Economic Development in Tropical Queensland & Net Zero

The Paper reviews the realities of the economy of the Tropical Queensland region and the pathways to achieving further economic development. It identifies the need to continue developing industries based on the region’s mineral and biological resources and locational advantages that earn income from outside the region while pursuing opportunities to develop higher order manufacturing and services as population and the economy grows to replace goods and services currently imported into the area. Satellite mapping of carbon absorption as indicated by plant growth indicates that tropical Australia’s absorption is roughly equivalent to southern Australia. But with only 5% of Australia’s population living in the area, CO2 emissions generated in the area will be very much lower. However, the Paper provides evidence that the structure of the economy of the Tropical Queensland region results in it being very energy dependent on a per capita basis and the overwhelming majority of the energy consumed is currently from fossil fuels. On top of this, the economies of the Mackay and Central regions are heavily dependent on exports of fossil fuels overseas. Against this background, the Paper canvasses a number of major challenges net zero poses to future growth and development including the threat of higher energy costs to the competitiveness of the region’s agricultural, fishing, mining and tourism industries’ ability to compete in international markets, the threat that restrictions on tree clearing pose to the further realisation of the area’s large underdeveloped agricultural potential, and the potential demise of fossil fuel exports. However, the Paper also explores some opportunities, pointing to the region’s strong solar generation potential, the high potential role of tropical agriculture in biofuels and potential in hydro electricity generation.