The net zero emissions target by 2050 is a rational and much-needed emissions reduction target. It is key for Australia to set and meet a net zero emissions target to keep in line with the Paris Agreement to limit warming to less than 2 degrees (and aiming for 1.5 degrees) above pre-industrial levels. The emissions target of net zero by 2050 is aligned with many other countries such as the UK, France, Denmark, New Zealand, Japan and South Korea, and China by 2060. Australia must align itself with world trends on emissions to maintain strong trade in a net zero emissions world. It is key to signal to Australian industry the need to develop green products and services that will flourish in a net zero emissions world and strengthen Australia’s global competitiveness. IEEFA comments on components of the Climate Change Bill 2020, and provides more detail on the increasing pressure being brought to bear by globally significant financial institutions – banks, insurers and asset owners/asset managers – as well as Australia’s major trading partners and a growing number of global and Australian corporate leaders.
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