Maria Kovacic (NSW, Liberal Party) Share this | Link to this | Hansard source

Late last year I had the privilege to join many of my state and federal parliamentary colleagues on a delegation to Dubai for COP28 with Environmental Leadership Australia. The trip was a reminder of the challenges of climate change, how they are absolutely a global effort and how the transition away from fossil fuels to renewables is underway. But what becomes abundantly clear with the information and the learnings from that trip is that it is also a commercial imperative, an economic opportunity. It is important to note that it was under the previous Liberal government that Australia committed to reaching net zero by 2050. We joined 140 other nations such as the UK, the US, China and India in the efforts to reduce emissions. This coalition of nations accounts for about 92 per cent of global GDP.

As we know, momentum is growing and investment in renewable energy now outpaces investment in fossil fuels. Some 40 per cent of new global capital is being invested in renewables. This is a free market decision. In fact, global investment in the low-carbon energy transition surged 17 per cent in 2023, reaching $1.77 trillion, according to Energy transition investment trends 2024. This is equal to Australia's GDP. As I and my colleagues discovered, the transition to renewables offers a huge economic opportunity for our country. According to BloombergNEF's New energy outlook: Australia report, in May 2023 Australia's transition to net zero alone represents an investment opportunity of US$1.9 trillion by 2050.

By fostering renewable and low-carbon industries, Australia has an opportunity to revitalise its manufacturing industry. We could do this by properly taking advantage of our huge renewable resources such as our abundance of sunlight and off- and onshore wind resources. One stakeholder in Dubai noted to us that we had an unmatched potential to be the global leader in renewable innovation and investment. We shouldn't be afraid to look at these opportunities for our country. With our wealth of clean energy alongside our critical mineral reserves, we could establish a world-leading battery manufacturing industry, which, according to Beyond Zero Emissions, could create 44,000 jobs and $57 billion in GDP in 2035.

We have a nation-building opportunity to insert ourselves into clean energy supply chains, especially with critical minerals. Our critical minerals sector is constantly growing in response to the increasing global need for a secure supply of these vital and strategic resources. Australia's identified mineral resources 2023 shows that, in 2022, Australia retained its position as the world's top lithium producer, with 52 per cent, and was also a top five producer for cobalt, at three per cent; manganese ore, at 10 per cent; rare earths, at five per cent; rutile, at 27 per cent; tantalum, at four per cent; and zircon, at 25 per cent. As well as being a global leader in the supply of critical minerals, many other deposits have been discovered and are under development—again creating opportunity.

Critical minerals, alongside new industries such as green hydrogen, offer export opportunities, especially when considering that 85 per cent of our exports in 2021 went to countries that have net zero targets. The opportunities decarbonisation offers is especially true in rural and regional Australia, but they shouldn't continue to carry the entire burden of our transition to net zero. Cities must be built to be more climate resistant, and we must find ways to generate energy within our cities.

Australia has the opportunity to be an energy powerhouse. We need to get on with it and make the most of this opportunity with benefits to our environment, our economy and the prosperity of Australians.