REPORT: Meeting a 2°C target – A marginal abatement cost (MAC) curve for Australia

In becoming a signatory to the Paris Agreement, the federal government has accepted the risk of a significant future liability as Australia begins to transform its economy. At the same time, debate continues over the design of policy to meet Australia’s current and future emissions targets, including which emission reduction opportunities should be pursued, and the cost of transitioning to a 1.5-2 degree aligned emissions trajectory.

While Australia’s policy environment remains uncertain, scrutiny of the impact of climate risk on Australian businesses has grown, with the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) affirming