Commonwealth Scientific and Industrial Research Organisation (CSIRO) has found that an ambitious global action to reduce carbon emissions has the potential to provide a “win-win” outcome in Australia’s environment and economy. A strong climate action by the government would lead to a stronger economic growth, lower emissions and a better environment without causing major changes on the lifestyle of Australians.

The new groundbreaking modelling by the CSIRO focuses on the domestic benefits from greenhouse emissions reductions. The study shows that carbon storage through reforestation and other land use has turned into a more profitable revenue earner compared with existing farming methods.

Storing carbon provides income for Australians more than beef and other agricultural production across the country, which results in win-win outcomes for the country aiming for a stronger action to reduce emissions, according to the CSIRO Australian National Outlook paper.

The authors said in the paper, published in the international journal Nature, that “stronger abatement incentives also promote electrification and the use of biofuels in road transport, reducing oil imports.”

These economic gains from carbon reduction and storage could exceed the costs of more strict national emissions targets and the impacts of lower global demand for the emissions-intensive exports of the country. It is also relative to moderate national and global abatement, they added.

The study highlights that the push for much stronger global climate action and building a more effective carbon price will depend on the best interests of Australia. The choices of the federal government will promote the biggest difference. Thus, Australia will be able to combine strong growth and environment performance without pushing its citizens to make a major shift on their attitudes to consumerism.

The modelling from the CSIRO considers different scenarios since Australia started having higher carbon prices. These include a moderately ambitious scenario with a carbon price of US$15 (AU$20) per tonne in 2015, a strong scenario with a starting carbon price of US$30 (AU$41) per tonne and a very strong scenario with the starting price of US$50 (AU$69).

“Across all scenarios analysed, we found that those scenarios where Australia and the world take stronger action to reduce greenhouse gas emissions show higher long-term economic growth and better environmental outcomes compared to scenarios that continue current trends,” the researchers said.

Australia would experience the win-win outcome when the government policy opens emissions reductions in all sectors, including electricity, transport and industrial emissions which can deliver 40 to 75 percent of cost-effective national abatement by 2050. The study added that land-based carbon storage would also provide 30 to 40 percent total abatement under the strong and very strong scenarios.

Carbon storage would also lead reforestation to be more attractive with an effective carbon price of US$40 (AU$55) to US$60 (AU$83) by 2020 under the very strong scenario and before 2030 in the strong scenario. The researchers noted that “stable and predictable policy settings are also required, as to be effective in reducing emissions carbon plantings must be maintained for a 100 years or more.”

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