Reserve Bank of Australia calls for better Climate Policies

Philip Lowe, Governor of the Reserve Bank of Australia, used a speech at Australia-Canada economic leadership forum on 13 February to observe that the Reserve Bank was paying attention to the financial implications of Climate Change.

We have a responsibility to understand the economic and the financial implication of climate change.

He said: 

"The economic implications are profound."

"The world is getting hotter and the climate is more variable. We're seeing already in Australia, perhaps more than anywhere else in the world, the effects of that."

"Climate change is affecting the nature of production in Australia, the nature of investment, ultimately the nature of our exports. At the moment, I think it's affecting confidence of people and therefore ultimately spending." 

He called for greater policy certainty.

The policy uncertainty is problematic. There's been very substantial investment in renewables in Australia. We have fantastic opportunities there to reshape our energy production system ... but it would be enhanced with greater policy certainty.

He's being polite. 

Investment in renewables collapsed by more than 50 per cent in 2019, according to the Australian Financial Review. This is blamed on mounting regulatory risks, under-investment in transmission, and policy uncertainty. All these problems are caused by government recalcitrance and ineptitude.

We need strong government leadership to set a framework for reducing greenhouse gas emissions over the longer term. Within this framework, consistent policy support will guide ongoing investment in clean energy. The legislation proposed by Zali Steggall provides exactly this policy certainty.

The Morrison government should listen to the Reserve Bank, and all the other voices calling for greater policy certainty. If they don't, the 'lost decade' will become the 'lost 20 years' - and that's a whole generation.

I encourage you to contact your MP or Senators and urge them to support the legislation proposed by Zali Steggall. 

What to write

We encourage you to write to your MP and your senators. Send an email, or put a letter in the mail. We hear that handwritten letters carry a lot of weight.

What to say? I just throw my thoughts down as they come. Then I re-read and edit. I usually pull back on the ferocity of my feelings. And I usually try to include a reference to current news or data from a reputable source - especially the government's own data.

Here's what I wrote by email to Paul Fletcher this week.

Dear Mr Fletcher,

As my MP, I expect you to promote and support evidence-based policy.

This is especially important with respect to climate policy. Your government has given us ‘the lost decade’ in climate policy. I hold you personally responsible because your voting record on climate issues is abysmal.

Now, that can change.

I expect you to support the Zali Steggall bill, because it is vitally important and because it is based on the best evidence.

If you DON’T vote for it, I will want to know why. I will want to see a STRONGER bill proposed by the government before June. 

It is increasingly clear who are the hostage-takers in your government- a handful of right-wing idiots who hold the rest of you to ransom. 

Your government will go down in history as the most incompetent, corrupt government in Australian history. I hope you blush every week at the antics of your colleagues. YOU will be remembered as complicit in this malpractice.

One small way to redeem yourself will be to vote FOR the Private Members Bill. I expect no less of you.

In this case, I tried to be fierce but polite. I made direct statements about what I want Fletcher to do.

The media reports that our letters, emails and phone calls are making a difference. So, get creative, send your pollies a message.