New research has identified an opportunity for Australia to capture a share a growing trillion dollar market and ease the economic transition from the mining investment boom.
According to the Future Business Council, demand for environmentally sustainable products and services is booming. In order to capitalise on the once in a generation economic opportunity and the meet the explosion in demand, reforms are needed to support the growth of new industries.
“Australia has a once in a generation chance to become one of the world’s leading producers of clean goods and services. This is the tech boom of the twenty-first century,” said Tom Quinn, Executive Director, Future Business Council.
The trend is far greater than solar panels on roof tops. On average, sales of hybrid vehicles have been increasing by 165 per cent per year, certifications of Green Star rated buildings by 116 per cent per year, and the issuance of climate bonds has doubled. That’s just the start of the story though.
The next boom is transforming the entire economy, spanning all sectors from: agriculture to buildings, and energy to manufacturing. The results are striking and represent a significant new economic growth story.
Three factors are driving the rapid increase in demand: consumer preference, government policies and environmental necessity.
One, a strong consumer preference for better and cleaner products is driving demand. “The phenomenal growth in demand for Fairtrade products, electric vehicles, green buildings and climate bonds is unprecedented and we expect it to continue to increase,” Mr Quinn said.
Two, government policies are driving whole of system changes, creating new industries and mandating the phase out of below-standard products. “The boom in demand for solar, LED and compact fluorescent lighting, and water efficient products – from toilets to taps – is a direct consequence of government actions. We want to see more of this” Mr Quinn said.
Three environmental necessity due to scarcity of resources like water and raw materials is driving the increasing demand for sustainable products. “Environmental pressures have spurred enormous improvements in agricultural water efficiency, recycling rates and steel production,” Mr Quinn said.
“The Australian economy can, and should, prosper from the boom in demand for sustainable products and services, but the rest of the world is moving fast to seize the lead.
“Government at all levels in Australia have a role to play. Regulatory inconsistency and policies that protect old business models are hampering innovation and strangling new investment. Outdated policies are costing Australia the ability to prosper from the next boom.
“Smart reforms are needed to give local industry a competitive advantage and support businesses competing for a share of the next boom. We need to position “Made in Australia” as the global mark of sustainability excellence.
“The window to capitalise on this boom is closing fast. Australia must move quickly to secure a lead,” Mr Quinn said.
For further information contact:
Tom Quinn, Executive Director
Future Business Council|
Mobile 0400 515 726 | tom.quinn@futurebusinesscouncil.com
The Next Boom will be launched 8am, Tuesday 27 October 2015 at the Wheeler Centre, Melbourne.
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