This report provides an economy-wide blueprint for how Australia can achieve an ambitious reduction in greenhouse gas emissions while building a growing low-carbon economy.
The report identifies 54 separate opportunities - across all sectors - that together can achieve a reduction in emissions of 249 MtCO2e (million tonnes of carbon dioxide equivalent), or 25% below 2000 levels. This target is achievable using technologies available today, and at cost of just A$185 per household in 2020.
Based on detailed economic and policy analysis, the report identifies the actions required to reduce emissions, the barriers to their implementation, and their relative cost in six key sectors – power, forestry, industry, buildings, agriculture and transport. It finds that a carbon price would further amplify the incentive for business to invest in emissions reduction, by significantly increasing the number of opportunities that are profitable to business.
But as some barriers do not respond to a price on carbon, additional action will be required to overcome those barriers.
The report also finds that prompt action is required to capture all 54 opportunities. Delaying action will mean some low cost opportunities are lost, ensuring greater cost to society and business in the long run.
The Plan was prepared by ClimateWorks Australia in conjunction with global business consultants, McKinsey & Company.