“We’re not throwing money at crazy stuff:” Australia’s low appetite for risk a roadblock to green industry

Global momentum behind decarbonisation is unlikely to be unwound by the United States withdrawing from the international climate pact, the head of the federal Climate Change Authority says.

Matt Kean, a former NSW Liberal energy minister and treasurer, says climate action held up under the previous Donald Trump presidency and the same could be expected in his second term. 

“Some might look at geopolitical developments and say, ‘why bother?'” he said at the Impact X Sydney Summit, a flagship event of the city-wide Climate Action Week organisers hope will help spur on the net zero transition.

“Hasn’t President Trump promised to pull the US out of the Paris Agreement on climate again, repeating his 2017 action?

“The US didn’t stop the world’s climate momentum back then, and it’s unlikely to halt it now.”

He was referring to an accelerating global renewables rollout, with 600 gigawatts of solar installed worldwide in 2024, up from 100 gigawatts in 2017. Electric vehicle uptake was also gathering pace.

“There is growing tide of investment now flowing into the clean economy,” he said.

“And where there is more investment, there is more research and innovation.”

National Reconstruction Fund chair Martijn Wilder said government support was playing a key role in supporting Australia’s emerging low-carbon industries.

The federal government set up the $15 billion fund to kickstart new industries and funnel finance into priority areas, including low-emissions technology, resources and agriculture.

Mr Wilder said Australia could be doing more to fully understand its comparative advantages.

“It’s a bit ad hoc,” he said, calling for a strategic approach to identify industries the nation is best-placed to pursue.

“Is the med-tech sector one we can have a real leadership on?

“And the decarbonised industrial sectors?”

Australia’s low appetite for risk, particularly when it comes to government money, was another roadblock to economic innovation.

“We’re not throwing money at crazy stuff, but you still have to really back things that could be game-changing and if they fail, so be it,” Mr Wilder said.

Aboriginal and Torres Strait Islander Social Justice Commissioner Katie Kiss said First Nations people were experiencing the impacts of climate change despite having small carbon footprints.

“Sea levels are rising faster than the global average, causing changes to coastal tides, which is impacting local habitat, food sources, language and cultural practices,” the Kaanju and Birri/Widi woman said.

“Homes have had to be relocated.

“Most disturbingly for those communities, the graves of their loved ones are being submerged and inundated.”

She said Indigenous knowledge of caring for Country would be invaluable throughout the shift away from fossil fuels.

“This transformation will require leadership and political will, and must be underpinned by human rights principles.”

Mr Wilder said Australia could be doing more to fully understand its comparative advantages.

“It’s a bit ad hoc,” he said, calling for a strategic approach to identify industries the nation is best-placed to pursue.

“Is the med-tech sector one we can have a real leadership on?

“And the decarbonised industrial sectors?”

Australia’s low appetite for risk, particularly when it comes to government money, was another roadblock to economic innovation.

“We’re not throwing money at crazy stuff, but you still have to really back things that could be game-changing and if they fail, so be it,” Mr Wilder said.

Aboriginal and Torres Strait Islander Social Justice Commissioner Katie Kiss said First Nations people were experiencing the impacts of climate change despite having small carbon footprints.

“Sea levels are rising faster than the global average, causing changes to coastal tides, which is impacting local habitat, food sources, language and cultural practices,” the Kaanju and Birri/Widi woman said.

“Homes have had to be relocated.

“Most disturbingly for those communities, the graves of their loved ones are being submerged and inundated.”

She said Indigenous knowledge of caring for Country would be invaluable throughout the shift away from fossil fuels.

“This transformation will require leadership and political will, and must be underpinned by human rights principles.”

AAP