The recent Federal Government budget put in place the pre-election Liberal Party promise to get rid of the carbon tax, switch off a renewable energy target and dismantle almost all the organisations that support a climate change agenda across Australia.

The premise of the argument strongly put forward by the Liberal government was and still is that achieving climate change goals will have a negative impact on the national economy. In simplistic terms this could be the case, any mis-focus in business that detracts from the core function of the firm could be seen as a cost to business. However, the evidence from around the world suggests when the models are right there can be significant environmental gains from a well performing economy.

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I wrote a story about a year ago on how the Germany economy has bucked the trend during the GFC. When the rest of Europe was in trouble Germany was continuing to grow its manufacturing sector, globalise and still retain the ownership of their marque firms. Australia has been doing basically the opposite. That is failing to globalise, shrinking the manufacturing base and selling off iconic Australian names. So while we have been scared off climate change targets, Germany is on track to reduce its CO2 emissions by 80 to 95 per cent by 2050 while still increasing its manufacturing capability. Sweden too has experienced a 60 per cent increase in economic growth since 1990 and at the same time a 40 per cent reduction in CO2 emissions. Switzerland grew its economy by 54 per cent since 1990 and cut emissions to eight per cent below 1990 levels.

Australia in comparison has also had a growing economy which has been primarily driven by the mining sector. The manufacturing area has declined significantly over the same period and at the same time CO2 emissions have barely changed compared to other economies. Australia does have a target of 80 per cent below 2000 levels by 2050. Based on current performance and policies it is hardly likely that will be achieved.

Many European countries understand that the environment does not mean the economy pays, it can become part of the economy. The main advantage of making environmental targets part of the business sector is the tremendous efficiency gains that can be achieved when reducing the firm’s impact on the environment can be measured in economic terms. Reduced waste means less materials are purchased, less energy, water and chemicals. Green manufacturing can be considered an ultimate lean manufacturing focus. Many people refer to the German economy and ask why our economy cannot be the same.

It only comes with a deep considered approach to an economy-wide strategy at the highest levels of government. Individual firms look to the national strategy for direction and support in their business endeavors.

There are a number of great examples in the printing sector where a focus on environmental issues has positively impacted on the profitability of the firm. Finsbury Green is a well-known example in our country, but similar examples can be found in many other countries around the world. It will be interesting to see how print continues to build on its strong environmental historical performance against a backdrop of next to zero recognition and support for environmental programmes from the national government.

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