The Business Council of Australia (BCA) supports achieving a net zero emissions economy by 2050. This paper sets out a proposed transition pathway and a set of policy recommendations to enhance coordination across governments, regulators, industry and the community to deliver economic dividends for all Australians.

This paper has been informed by Australia’s leading businesses and presents a business perspective on the most efficient and least costly pathway to achieving this goal.

The BCA believes the level of ambition and policy architecture recommended in this paper is durable and capable of attracting support from the majority of the parliament. A coordinated pathway to net zero will create new industries, new jobs and ensure Australia remains competitive on the world stage.

The transition will be underpinned by technology change and innovation, with the early years focussed on bringing forward action in easier to abate industries while incentivising investment to close the technology gap in harder to abate sectors.

It must run in tandem with the nation realising greater economy-wide productivity gains, lifting international competitiveness and improving the ability to attract investment in order to accelerate economic growth and secure Australia’s long-term prosperity. Decarbonisation is central to Australia’s economic transformation and meeting the challenges of a rapidly changing world.