2035 climate targets show the ‘industries of the future’ are the industries of today
Australia has a new 2035 climate target of reducing greenhouse gas emissions by 62-70% compared with 2005 levels.
Today’s announcement has already kicked off debate about whether the target is too ambitious, or not ambitious enough.
However, some of the most striking language to come out of today’s announcement was the government’s framing of the 2035 targets as central to Australia’s future economic growth, productivity and prosperity.
While protecting our climate, environment and way of life was mentioned as some of the key reasons to act, it was the economic opportunity that took centre stage in the government’s argument:
“The global shift to clean energy is the biggest economic transformation since the industrial revolution.”
“If we make the right investments at the right time, we can grow our economy, create good jobs for Australians.”
“Private investment will be the thing that help us achieve this ambitious target.”
- Minister for Climate Change and Energy Chris Bowen
“The baseline scenario would see our economy $2.2tn bigger by 2050 and an extra $36,000 per person wealthier 5.1 million jobs and investment up 80%.”
- Treasurer Jim Chalmers
This positive tone – and the focus on the huge economic benefits for Australia from acting is smart communication. It is also a stark contrast to the climate debate of the past, where advocates for climate action focused on the environmental cost of inaction.
Today, governments, industry leaders and environmental advocates are making the economic argument for action central to the case for accelerating the transition to net zero.
It’s a smart strategy and one that can resonate with everyday Australians who, while they care about the climate and environment, are mostly focused on getting by, paying the bills and navigating the cost of living.
From a broader economic perspective, it’s also smart policy. From our experience, it’s clear that the so-called ‘industries of the future’, are actually the growth industries of today. This is clear from growing investment in innovation, technologies and solutions that reduce emissions, reduce energy costs, create jobs, stimulate growth and deliver better outcomes for investors, people and the planet. For example, a report from the Clean Energy Council shows 2024 was the largest single year of clean energy investment in Australia’s history (at $12.7 billion).
At Kaizen, we are proud to be supporting many amazing leaders and organisations that are driving this critical transformation forward, and delivering better outcomes for Australia. In the last six months, for example, some of the sectors and initiatives Kaizen has provided strategic communication support to include:
large scale wind energy
battery storage technology
regenerative agriculture
climate finance
virtual power plants
green iron and steel
energy market tools and reform
sustainable ship design (low and zero emission vessels)
recycling and creating a circular economy
climate resilient city planning and climate adaptation for industry and communities
climate and environmental philanthropy
sustainable home design.
Despite some American-made speedbumps, it’s clear that momentum, investment and the world’s best and brightest talents are only going one way – towards the businesses, industries, technologies and ideas that deliver a more sustainable and resilient future.
Today’s 2035 climate target announcement sets a clear direction for the Australian economy. It also reinforces that the future is now, and makes clear the opportunity for smart investors, companies, entrepreneurs and governments to seize the moment for building a more resilient, smarter and stronger Australia.