Hazelwood Power Station, Victoria. Credit: Damian Baker.
By Rich Bowden
Australia has been ranked last amongst developed nations with regard to its clean energy competitiveness, according to an international report.
The study, commissioned by environment groups E3G and the Climate Institute (Australia), found Australia ranked 15th in G20 countries in terms of its expected competitiveness in a carbon-reducing world with only developing nations South Africa, India, Saudi Arabia and Indonesia considered to be worse off.
Australia also rated a poor 16th by the analysis in how likely it was to limit global warming to under 2 degrees.
”The largest turnarounds in carbon productivity [to achieve the target] are required by Australia, Turkey, Russia and Saudi Arabia,” the report says. ”The longer these countries take to achieve these turnarounds, the more costly the eventual transition will be.”
Threat to investment
The study, by UK-based Vivid Economics, suggests Australia’s strong reliance on coal-sourced energy and heavy reliance on heavily-polluting exports had contributed to its poor ranking, with the danger that many investors will turn to more flexible countries better positioned to take advantage of a switch to lower emissions industries.
“Assuming global moves to lower emissions, economies that grow as they lower emissions will become the most attractive to investors,” Investor Group on Climate Change‘s spokesman Nathan Fabian told the Australian Broadcasting Corporation (ABC).
Clean energy rally, Melbourne,June 2009. Credit: Takver/flickr
“If Australia lags other economies in reducing emissions, local investors will look to economies that provide both economic growth and lower emissions risks.”
Released ahead of the G20 talks, the report outlined the need for an increase in investment for clean energy.
“World leaders gathering next week for UN and G20 Summits must increase financial and investment incentives for clean technologies in developed and developing countries,” said Climate Institute CEO, John Connor. “This will be critical to building an ambitious outcome in Copenhagen which could be the engine for low carbon growth for decades to come.”
