Climate philanthropy is playing a critical role in Australia’s future, with the power to create over 500,000 jobs and billions of dollars in economic activity.
The Australian Environmental Grantmakers Network (AEGN), The Economics of Giving: The Case for Climate Philanthropy report quantifies the economic and social value unlocked with the support of philanthropic investment.
According to the Australian-first report, philanthropy has played an important role in advancing climate solutions across the nation, despite donations to environment and climate change accounting for less than four per cent of total Australian philanthropy.
The research focuses on four case studies of key climate outcomes achieved with support from philanthropy and the non-government sector, using interviews and desktop research to understand economic benefits, as well as using information from existing studies, reports and publicly available data.
In one example, the case of AGL’s transition to renewables was shown as a shining example of what philanthropy can do.
In 2022, AGL announced a landmark decision to accelerate the closure of all its coal-fired power stations to 2035 – 13 years earlier than originally planned.
According to the report, the decision will save the emissions equivalent of taking 8.5 million cars off the road each year.
Philanthropy contributed at least $9 million to make those changes happen, according to the report.
The decision to move to renewables also included a commitment to invest $20 billion in renewable energy infrastructure and transforming AGL’s core business.
The report also found the economic ripple effects of such an investment are also significant; based on insights from Australia’s wind energy sector, every 50MW of renewable capacity generates approximately 839 direct and indirect jobs annually
With AGL targeting 12GW of renewable and firming capacity over the next decade, the report said the company’s investment could result in an estimated 201,292 jobs and inject an estimated $59.4 million into regional communities over the next decade.
“AGL’s transformation demonstrates the power of civil society, philanthropy, and investors in driving meaningful change,” the report concluded.
“It serves as a compelling example of how collective pressure can drive businesses to align with global climate goals, setting a powerful precedent for similar efforts worldwide.”
AEGN chief Claire O’Rourke says the findings are a celebration of what has been achieved and an urgent call to ramp up philanthropic efforts to deliver positive outcomes for the Australian economy, the environment and future generations.
“People who are members of the Australian Environmental Grantmakers Network know that it’s so important to have a thriving economy and a healthy society, and that relies on a healthy environment,” Ms O’Rourke told AAP.
“And as the technologies are coming into play that allow us to get off fossil fuels, move to a clean energy future and use nature-based solutions to help build our country, we will also help healing our environment.
“It’s by working together, across society, across civil society, across government, that we can actually make a big difference and help put ourselves on a faster and fairer transition to a clean economy.”
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