A government, a central bank and climate change policy

There have been two important speeches that help clarify policy issues in regard to climate change and the transition to a net zero emissions.
The first was by the Honourable Chris Bowen, Minister for Climate Change and Energy and the second was by the RBA Governor in waiting, Deputy Governor Michele Bullock. Both events were held by the Australian Business Economists in Sydney. Chris Bowen’s highlight was the announcement of a review of the introduction of a Carbon Border Adjustment Mechanism for Australia. By contrast, Michele Bullock outlined the RBA’s approach to analysing the economic impact of climate change, the transition to net zero and the implications these issues had for inflation and monetary policy. Together, these speeches presented a framework for possible policy tools to encourage the transition to net zero, to understand the economic implications of those policies as well as estimating the economic cost of climate change and the transition process.