Trading and the environment are two of the biggest talking points in Australia. With the Paris Agreement removed by the UK in their trade deal back in 2021, things have and are continuing to shift. Between keeping the economy in good shape through exporting their natural resources and meeting climate change goals, it’s a juggling act that would give even the most experienced professional a headache!
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Mining is increasingly integral to Australia’s economy
As one of the biggest exporters of coal, iron ore, bauxite, alumina and many other resources, the mining industry is a pillar of the economy in Australia. The gross value has hit hundreds of billions of Australian dollars in the last decade alone. In fact, the real figure accounted for over 9% of the total gross value!
With so much of the country’s economy supported by the mining industry, it’s easy to see why such a high importance is put upon it.
Australia’s carbon emissions
Whether it’s as a direct result of the mining activity or not, Australia has one of the highest emissions per capita rate in the world. The government has increased its “gas-fired recovery” and favoured this over a greener approach, which is a far cry away from the rest of the worlds ambitions to improve emissions and help the planet.
They’re currently in the process of replacing coal power plants with government-funded gas plants, with the main being located in New South Wales. Although those in government have failed to set any concrete zero emissions targets (and it appears they may be a while off), there does seem to be evidence of effective climate policies in most states and mainland territories.
The trade-off
What choice would you make? To continue to produce one of your countries biggest exports at the expense of the planet, or stop what you’re doing to focus on the environment? It can be a difficult trade-off between the two, especially as one counteracts the other.
According to a report in 2019, their carbon footprint is equivalent to the total emissions of Russia, which is currently the fifth biggest CO2 emitter globally. Because of the volatility of the market, if you’re looking into CFD trading, now may be a good time to explore your options further. This specific trading option allows you to trade the price movements of currency, stocks and commodities, all without buying the underlying product. Thanks to its flexibility, you can easily take advantage of both the rising and falling markets, making it a popular choice for traders.
Whether you think it’s the right time to start exploring the market or your simply doing your research, Australia’s market certainly is an attractive one.
