Accounting bodies band together to bolster Aussie climate goals

CA ANZ, CPA Australia, and the Institute of Public Accountants (IPA) have endorsed Australia’s bipartisan commitment to the Paris Agreement goals.

The joint bodies called on all levels of government to continue to support the country’s transition to a clean, competitive, resilient and prosperous net-zero economy.

In a joint statement from the accounting bodies and additional signatories, it was noted that joint support and acting to limit climate change and its impacts made “good financial sense.”

Data from the world’s central banks’ mid-range estimated global GDP would be 7 per cent higher in 2050 if emissions fell steadily to net zero, if climate policies remained unchanged.

The bodies noted this could be even higher as actuaries suggested the range of credible estimates included a global GDP benefit of 25 per cent by 2050 and 50 per cent by 2090.

“Globally, the past 10 years were the 10 hottest on record. The physical effects of climate change are already evident here and around the world, underscoring the urgency of action,” the bodies said.

“Australia has made important progress on its climate response. Net zero targets are in place, emissions are falling, work is underway to assess and manage climate impacts, and business confidence is benefitting from a more cooperative approach across all levels of government.”

Last year, global investment in the net zero transition reached $3.3 trillion, 20 per cent more than Australia’s GDP.

As Australia continued to compete globally for capital, a credible net-zero plan was needed, along with an “ambitious and deliverable” 2035 nationally determined contribution and comprehensive policies to capture Australia’s share of the investment opportunity, the statement said.

In addition to CA ANZ, CPA Australia and IPA, other signatories included Ai Group, Australian Sustainable Finance Institute, Clean Energy Investor Group, Financial Services Council, Governance Institute of Australia, Investor Group on Climate Change, Principles for Responsible Investment, Property Council of Australia and Responsible Investment Associated of Australasia.

The joint accounting bodies said Australia had established solid policy foundations such as the Safeguard Mechanism, climate-related disclosures, plans for adaptation and resilience, and policies to steadily and responsibly decarbonise our energy sources.

“Maintaining these policies – while evolving them to be as efficient and competitive as possible – will give business and finance the confidence to invest here for the long term, supporting a strong economy and a better future for all Australians.”

“Australia’s business and finance sectors are pressing ahead with the task of managing climate risks, planning for new opportunities, and investing for the future. But the private sector cannot act alone.”