The Federal Government’s 2010 Intergenerational Report highlights the crucial need to act now towards a sustainable future, the Australian Conservation Foundation (ACF) said today.
“While Federal Treasurer Wayne Swan rightly acknowledged that climate change is one of the most significant challenges to economic sustainability, the long-term budgetary implications of environmental loss must be made clear,” said ACF Director of Strategic Ideas, Chuck Berger.
“ACF projects that resource depletion, land degradation, exotic species, greenhouse pollution and fossil fuel subsidies will cost Australia over $1 trillion dollars by 2050, unless we act now to avoid these losses,” said Mr Berger.
The projections are based on ABS statistics released last week, including the following:
Resource depletion: $4 billion per year
Cumulative cost to 2050: $160 billion
Land degradation: $395 million per year
Cumulative cost to 2050: $15.8 billion
Exotic species: $1.57 billion per year
Cumulative cost to 2050: $62 billion
In addition, greenhouse pollution is costing us $18 billion per year already, based on the $31/tonne cost of carbon used by the Australian Academy of Technological Sciences and Engineering (ATSE). Unless pollution is reduced, climate change will cost at least $720 billion through to 2050.
Further, the cumulative cost through to 2050 of Commonwealth budget revenue foregone on fossil fuel subsidies is at last count $212 billion ($5.3 billion per year). That includes money spent on FBT concessions for company cars, fuel rebates to mining and transport companies, depreciation rorts for aircraft and oil and gas machinery, and low tax rates for aviation fuels.
ACF further rejected the suggestion that population growth is needed to care for an ageing population. “Many other countries enjoy thriving economies with stable populations. This should be Australia’s aspiration as well,” said Mr Berger.
