The road map to net zero
Creating a low-carbon and efficient economy is a challenge Australians need to take on together. At home, at work and in government, it’s about the right investments and smartest ideas.
Australia’s commitment to achieving a net-zero economy by 2050 creates enormous opportunities for local innovation. But carbon neutrality also presents formidable challenges, not least of which is investment. McKinsey* estimates that to hit global net-zero goals, about US$9.2 trillion needs to be spent annually on transforming assets, technologies and processes.
“We need to convert that big-picture aspiration into clear steps we can all take today,” says Sally Reid, Commonwealth Bank of Australia’s executive general manager of global client solutions. “CBA has identified five areas through which we can support government, business, industry and individual customers in really moving the dial.”
Greening the grid is a priority. Government data confirms that in 2021 nearly 24 per cent of the country’s electricity was renewably generated but now it’s time for everyone to get on board. Helping finance solutions, such as solar panels, batteries to store solar energy and other utility-scale infrastructure, will be crucial.
“But investment in low-cost renewables can really only pay dividends if we’re able to use that cheap green power to drive the things we all use every day,” says Reid.
Electrifying everything, from the buses we ride to work to warehouse forklifts and industrial trucks, has to go hand-in-hand with renewable energy.
Modernising machinery has upsides for productivity as well as the climate. But it’s not just big industrial machinery that we need to focus on. Smart household appliances that switch on when solar energy is plentiful will be just as important as tech such as office elevator banks that scale back operations when foot traffic is reduced.
Partnering with agriculture – a sector that’s on the frontline of global warming impacts – is a focus for CBA. “Regional and agribusiness clients report an immense demand for sustainably produced products and we see our role as supporting them with sustainable finance products.”
Carbon footprint measurement is ripe for development. CBA has partnered with fintech startup CoGo to provide customers with a personalised carbon footprint. “It’s critical for all of us to reliably measure our carbon footprint and make informed decisions on how we decarbonise.”
Offsetting emissions is the last piece of the puzzle. “That’s why CBA has partnered with commodities marketplace Xpansiv to help establish a transparent carbon-credit market for Australia. We want to assist everyone’s participation – from individuals to government – in working towards net zero. It’s a goal we all need to get behind together.”
See how CBA is supporting Australia’s transition to a brighter future at commbank.com.au/sustainablefinance