Tackling climate for big returns

This is because, just like our economy transformed itself after we moved away from protectionism, our economy will transform itself after we move away from a world where carbon is free and climate change is a problem, to a carbon-constrained world where climate change is not a problem.

Free trade did not result in long-term unemployment and decreased economic growth, and neither will addressing climate change. This is because although jobs may shift away from high-emitting industries, there will be new jobs in low-emitting industries such as renewable and clean coal-natural gas power generation.

Also, putting a price on carbon emissions will provide significant incentives for industry to innovate and develop technology to make economic activity more efficient in terms of carbon emissions per unit of production.

The Stern Review estimated that this ''innovation industry'' could be worth $US500 billion a year by 2050, an amount which would represent large numbers of new jobs in Australia and around the world. But despite this, opponents of climate-change action will continue to deceive the public into accepting the false choice between jobs and climate-change action. They will do this either to satisfy their own political needs, or to prop up their misinformed views about the reality of climate change.

Given this, the task of government will be to show leadership and be bold in arguing the need for structural change in our economy. It will be their job to present the public with the real choice between addressing climate change and experiencing the long-term benefits or not addressing it and paying the long-term costs.