The Reserve Bank of Australia has warned the world is moving towards a net-zero emissions target by 2050, whether Australia likes it or not.
This comes as the Coalition remains divided over a shift in policy just one month out from the Glasgow climate change summit.
The divisions come from the cost of action, as opposed to the cost of inaction, but RBA Deputy Governor Guy Debelle says climate change is top of mind for international investment.
“Investors will adjust their portfolios in response to climate risks, governments in other districts are implementing net zero policies, both of these are effectively increasing the cost of emissions-intensive activity in Australia,” he said.
“So irrespective of whether we think these adjustments are appropriate or fair, they are happening, and we need to take account of that.”