Media release

New markets, new industries, new jobs need climate action now

13 March 2009
A major Australian business group today rejected calls for the deferral of the introduction of an Australian carbon emissions trading scheme.

Environment Business Australia (EBA) CEO, Fiona Wain said today that last night's comments by the CEO of Australian Industry Group Heather Ridout that Australia should stall on climate change action (ABC's 7.30 Report Thursday 12 March) were illogical and not representative of Australian business as a whole.

EBA is a business think tank with membership drawn from many of Australia's leading companies (see Members).

"The economic repercussions of climate change could make current turmoil on financial and economic markets look like a Sunday afternoon picnic", Ms Wain said.

The 'action now' message is reinforced by leading climate change scientists meeting in Copenhagen, she said.

"Revised predictions coming from these scientists today that sea level may rise by up to 2m by the end of the century, highlight the urgency of action", she said.

"Water, food production, health and international security are all at risk.

"There is no two years' slow time available to us. Atmospheric concentrations of greenhouse gases are already in the danger zone (455 ppm in 2006, IPCC data). Either we act now or we hand away our options".

The EBA CEO said investment into combating climate change is an important part of helping sectors of industry make the transition to the severe decline of economic markets. This is a focus of the United Nation's 'Global green new deal' approach to revitalising financial and economic markets.

Suggestions that companies will relocate overseas because of an emissions trading scheme glossed over some fundamentally important questions.

How many companies with a reputation to protect are likely to seek a licence to pollute from their shareholders, investors, bankers and insurers, and abandon sunk assets, good resources, skilled staff and robust infrastructure to move off-shore looking for short-term and unguaranteed protection from a price on carbon?
Where is the consideration that international investors and consumers are increasingly demanding goods and services with a low/no carbon footprint?
What is the risk profile for amortisation of new long-term infrastructure in countries that have less stable economies/political regimes?
How much research has gone into when these 'other' countries are likely to enter the carbon market because of the technology and capital flows that will ensue?