pollution or general inefficiency and waste - create an exponential growth curve of cost for future generations to deal with. How much wiser, safer, and economically prudent it would be to try to avoid damage in the first place. And, as Dr David Brand says below, make sure that Australia is engaged in the new environmental markets.

The roundtable's findings can be viewed at www.businessroundtable.com.au; accompanying reports "Climate change impacts on Australia and the benefits of early action to reduce global greenhouse gas emissions" prepared by CSIRO Marine and Atmospheric Research can be seen at www.dar.csiro.au. And the Allen Consulting Group "Deep cuts in GHG emissions.