Embracing renewable energy and net zero can make SA a powerhouse, Rod Sims says

South Australia is primed for one of the biggest eras of industrial growth in the state’s history if it can capitalise on one thing, a leading economist says.

South Australia has the potential to reverse decades of economic decline and turn itself into a national powerhouse if it fully embraces the switch to renewable energy and net zero emissions, according to former competition boss Rod Sims.

Mr Sims was in Adelaide Friday to address a climate change conference and said the transformation would be driven by plentiful and cheap green energy and could lead to “South Australia’s second major era of modern industrial growth after the post-war expansion under the Liberal leadership of Thomas Playford’’.

“This is completely the chance to transform and jump in, get to the front of the queue and see South Australia’s contribution to Australia’s GDP rising and rising. This is a great opportunity for South Australia,’’ said Mr Sims, who is chair of the Superpower Institute, a climate change think tank founded by veteran economics and energy expert Ross Garnaut.

Mr Sims forecast the move to global net zero would mean more iron ore and copper mines would start in SA and said environmentalists needed a “mindset change’’ about mining.

“Some people with environmental concerns might say all the mining is terrible. No, mining is our future,’’ he said. “You can’t have an economy without copper, aluminium and steel. You just can’t and we can produce them in a green way.’’

Australia is the world’s largest exporter of iron ore, but Mr Sims said if Australia processed it at home instead of sending it overseas, the 7 per cent of global emissions generated by making steel using fossil fuels could be eliminated.

A wind turbine outside of Jamestown, South Australia. Picture Morgan Sette

He also said the move to renewable energy would lead to much cheaper electricity for households within a decade, as increasing amounts of wind, solar and the state government’s plan to build a $600 million hydrogen plant came to fruition.

“I have zero doubt electricity prices in Australia will be much cheaper … and they’ll be as cheap as anywhere in the world,’’ he said.

Mr Sims said state and federal governments needed to move quickly and supply funding to capitalise on the opportunity. He acknowledged a lot of private and government money would be required but said for too long the focus had been on the costs of the economic transformation and not the benefits.

He said there were also economic benefits to be capitalised on in areas such as green fuels, fertilisers, biomass and carbon sequestration and that associated economic lift would last much longer than the China-inspired resources boom of the early 2000s.

Mr Sims said even those who still didn’t believe in the science of climate change had to accept the energy transition was now inevitable.

“Argue all you like to go over in that corner of the room and have a good discussion about climate science, but it’s happening. The world is adapting. And we’ve got the best chance to take advantage of it, particularly in South Australia,’’ he said.

Originally published as Embracing renewable energy and net zero can make SA a powerhouse, Rod Sims says