The Reserve Bank warns that Australia is at increased risk for global investors to sell bonds and equities if it does not involve other countries in its 2050 net zero emissions commitment.
As Scott Morrison is trying Convince the public to adopt new climate change initiatives Prior to Cop 26 in Glasgow, RBA Vice President Guy Debel said at an investment meeting Thursday that “most conversations with foreign investors have increased climate risk. This is a significant change from a few years ago.” ..
“So far,” Debel said, “with a few exceptions,” there has been no noticeable change in investor motivation for Australian bonds and equities. He said Riksbank stopped investing in bonds issued by the Queensland and Western Australian governments “a few years ago.”
However, the Deputy Governor of the Reserve Bank said the outlook was clear. “Many of these sale decisions run the risk of being seen earlier, not later.”
“Governments in other jurisdictions are implementing net-zero policies,” Debel said.
“Both of these effectively increase the cost of high-emission activities in Australia.
“Therefore, regardless of whether we think these adjustments are appropriate or fair, they are happening and need to be considered. An important risk is that these forces intensify from here. Is to do. “
Debel before warning He argued that climate change poses a risk to financial stability, and that warming needs to be seen by policy makers and businesses as a trend rather than a cyclical event.
Treasury officer Josh Frydenberg drew a similar theme in a speech that recently presented an economic case for Australia to adopt the Net Zero goal.He warned Australia had a lot to lose If participants in the world’s capital markets believed that “we are not migrating like the rest of the world.”
The transition to low emissions “provided many opportunities for Australia,” RBA Vice-President said Thursday.
“Australia has been an energy exporter for decades, reflecting our donations, and there is no reason for this to change,” he said.
“Australia is also endowed with resources that have the potential to continue to be an energy exporter, but renewable energy rather than high-emission fossil fuels.”
Debel pointed out that this transition would cost some local communities.But he said the ongoing economic changes In the South Australian city of Port Augusta “There may be opportunities in the exact same community,” he said.
He said the Australian states are pursuing policies to promote the transition, including policies to address the challenges of regional structural adjustment. “Similarly, Australian companies are aware of and investing in the opportunities posed by climate change.
“There are future challenges in managing transitions and managing financial risk,” he said. “But with risk, there is great potential for rewards.”
In addition to promoting a promise of net zero emissions before Glasgow’s Cop 26, the Prime Minister has invested Business community Promises to reduce emissions by about 50% by 2030 Scientific advice When Goals set by major developed countries..
The Nationals have not yet participated in the 2050 commitment. The Cabinet discussed the policy roadmap and financial model that underpin the plan on Wednesday. No decision was made. The Kuomintang party room will meet on Sunday to consider options.
Some people continue to mercilessly oppose the adoption of Net Zero, juniors Simultaneous Partners demand new efforts to revitalize the Australian region and increase employment in return for supporting changes in climate policy.
Guardian Australia also understands that Morrison told his colleagues before Glasgow that he wanted to raise Australia’s existing 2030 emission reduction targets. New emissions forecasts coming soon exceed Australia’s current target of 26-28% reductions by 2030 compared to 2005 levels.
However, some people are openly hostile to signing up for Mid Century’s Net Zero Commitment, while others are at stake, so Morrison could take an additional step to raise its 2030 goal. It is unclear if they have the political capital they can afford.
Australia has publicly declared that it will “achieve” its 2030 goal without officially raising it, but both countries have windowdressed Morrison, sources said. Instead, he pressured to provide a formal hike.
Investors could evade Australia without Net Zero commitment in 2050, RBA warns | Reserve Bank of Australia
Source link Investors could evade Australia without Net Zero commitment in 2050, RBA warns | Reserve Bank of Australia