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Asia Pacific’s turning point

How climate action can drive our economic future

Decisions need to be made in the next decade to combat the worst impacts of climate change and accelerate economic growth.

Time is running out to act on climate change. But rather than climate action being a drain on our economy, our report shows it will significantly boost GDP and accelerate phenomenal growth in both Australia and Asia Pacific as a whole.

Australia stands to benefit from a US$47 trillion prize in Asia Pacific, our economic modelling reveals. But it’s only if the region decarbonises at pace and scale to prevent a US$96 trillion loss in the next 50 years.

With decarbonisation acting as a new economic engine, Asia Pacific and Australia play a key role in providing the skills, technology, innovation, and finance for this global transformation. There is a window of opportunity to lead the way by seeing climate action not as a cost, but an extraordinary possibility for growth in Australia and the region.

But we can only achieve this if we work together and act now - we are at a turning point.

Asia Pacific's turning point

The cost of inaction

The cost of doing nothing is economically devastating

US$2 trillion lost from the economies of Australia and New Zealand by 2070. Across Asia Pacific, this impact is magnified, equating to a US$96 trillion loss for our region.

We have much to lose from inaction

30% of employed Australians and more than 30% of national income sits in industries exposed to climate disruption and unplanned economic transition.

We have a narrow window of time to change the future.

We stand to benefit

US$47 trillion added to Asia Pacific’s economy by 2070

Australia stands to benefit from a US$47 trillion prize in Asia Pacific if the region decarbonises at pace and scale in the next 50 years, with Australia and New Zealand gaining US$860 billion.

Asia Pacific is home to around half the global workforce and many enterprises are already world-leading producers of the advanced solutions needed to address climate change, such as solar panels and electric vehicles.

The fight for climate change will be won or lost in Asia

We have much to gain from action

Given Asia Pacific’s large share of the global population and emissions, climate vulnerabilities, and technological and financial strengths, Deloitte’s research shows the global fight against climate change will be won or lost in Asia Pacific.

Through concerted and coordinated action over the next decade, the Asia Pacific region can transform the underlying production systems of our economy, through technology and finance, and by exporting decarbonisation globally.

Four phases will shape our economic and climatic future

2021 - 2025 - Asia Pacific bold climate plays: Nations and businesses start making bold decisions which begin to impact decarbonisation.

2025 - 2035 - Coordinated change: Big economic shifts occur in policy, energy, and consumers.

2035 - 2050 - Turning point: Decarbonisation of high-emission industries is almost complete. Costs of sustainable technologies start decreasing and there are wider net economic gains.

2050 onwards - A low-emission future: Radical transformation of economic structure. Economies of Asia Pacific are near net zero emissions and operate in a world that keeps global warming to around 1.5°C.


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