There are certainly challenges involved in transitioning to a low carbon economy, but many exceptional opportunities also. We can make Australia more energy efficient, build new industry and safeguard our natural assets. Tens of thousands of ‘green’ jobs will be created.

Good news for jobs
A recent CSIRO report (2008) found around 2.5 - 3.3 million jobs will be created in Australia by 2025, even though we would be making the transition to a low carbon economy. This includes the creation of jobs in the next ten years of at least 33,000 jobs in manufacturing, 77,000 jobs in transport, and 145,000 jobs in construction.

There will be new jobs in the design and construction of energy and water efficient buildings and infrastructure, renovations and retrofits, and the installation and maintenance of efficient appliances and machinery. With emissions trading, our skilled services sector is set to capitalise on the new green focus in financial services, supply chain management, building services, transport and logistics.

Taking advantage of these opportunities will require us to establish incentives for environmental performance; provide green skills and training; and promote a strong innovation culture. With these new capacities we will also create export industries.

Good news for households
Climate policies like the emissions trading scheme have the potential to increase energy bills, however if you use energy in a smarter way and reduce your greenhouse emission - then your bills could be lower than they are today. Energy efficiency is the quickest and cheapest way to cut greenhouse pollution – particularly in the next 10 years. Energy consumption could be cut by 30% using cost effective, off the shelf technologies with an average payback time of just four years. There will also be moves for much more fuel efficient motor vehicles, helping defray increased petrol costs.

A recent joint report by the Australian Council of Social Services, Choice and Australian Conservation Foundation found that in 2030, at a carbon price of $50/tonne, an energy efficient household would still be $200/year better off than a ‘business as usual’ household that didn’t have to pay for carbon emissions. The energy savings for the efficient household would clearly outweigh the increased cost.

The emissions trading scheme will also generate revenue from the auctioning of permits. A significant portion of revenue should be set aside to help reduce the impact of the scheme on Australian households, particularly on low-income households. Programs should include energy efficiency measures and adjustment assistance for workers and communities.

Saving our natural tourist assets
Combating climate change means we can safeguard our great natural assets such as the Barrier Reef, which are the foundation of a massive tourism industry and support regional economies. While an emissions trading scheme will adversely affect the old industries like polluting power (and there will be a need for restructuring), we are also protecting economic activities that employ far more people across Australia.