Australia lags behind global green competitiveness ahead of G7 summit

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Germany, Italy and the United States will participate in the G7 Summit as global leaders in green competitiveness, while Australia will participate as the “Green Laguard”.

A report by Dr. Penny Melee of SoDa Labs at Monash Business School and Peer Andres of the Grantham Institute on Climate Change and the Environment at the London School of Economics and Politics, “Navigating the Green Transitions: G7 Insights” Science, since 1995 Shows an analysis of the green competitiveness of 11 countries and China that participated in the G7 Summit.

Germany is consistently ranked number one in the world in terms of the range and number of complex and technologically advanced green products that have been shown to be a strong driver of economic development and growth.

Italy overtook the United States in the 2000s and is now second in the world rankings. Other major countries include China, Japan and the United Kingdom.

However, Australia’s green competitiveness has declined significantly over the last two decades and is currently barely ranked in the top 100 of the 231 countries and territories rated (96th in the ranking).

Of the countries considered, Australia appears to be in the best position to competitively export environmentally friendly products. Australia is said to have only 12 “green strengths” over 59 in Canada and 153 in China.

“It’s exciting to see Australia lagging behind other countries,” said Dr. Mealy, Research Fellow and Research Associate at SoDa Labs, Monash Business School, Oxford University.

“The writing has been on the wall for some time. Demand for high-emission products is declining, and countries are now prioritizing trade in green products.”

The author performed a new analysis using a new tool, Green Transition Navigator, launched earlier this year. It is based on a survey published last year in the magazine Research Policy. Green Transition Navigator maps strengths and opportunities in the green economy of 231 countries and territories.

This tool shows each country’s Green Complexity Index (GCI), which measures both the number and complexity of green products that each country can competitively export. It also shows the Green Complexity Potential (GCP). This measures the relative ease with which a country can become more competitive with new, technologically sophisticated green products and technologies.

Australia’s existing green competitiveness includes electrical signals, safety and traffic control, and rail / tram construction materials. Demand for these can increase as investment in cleaner public transport increases.

When it comes to green potential opportunities, Australia is relatively close to most of the green products used in this analysis. Some relatively close opportunities include tamping machines and road rollers used in recycling and solid waste treatment processes.

However, the underlying data does not yet capture the “greenness” of each country’s production process. For example, Australia’s strong potential to acquire products such as “green” steel made from hydrogen rather than coal has not yet been considered.

“China has rapidly become more competitive in green products over the last two decades and is now a world leader in the export of solar cells, fuel cells, electric soil heaters and more,” said Dr. Mealy. ..

Australia, on the other hand, has seen a significant decline in green production capacity over the last two decades and is now lagging behind many countries in its ability to competitively export products related to the green economy.

“Currently, it is important for Australia to be more proactive in decarbonizing its production processes and investing in new capacity to enable prosperity in the green economy.

“Australia provides incredible funding for renewables and has considerable track record in green patents, but its global export competitiveness is now supported by coal, gas and iron ore. . “

“Our analysis shows that Germany has consistently maintained its position as a’green leader’, followed by Italy and the United States. These countries are now It has the capacity to competitively export a wide range of “complex” or technologically sophisticated green products.

“The competitiveness of green products allows countries to take advantage of the green transition, but the competitiveness of more complex products is also important, which strengthens the country’s overall economic growth and diversification outlook. Is shown. “

Climate change and the transition to net zero have been at the forefront of policy agendas in many countries in recent years and are expected to be an important debate at the 2021 G7 Summit.

The analysis presented in Green Transition Navigator and this report is based on a previous study by Mealy and Teytelboym (2020). ..

Dataset Green products The technology mentioned in this report is based on the compilation of the APEC, OECD, and WTO Green Commodity Classifications. Country-level trade data CEPII BACI database (Gaulier and Zignago, 2010). To avoid distorting measurements due to short-term trade fluctuations, the analysis is based on an annual average of transaction values ​​over the five years from 1995 to 1999 to 2015 to 2019 (time range shown). If not, the data is for the latest period from 2015 to 2019).

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Australia lags behind global green competitiveness ahead of G7 summit

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