Over the past 20 years, Queensland has proven itself to be an economic outperformer. On the back of a strong health care and social assistance industry, professional services and mining industry, the Queensland economy has expanded by 89 per cent over the past 20 years, compared to the national economy which grew by 72 per cent. Over the same period, over 1 million jobs have been created and Queensland’s population has grown more than 45 per cent.

As the Reserve Bank’s interest rate hikes slow growth in the national economy, Queensland’s growth is also expected to slow as household consumption weakens. However, Queensland’s economic outperformance is expected to continue, supported by business investment, public demand and exports, as well as strong population growth. Both government and businesses are investing in the future. The investment pipeline is strong and diversified, with major projects in resources, roads, rail, building, bridges and electricity infrastructure.

Coal, metals and LNG continue to underpin Queensland’s economic development. In 2021-22 the direct economic contribution from the resources sector exceeded $44 billion. As coal accounts for greater than 75 per cent of Queensland’s total resources exports, the industry does need to evolve and diversify as countries seek to limit carbon emissions. Queensland’s opportunity is to explore for, mine and process metals and minerals critical to global decarbonisation efforts.

Besides developing a critical minerals sector, the Queensland Government has also set the goal to transform the energy system to deliver clean, reliable and affordable power. The government has committed $19 billion over the next four years towards transforming the state’s energy system, with the ambitious goal to reach 70 per cent renewable energy by 2032.

Supporting this transition will require not only direct investment in renewable energy infrastructure, but specialised supporting services and supply chains. Queensland’s financial and insurance services industry has the potential to be an enabler of this transition. The industry can play a vital role through sustainable finance offerings, including trading carbon credits, financing renewable energy projects, and issuing green, social and sustainable bonds. Pursuing this opportunity could enable Queensland to invest in an emerging growth sector at its nascent stage.

The renewable energy transition will assist in future-proofing the state, reaping its geographical advantages, including solar, wind and hydro resources, with the potential to assist other countries to decarbonise through hydrogen exports. The transition is expected to add another 100,000 jobs to the Queensland economy by 2040. Queensland will continue to be an economic outperformer, with the state forecast to see the strongest economic growth of all states in 2023-24. 

The views expressed in this article are the views of the author, not Ernst & Young. This article provides general information, does not constitute advice and should not be relied on as such. Professional advice should be sought prior to any action being taken in reliance on any of the information. Liability limited by a scheme approved under Professional Standards Legislation.