Experts at IMARC 2024 Warn Urgent Action Is Needed in Australia
Australia has the potential to be a green energy and metals superpower. However, experts at IMARC 2024 warned that the country is falling behind.
McKinsey & Company partner Victor Finkel called Australia a “latent force” that must act fast to secure its future. He said, “Complacency is the enemy here. This is a latent competitive advantage we can turn into something real, but it is certainly not a given.”
Australia’s economy is heavily reliant on fossil fuel-linked exports, such as iron ore, coal, and natural gas. Transitioning to green metals and renewable energy is crucial. Finkel stressed, “Regardless of the speed at which Australia transitions, our trading partners are also transitioning.”
China Surges Ahead, Australia Lags
Experts compared Australia’s progress to China’s rapid advancements in renewable energy. Tim Buckley, CEO of Climate Energy Finance, stated, “China installs 24 gigawatts of wind and solar every month. That’s what they did last month. That’s what they’ve done on average in the last 20 months. We do about six gigs a year.”
Buckley emphasized Australia’s potential, saying, “We do have the potential to be a renewable energy superpower, and mining is going to be how we get that.”
However, rising energy costs, complex regulations, and slow grid development are hurting Australia’s competitiveness. Orica CEO Sanjeev Gandhi highlighted the struggles, saying, “The cost of electricity has gone up twofold. The cost of gas has gone up fourfold. Labour costs are going up. Productivity is down.”
Energy and Policies Key to Success
Marghanita Johnson, CEO of The Australian Aluminium Council, said energy is the foundation of Australia’s green future. “Australia no longer has that historic advantage. That is very clear,” she said.
Johnson outlined three key needs: internationally competitive energy, access to affordable capital, and streamlined environmental approvals. She added, “We’ve been making green metal in Tasmania for nearly 70 years and hope to be making it for many more.”
Buckley agreed, saying, “We’ve actually got the Capacity Investment Scheme. Let’s use what we’ve got. It’s all about Team Australia.”
Government Leadership Is Critical
Experts urged the government to take a leadership role in the transition. Buckley proposed using subsidies strategically. “The government has to underwrite the first one, the second one. Then get out of the way. And the next 47 will be done by private industry,” he said.
Finkel stressed the importance of moving quickly. “We can’t build a competitive industry reliant on subsidies forever,” he said.
Australia is at a critical crossroads. Acting now could secure its place as a leader in the global green economy. Failure to act could cost billions in lost exports and opportunities.