This report puts Australian climate policy in the context of ongoing international action to address climate change.
- Megatrends towards greater international action on climate change continue but at an insufficient pace. For example, weighted average effective carbon prices on energy in OECD countries are currently PPP* $34 per tonne and global clean energy investments, particularly in Asia, remain high and reached $US270 billion in 2012. However, even with current commitments, the world is still on the path to a global temperature rise of 3-4°C, well beyond the risky “guardrail” of 2°C.
- Countries differ in their ability to prosper in a world moving to limit pollution. The Climate Institute/GE Low-Carbon Competitiveness Index indicates that France, Japan, China, South Korea and the United Kingdom are currently best positioned to prosper in the global low-carbon economy.
- Since the previous update of the Low-Carbon Competitiveness Index, China has leapt ahead and the United States has begun to fall behind. China’s dramatic rise up the Index is the result not only of its major investment in clean energy, but also growth in its high technology exports. China hosted just under half of total global public equity investment in clean energy.
- Australia has seen a fragile reversal of its score on the Low-Carbon Competitiveness Index. However, Indonesia improved more to overtake Australia, which is now 17th in the G20. The data does not, however, include the impacts of the recently implemented Clean Energy Future package.