Population ponzi overruns Australia’s emissions targets

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By Leith van Onselen

On Monday it was revealed that Australia’s carbon emissions are on the rise and the nation is on track to badly miss the scientifically based targets set by the government’s Climate Change Authority, as well as those under the Paris agreement. From The Guardian:

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Australia’s emissions jumped by 2.56m tonnes in the three months to September, putting them 1.55m tonnes off-track compared with commitments made in Paris, and 4.06m tonnes over levels demanded by scientifically based targets set by the government’s Climate Change Authority. Emissions for the year to September are above those for the year to September 2015.

The results mean Australia has emitted about twice what is allowed by the CCA’s carbon budget since 2013. In the three years and nine months to September 2016, the country emitted 19.8% of its share of what the world can emit between 2013 and 2050 if it intends to maintain a good chance of keeping warming to below 2C.

If Australia continues to emit carbon pollution at the average rate of the past year, it will spend its entire carbon budget by 2031…

The carbon budget recommended by the CCA, which it described as “equitable and feasible”, was never agreed to by the government, but represents the authority’s view of Australia’s fair share if global warming is to be kept under 2C.

While Australia’s emissions depend on many factors – including our energy use patterns and how we live – nobody can deny the fact that Australia’s high population growth (immigration) policy will make it next to impossible to meet our targets nor safeguard Australia’s environment.

As shown in the next chart, which comes from the Productivity Commission, Australia’s population will reach 40 million mid century under current immigration settings, some 13 million more than what would occur under zero net overseas migration (NOM):

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That’s a helluva lot of extra people consuming resources and emitting greenhouse gasses. It also means that Australia would need to cut its per capita emissions by around two-thirds just to keep total emissions at current levels (other things equal), let alone reduce them.

But don’t just take my word for it. In May this year, a University of Adelaide-led study entitled Implications of Australia’s Population Policy for Future Greenhouse Gas Emissions Targets noted the direct (obvious) link between population size, emissions and environmental degredation:

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It is clear from our demographic modelling and the available data on net overseas migrants that Australia’s future population is entirely contingent on its immigration policies… The current demographic state of the Australian population is such that if all net immigration were halted today, the population would stabilize by the mid-2040s and decline only slightly thereafter, achieving nearly the same population size that it is today by mid-century…

Whether Australians choose to limit their future population growth is entirely another matter. The country’s natural systems have already suffered severe degradation of ecosystems…

In this context, any policy that seeks an even larger Australian population would need to be carefully focused on how to achieve this goal sustainably, while mitigating (and, in some situations, reversing) these threatening processes. Given the rising environmental damage globally from a large and growing human population (Bradshaw & Brook 2014), Australia has the rare option to limit this damage by adjusting its immigration policies accordingly…

Based on current population policies, the projected growth in the Australian population will make its already challenging future emissions-reduction goals even more difficult to achieve. In addition to the rising pressure of Australia’s population on its ecosystems, the country’s future greenhouse gas emissions are also partially tied to its immigration policy…

With a 2020 target of 5 per cent reduction in emissions (relative to 2000), a 27 per cent reduction by 2030 (relative to 2005) and potentially an 80 per cent reduction by 2050, Australia has no credible mechanisms in place to achieve these goals… it seems unlikely that Australia will be able to achieve either of these two targets without substantial policy changes across population, energy, agriculture and environmental sectors.

Given that Australia has less than 14 years to meet the 2030 target, and less than 34 years to meet the putative 2050 target, and that a reduction in per capita emissions of 83.5 per cent would still be required even under the extreme scenario of no net migration…

Irrespective of these challenges, any increase in Australia’s population will make these targets even more difficult, such that a business-as-usual projection (scenario 1) would require a fivefold greater reduction in per capita emissions to reach a 2050 target of 80 per cent reduction compared with the zero-immigration scenario and produce ~10 per cent more emissions…

More population growth driven by immigration will hamper Australia’s ability to meet its future climate change mitigation commitments and worsen its already stressed ecosystems, unless a massive technological transformation of Australia’s energy sector is immediately forthcoming.

Again I ask: why are the Australian Greens conspicuously silent about Australia’s mass immigration program? When will they break their deafening silence and lobby to slash immigration on behalf of Australia’s environment?

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.