Donald Trump might be a speed hump on the road to net zero, but the business and climate case for renewables leaves Australia in the box seat to capitalise.

The start of a second Trump presidency has led many to question the future outlook for energy in Australia and around the world, and what impact the new US administration will have on the move towards net zero.

Economist Ross Garnaut AC, who is Professor Emeritus at both The Australian National University and The University of Melbourne, spoke to Andrew Jaspan, editor-in-chief of 360info, about where things now stand.

Last November, you seemed to think there were real prospects for renewables in the world and the move towards net zero. You thought that the political and international settings for the environment were favorable. What’s your feeling today?

Oh, I certainly thought there were prospects of moving forward. A number of aspects of the international settings were favourable.

China is not only the world’s main producer of capital goods for the new economy, but also by far the world’s biggest user of renewables. Last year China produced more renewable energy than the rest of the world combined. Europe and other economies of Northeast Asia are also making good progress.

And that creates a huge opportunity for Australia to use some of our renewable energy resources to support new industries exporting goods, especially to Europe and Northeast Asia – countries that can’t generate the renewable energy to do it themselves.

The election of Trump doesn’t change the physics [of climate change] one bit. Atmospheric physics doesn’t care who wins American elections or what commentators are saying on Fox News.

Climate change is getting more severe and that will require a response, even though that may be an ignorant response. If it turns out to be an ignorant response, that would undermine our social and political order.

But it may also engender a positive response. I certainly think [Trump’s election] will have a negative effect on the US’ interaction with the international community. It may not have such a big negative effect in the United States, because Trump may not find it easy to repeal all the Biden measures.

One of the first executive orders President Trump signed was to withdraw from the Paris Agreement again. How do you see the impact of that decision on the rest of the world?

Well, that’s up to the rest of the world. It will be influential. But,........

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