Australia lags behind global green competitiveness ahead of G7 summit
Germany, Italy and the United States will participate in the G7 summit as world leaders in green competitiveness, while Australia will participate as âGreen Laguardâ.
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 range and number of complex and technologically advanced green products which have proven to be a powerful engine of economic development and growth.
Italy overtook the United States in the 2000s and is now second in the world rankings. The other major countries are China, Japan and the United Kingdom.
However, Australia’s green competitiveness has declined significantly over the past two decades and is currently barely ranked in the top 100 of 231 countries and territories assessed (96th in the ranking).
Among the countries considered, Australia seems to be in the best position to export environmentally friendly products competitively. Australia would only have 12 âgreen forcesâ out of 59 in Canada and 153 in China.
âIt’s exciting to see Australia lagging behind other countries,â said Dr Mealy, researcher and research associate at SoDa Labs, Monash Business School, University of Oxford.
âThe writing has been on the wall for some time. Demand for high-emitting 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 Research Policy magazine. Green Transition Navigator maps the strengths and opportunities of the green economy in 231 countries and territories.
This tool displays each country’s Green Complexity Index (GCI), which measures both the number and complexity of green products that each country can export competitively. It also shows the potential for green complexity (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. The demand for these may increase as investment in cleaner public transport increases.
When it comes to potential green opportunities, Australia is relatively close to most of the green products used in this analysis. Some relatively similar opportunities include tamping machines and road rollers used in recycling and solid waste treatment processes.
However, the underlying data does not yet capture the âgreennessâ of the production process in each country. For example, Australia’s strong potential to acquire products such as “green” steel made from hydrogen rather than coal has not yet been taken into account.
âChina has rapidly become more competitive in green products over the past two decades and is now a world leader in the export of solar cells, fuel cells, electric floor heaters and more,â said the Dr Mealy. ..
Australia, on the other hand, has seen a significant decline in its green production capacity over the past two decades and now lags many countries in its ability to competitively export products related to the green economy.
âCurrently, it is important for Australia to be more proactive in decarbonizing its production processes and investing in new capabilities to enable prosperity in the green economy.
âAustralia provides incredible funding for renewable energy and has a strong track record of green patents, but its global export competitiveness is now supported by coal, gas and iron ore. . “
âOur analysis shows that Germany has always maintained its position of ‘green leader’, followed by Italy and the United States. These countries are now capable of competitively exporting a wide range of âcomplexâ or technologically sophisticated green products.
âThe competitiveness of green products allows countries to benefit from the green transition, but the competitiveness of more complex products is also important, which strengthens the overall economic growth and diversification prospects of the country. Is shown. “
Climate change and the transition to net zero have been high on political 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). ..
Green Products Data Set The technology mentioned in this report is based on the compilation of the APEC, OECD and WTO green product classifications. National trade data CEPII BACI database (Gaulier and Zignago, 2010). To avoid skewing measurements due to short-term trade fluctuations, the analysis is based on an annual average of transaction values ââover the five years from 1995 to 1999 to 2015 to 2019 (time interval shown). Otherwise, data is for the latest period from 2015 to 2019).
Identifying 21st Century Green Tigers
Green transition browser: green-transition-navigator.org/
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