Australia has less than three decades to achieve a net-zero economy – a target our nation committed to last year. The transition presents a massive opportunity for our economy and for driving global innovation, but it is also a formidable challenge.
The scale of this opportunity is so significant that many businesses have already taken steps along their decarbonisation journey because they see a strategic imperative to move. As a nation, rebasing our energy system stands to deliver an enviable comparative advantage. Our abundance of natural resources, our experience as a commodities exporter, our global connectivity and our stable regulatory environments are all competitive advantages that will help us help the world along this journey.
Of course, the transition to a carbon neutral economy will have its challenges. Achieving net-zero will require investment – an estimated US$9.2 trillion a year in spending on assets globally, according to McKinsey. It will require extensive coordination across business, industry and government, and significant investment in new technology, infrastructure and processes. It calls on all of us across Australia to consider the roles we can play to ensure our country and planet continue to thrive.
Part of the complexity lies in converting the big picture aspiration into concrete, actionable steps we can all take today and over the next three decades to help Australia reach its goal.
At CommBank we have identified five areas for action on a system-wide basis. These focus areas are: greening the grid, electrifying everything, replacement and refurbishment of the machinery of the economy, shifting our approach to land use, and abating and offsetting emissions. We are supporting our customers across these areas of action as Australia advances towards net zero.