The Net Zero Australia Report that came out in 2025 estimated the cost of reaching net zero emissions to be $9 trillion. That is more than three times the nation’s GDP.
Fact:
The figure of $9 trillion has been taken completely out of context. It actually refers to the total amount of investment that will be needed by 2050, not the amount that will be needed to reach net zero. In fact, $8.7 trillion of that investment will have to be spent anyway, even if we were to stick with fossil fuels. This is because large numbers of private appliances and industrial machines, and almost all our road transport fleet, will need to be replaced over the next 25 years. If in the process we ensure that all the replacements are powered by electricity, we will cut our emissions and upgrade our technology at no extra cost. We may actually save money, as electrical equipment is, in general, cheaper to buy and to run than fossil fuel equivalents.
Hence, the actual cost of getting to net zero is not $9 trillion, but $300 billion – a figure that amounts to $12 billion a year. This is less than half of what is spent on alcohol each year and only a third of what is spent on gambling!