
Will Australia leave money on the table? Protecting and restoring nature: an emerging source of economic advantage
The merging of climate action and nature restoration opens a unique path for Australia towards a thriving, nature-positive economy. The question is: how will Australia respond to this call? The answer may well determine our trajectory toward sustainability, resilience, and global leadership in a rapidly changing world.
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Australia’s landscape, rich in unique biodiversity, faces a critical threat from factors like habitat loss, invasive species, resource extraction, pollution, and climate change. Australia has the highest known rates of recent species extinctions in the world, accounting for 35% of recorded mammal extinctions. One hundred ecological communities and more than 1,900 species are currently listed as vulnerable, endangered or critically endangered.
However, there is an incredible opportunity to intertwine the goals of achieving a net-zero economy and restoring nature. These aspirations are interdependent – safeguarding and reviving ecosystems is pivotal in decreasing global temperature rise, just as addressing climate change is imperative for nature's survival.
Australia's commitment to the Kunming-Montreal Global Biodiversity Framework signifies a pledge to conserve 30% of land and oceans by 2030, aligning with its global partners' sustainability agendas. Over 80% of Australia's exports rely heavily on natural resources, spanning industries such as agriculture, mining, energy, construction, and real estate.
Protecting and restoring nature emerges as an economic boon, potentially increasing national income by $47 billion by 2050, as indicated by the EY Net Zero Centre's analysis.
The analysis contemplates three scenarios (carbon focussed, balanced approach, and habitat focussed), defining how different approaches could impact carbon sequestration and habitat restoration. While Australia's current carbon-focused policies show promise in sequestering carbon, they fall short in driving habitat restoration. Vice versa the habitat-focussed approach prioritises habitat restoration but at the expense of reduced carbon sequestration. The balanced approach could yield a substantial increase in native habitat, with a slight compromise on carbon sequestration.
EY analysis findings:
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A balanced approach, while delivering over seven times more native habitat, may sacrifice 20% of carbon sequestration by 2050 compared to the current approach.
The EY analysis shows an integrated approach including markets, government intervention at the policy level, and partnerships and proactive engagement will be crucial to protect and restore our natural systems and create a more sustainable Australia.
Sources: https://assets.ey.com/content/dam/ey-sites/ey-com/en_au/noindex/ey-creating-a-nature-positive-advantage-report-final-20231121.pdf