THE CHIEF economist at the ANZ has said increasing focus on climate change mitigation policy across the globe could profoundly change world manufacturing systems - presenting a golden opportunity to the Australian economy.
"Traditionally, the model of manufacturing has been to set up in a low cost environment and then ship energy, whether it be gas or coal, to the location," Richard Yetsenga said.
"Renewable energy is not so easy to transport so the manufacturing has to come to where the energy is created which is a great advantage for Australia."
"It is a potentially game changing shift, a dramatic recalibration of what the global economy looks like," Mr Yetsenga said.
"Ross Garnaut has outlined some of those opportunities within the renewable space in his climate change review and they could be a big boost for Australia."
Mr Yetsenga said he felt stricter adherence to climate change mitigation obligations would become the global norm.
"We've had Joe Biden in the US come out with his climate policy if he wins office, there will be carbon quotas on carbon intensive countries that don't meet obligations.
"The EU will do the same via its carbon border adjustment tax.
"What we have is the largest economic zone in the EU and the largest single economy in the US signal this could be the way forward.
"It will no longer be enough to go your own way and say you're meeting your Paris objective targets, it will be whether others think you are doing your bit."
"The world will move to work harder regarding how it complies with the goals of the Paris accord and that will have implications on grains.
"This will come directly in terms of how food is grown and indirectly, through the manufacturing process along with transport."