To that end, the Australian federal government has called a national productivity roundtable, seeking to remedy the country’s sliding productivity. This pilot, championed by Treasurer Jim Chalmers, aims to find breakthrough ideas to improve economic performance. Climate change is an everyday consideration in decision-making. As independent MP Zali Steggall wrote recently about its damaging effects on the economy and federal budget.
Steggall pointed to the example of recent disasters, especially this year’s record-breaking floods in New South Wales and Queensland. She highlighted the current algal bloom in South Australia, arguing that these occurrences are direct impacts of climate change that destroy productivity and prevent economic growth. She noted the time-critical need to start wrapping climate resilience into the conversation about productivity. Without this central focus, she cautioned, any economic plan would be dead on arrival.
“Let’s be really clear, as soon as climate risk hits, productivity is down to zero. You can’t really talk about a strong future Australian economy without the resilience piece underpinning everything.” – Zali Steggall
Addressing Regulatory Roadblocks
In her official visit, Steggall called for a fundamental overhaul of current rules. These regulations directly prevent renters, landlords, apartment owners and strata companies from implementing renewable energy and energy efficient technologies. She is committed to working to remove these barriers in order to help foster a more sustainable, inclusive and productive economy.
Steggall recently confirmed that she will be reintroducing her proposals next month. They’ll feature industry reps, union bosses, community activists and other politicians. She recommends capping tax expenditures for rental units. This would mean ending negative gearing on properties that fail to meet minimum energy standards.
“We need to look at some of the regulatory roadblocks — it’s not just about subsidies, it is sometimes that the regulations don’t permit.” – Zali Steggall
She called for an update to the National Construction Code to ensure new buildings are energy-efficient and resilient to climate change impacts. This is a crucial step for ensuring Australia is equipped to deal with ongoing and worsening climate impacts while improving productivity throughout the built environment.
Economic Incentives and Emission Pricing
Now, the Australian government has put some serious financial skin in the game to drive Australian homeowners to energy-efficient technologies. Federal and state governments have together invested billions in incentives to encourage Americans to install more rooftop solar and use more batteries. And we have seen the Federal Labor’s election promise of a $3 billion subsidy specifically aimed at household batteries.
Steggall further proposed that Australia introduce a fossil fuel export levy aligned with the effective emissions price under the safeguard mechanism. This mechanism requires that the largest, most-costly-to-reduce, polluting industries curtail their emissions at a steady pace over time. Yet, as designed, it doesn’t count emissions from products they export for consumption abroad.
“The whole point is Australia has a huge opportunity to grow industries that we have struggled with traditionally, like steel, because we can make clean and green steel.” – Emma Aisbett
Steggall argued that instead of allowing emissions price revenue to be collected abroad, Australia should capitalize on this opportunity by implementing an emissions price on exported fossil fuels. She focused on the need to be proactive rather than reactive and adapt to changes in global trends. She noted that other regions have already begun the process of implementing stricter emissions standards.
“The EU’s is due to come into effect in 2026, other jurisdictions in 2027, so it’s not like this is something that’s not happening around the world … we don’t have the luxury of time.” – Zali Steggall
Skepticism About Government Intentions
Steggall is keen to see climate resilience addressed as part of the productivity agenda. She has reservations about how the government is planning to go about this next roundtable. She expressed fears that an agenda set in stone would stifle authentic conversation and creativity.
“I hope this is not a situation where they have got a policy setting they want to go in and they’re reverse-engineering a roundtable to suit their purposes.” – Zali Steggall
She emphasized the importance of approaching this key topic in a forward-looking way. She called on the government to take the opportunity now, while it has its strong majority, to make real lasting change during this mandate.
“I certainly hope the treasurer and the prime minister look at this term of government with their big majority to genuinely be change makers.” – Zali Steggall
