EXECUTIVE SUMMARY

Australia, and the world, face unprecedented environmental challenges demanding urgent action: the threat of climate change, pollution and resource constraints. But these challenges create opportunities. Environmental solutions such as renewable energy, sustainable water technologies and innovative ways of designing buildings and products are generating economic activity. How Australian governments choose to respond to these challenges and opportunities will have a dramatic effect on the profile of Australia’s future workforce.

With the right policy settings, six market sectors currently valued at $US15.5 billion and employing 112,000 people could grow by 2030 to a value of $243 billion and 847,000 jobs. Australia’s best bets in the future green economy

1. Green markets and industries, rapidly evolving globally in response to climate change and other environmental challenges, have significant potential for Australian businesses. Overall, global green markets are projected to double from $US1.4 trillion per year today to $US2.7 trillion by 2020.

2. Based on analysis of 30 green industries globally, Australian businesses are particularly well positioned to succeed in the following six key markets:
• Renewable energy
• Energy efficiency
• Sustainable water systems
• Biomaterials
• Green buildings
• Waste and recycling

3. Government policy that creates strong market demand and pathways for industry development can make the difference between lacklustre performance and Australian global leadership in each of these markets.

4. In these six key industries, the creation of strong domestic markets supported by strong climate change and other policies could result in an additional 500,000 jobs in Australia by 2030 above a business-as-usual baseline.

5. Inadequate domestic market demand and a failure to address skills and training bottlenecks could result in Australian green businesses moving overseas.

6. There is a strong congruity of views among green industry stakeholders about the measures required for Australia to succeed in accessing global green markets. These views form the basis of the reports recommendations.