ReGen Strategic
Photo credit: SBS News
There are several well-worn truisms in Australian politics.
“Disunity is death” is one that all political parties recognise.
Bipartisan support for a (rare) successful referendum is another.
The same is likely true for any substantial policy goal.
In abandoning net zero by 2050, the actions of the Federal Liberal Party will take some time to evaluate.
Without support from both major parties, the door is open for increased volatility, as commentators are given room to attack a prior consensus and investment becomes less certain.
There are a host of reasons to suggest this should be electoral suicide, based on polling analysis of younger, metropolitan voters and the swag of leafy Teal seats that ordinarily would house a future Liberal Cabinet.
Aside from immediate political ramifications, a challenge emerges from the room that is now created for backsliding on what net zero was meant to be stimulating.
This was seen immediately last week, initially in media commentary and then in remarks through corporate reporting season. In effect, if it isn’t a priority for one of the two parties of government in Australia, then what responsibility should a private company have to bear?
Net zero by 2050 is hardly a radical policy ambition.
It has become the backbone of almost all modern economies and business models. As outlined by the International Energy Agency, it provides an “even” chance of limiting global temperature rises to 1.5 degrees and avert the worst impacts of climate change.
Given Australia’s recent experience with bushfires, floods and cyclones, it should give politicians pause for thought about the ramifications of further warming.
A research project commissioned by the Forest Stewardship Council last month highlighted the challenge faced by Australian governments and policy makers, with a global survey indicating that Australia recorded the sharpest decline in concern regarding climate change.
Climate change is still a concern for Australians, but it perhaps has become less existential as cost-of-living and housing affordability pressures continue to bite.
This policy juncture also comes at a time when the heavy lifting for the energy transition is about to commence.
Legislation and policy change is hard enough, but the business cases for industrial decarbonisation and market-creating capital expenditure are about to thud onto boardroom tables.
As an adviser to a range of entities involved in Australia’s energy transition, ReGen Strategic regularly supports efforts to engage with local communities in order to navigate change.
At the heart of these efforts, whether led by a proponent or government, is a need to bring communities into this change at the earliest stage possible.
With an absence of political consensus, the role for proponents to support this engagement and advocacy regarding the energy transition has become even more pronounced.