Via Damien Boey at Credit Suisse:
Overnight, RBA Deputy Governor Debelle delivered a speech about climate change, and its implications for economic policy.
Some key points are as follows:
- Climate change affects the agricultural sector of the economy. While agriculture is becoming less significant from a GDP perspective, food prices are still a major driver of CPI inflation.
- Increased renewable energy spending is a trend that is likely to occur across private and public sector spaces.
- Climate change in China will shape the demand for Australian liquefied natural gas (LNG) exports as a cleaner alternative to coal.
