NAB News

Climate change is a defining issue of our time. New research commissioned by NAB reveals the economic opportunity in Australia’s transition to a net-zero economy.

The research report ‘All Systems Go’ by Deloitte Access Economics, finds about $20 trillion will be invested in Australia’s economy by 2050, regardless of whether Australia transitions to net zero.

However, to achieve net zero, this $20 trillion will need to be spent differently and the Australian economy must be structurally different to ensure the nation is best-placed to emerge as a standout economy in a low emissions world.

This includes $420 billion in additional new investment by 2050, alongside $70 billion that must move from emissions intensive activity by 2030 into low emissions activity to make the structural changes necessary and avoid driving up the cost of the transition.

In the report, NAB Chairman Philip Chronican acknowledges the size of the challenge. “The scale of action needed is far broader than the Industrial Revolution, and yet the timeline is roughly half,” he writes.

Yet if Australia is too slow to move, or fails to act, Australia’s economy may falter, he warns.

NAB’s role

NAB is taking action and recognises the impact climate change is having and will have in the future on the environment, communities and businesses. Taking action makes good business sense.

Backing innovators

NAB is funding customers who have developed innovative technologies that help to address climate change.

For example agricultural firm and NAB customer Agrimix has developed a new legume pasture with researchers from James Cook University. The drought-resistant pasture can help greenhouse gas mitigation by drawing more carbon out of the atmosphere and storing it in the ground. Research also suggests it can reduce the methane production from cattle, sheep and goats.

Supporting the transition

The All Systems Go report shows that Australia needs to focus on four key segments which play a key role in our lives and our economy if Australia is to achieve net zero by 2050. There needs to be co-ordinated action across energy, raw materials manufacturing, mobility and food and land use – which account for about 90% of Australia’s carbon emissions.

NAB is providing finance to help customers make emissions reductions.

For example, 1.8 billion tonnes of steel is manufactured globally each year and is expected to grow by as much as a third by 2050. It is one of the hard-to-abate industries vital for the global economy that will need significant technology breakthroughs and investment to achieve a low-emission transition.

Bluescope Steel believes investment in renewables, infrastructure, renewable energy storage and research and development will be critical to meet its net zero target. NAB can play a role in funding crucial investment.

Climate and community

Australians are facing more frequent and intense natural disasters as a result of climate change. NAB is supporting customers, colleagues and communities to prepare, respond and recover from natural disasters through our  NAB Ready Together program.

NAB has taken other action too

Back in 2010, NAB became Australia’s first carbon-neutral bank. NAB is also the leading Australian bank provider of project finance to the global renewables segment.

The bank is ranked within 100 Most Sustainable Corporations globally and ranked in top 10 global issuers of bonds addressing climate change.

There is more to do.

NAB CEO Ross McEwan said NAB would continue working closely with its customers and colleagues to transition to a low carbon future.

You can find out more about NAB and what we are doing to tackle climate change here.

You can read more NAB News articles related to climate change and Australia’s transition to a low carbon economy here.