(Bloomberg) --
Australia's economy could contract by 6% over the next five decades if climate change goes unchecked, according to Deloitte Access Economics.
That's equivalent to a A$3.4 trillion ($2.4 trillion) loss in gross domestic product and 880,000 fewer jobs, Deloitte said in a report published Monday. The group said its modeling differs from others in setting a benchmark for growth which incorporates the damage caused by global warming and against which the cost of inaction is assessed.
“By 2050 Australia will experience economic losses on par with Covid every single year if we don't address climate change,” said report author Pradeep Philip, a lead partner at Deloitte Access Economics. “That would compromise the economic future of all future generations of Australians.”
The national government is pursuing what it calls a technology-based approach to cutting emissions, while refusing to put a price on carbon and steering clear of the net-zero emissions goal that is increasingly being adopted by countries around the world.
Currently more than 30% of national income comes from industries exposed to economic disruption and risk from climate change, according to the report. On the other hand, the country stands to gain significantly if more positive action is taken to transition to a low carbon future, Philip said.
Investments targeted at delivering net-zero emissions by 2050 and consistent with keeping global warming to 1.5 degrees Celsius (2.7 degrees Fahrenheit) above pre-industrial levels could add A$680 billion and boost the economy by 2.6% out to 2070, the report found. Philip cited opportunities in mining new minerals for emerging technologies, investment in the upgrade and replacement of energy and transport infrastructure, and improving emissions efficiency in traditional economic sectors.
“Yes, there'll be costs,” Phillip said. “And there'll be some losers. But we'll all be losers if we fail to act.”
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