Environmental Sustainability - 2024 policies and objectives

Syllabus Topic

HSC Topic Four - Economic Policies and Management

Economic objectives in relation to:

• environmental sustainability

Environmental Sustainability as an Economic Objective

Environmental sustainability is crucial for a balanced future because it addresses the social costs of environmental degradation, such as health problems, loss of biodiversity, and climate change impacts, that can manifest into broader economic impact. However, integrating sustainable practices often creates tensions with traditional economic objectives like economic growth, price stability, and external stability. Sustainable initiatives can lead to increased costs and shifts in industry practices. Despite these challenges, they open new job opportunities in green sectors and foster innovation. Balancing economic growth with environmental protection requires innovative solutions and policies, ensuring a prosperous and sustainable world that mitigates social costs.

AUSTRALIA’S POLICIES  

Paris Climate Agreement and 2030 goals:

• Commitment to Agreement: Australia ratified the Paris Climate Agreement in 2016, pledging to reduce greenhouse gas emissions and contribute to global efforts to limit global warming.

• Mixed Progress:  Australia's emissions projections suggest progress towards meeting its 2030 emissions reduction target, with a projected reduction of CO2 pollution by 42% below 2005 levels. However, new fossil fuel projects continue to be supported by the government, potentially undermining progress towards climate goals, especially with calls for more ambitious emission reduction targets, such as cutting emissions by at least 50% by 2030. There is also contention around Australia’s long-term emissions reduction plan relying on unrealistic technological fixes, emissions offsets, and accounting tricks, making the goal of reaching net zero emissions by 2050 out of reach.

• Implications: Failure to meet its emissions reduction targets could have significant implications for Australia, including economic impacts from climate change, reputational damage internationally, and increased vulnerability to climate-related disasters.

New Sustainability Standards – Federal contract bidders

• Companies bidding for federal government contracts will need to meet new sustainability standards, including the use of recycled content, to promote Australia's circular economy.

• Environment Minister Tanya Plibersek announced the new rules, which will initially apply to government construction services contracts worth over $7.5 million from July 1, 2024.

• Contractors will be required to report on waste reduction and repurposing efforts, as well as the substitution of single-use materials with recycled content.

• The rules will be extended from July 2025 to include contracts for textiles, information technology purchases over $1 million, and contracts related to new furniture, fittings, and equipment.

• These rules aim to reduce waste to landfill, boost recycling, and cut emissions while supporting local jobs and businesses.

• Research suggests that embracing the circular economy model could significantly benefit Australia's GDP and job creation.

Clean Energy transition

• Renewable Energy Expansion: Australia's commitment to expanding renewable energy capacity is expected to increase investment opportunities in wind and solar power projects, leading to a surge in renewable energy exports to Asia and strengthening economic ties in the region.

• Hydrogen Energy Leadership: Australia's initiatives in hydrogen energy are positioning the country as a global leader in hydrogen production. This advancement is seen as beneficial for Asian countries seeking to diversify their energy sources and reduce carbon emissions.

• Carbon Neutrality Goals: Australia's policies aiming for carbon neutrality by 2050 set a precedent for other nations in the region. This proactive approach is expected to encourage Asian countries to adopt similar measures, fostering regional cooperation in addressing climate change.

• Sustainable Development: Australia's green energy policies prioritize sustainable development practices, emphasizing environmental preservation and resource management. This approach serves as a model for Asia, demonstrating how to balance economic growth with ecological responsibility.

• Potential for Regional Collaboration: Australia's green energy initiatives are predicted to have a ripple effect across Asia, promoting the adoption of clean energy technologies and practices. Countries like Japan, South Korea, and India are expected to benefit from technological transfers and increased access to renewable energy resources.

Sources

The Guardian: Australia To Bring Evidence It Can Meet 2030 Climate Target but Pressure Builds Over Fossil Fuels

The Conversation: Australia’s Net Zero target is Being Lost in Accounting Tricks, Offsets and More Gas

Australian Financial Review: Federal Contract Bidders Will Need to Hit Sustainability Targets

European Parliament: Circular Economy- Definition, Importance and Benefits