Could climate transition be Queensland’s
greatest economic opportunity?
Experts share practical steps organisations can take to thrive in a net-zero economy.
Featured expert Professor Belinda Wade with industry leader Mark Hutchinson.
What will Queensland’s economy look like in 2036?
The answer will depend, in part, on how businesses respond to the net-zero transition today.
For many organisations, this transition isn’t simply an environmental challenge – it’s one of the biggest economic opportunities of a generation.
As demand for low-carbon products and services increases, new markets emerge and mandatory climate reporting increases transparency, businesses across Queensland will find new avenues to innovate, attract investment and strengthen their competitive position.
According to The University of Queensland (UQ) Business School alum and climate transition leader Mark Hutchinson, the Sunshine State is uniquely positioned to be at the forefront of this shift towards net-zero.
"I think Queensland has a great opportunity to lead not just Australia, but the world in showing what's possible," Hutchinson said.
It’s a vision Hutchinson is helping to advance through his support of UQ’s newly established Chair in Climate Action and Ethical Transitions, which aims to help organisations navigate decarbonisation and climate transition.
The Chair is led by one of Australia's foremost climate transition experts, Professor Belinda Wade, from UQ Business School’s Net Zero Observatory.
Professor Wade notes that Queensland has an excellent base to be a world leader in a decarbonised transition – with abundant natural resources, a strong industry base and world-leading research – but stresses that collaboration will be paramount.
“Our leadership in the transition will be measured by what we build, how we collaborate, and how inclusive we are in this process – ensuring that no region, sector or community is unheard or left behind,” said Professor Wade.
Queensland already has the foundations to lead
Few regions are better placed to benefit from climate transition than Queensland.
The state's economy is built on globally significant industries, including mining, agriculture, manufacturing, tourism and energy. While these sectors face challenges as markets evolve, they also stand to benefit from growing demand for cleaner products, services and supply chains.
Hutchinson has seen this firsthand through his work with Fortescue, where the focus includes electrification, green iron technologies and renewable energy.
"If a mine can decarbonise, every business can decarbonise," Hutchinson said.
"We have an economy built on industries that are very important to the global economy."
Across Australia, emissions in the year to March 2025 were 28.1% below levels recorded 2 decades earlier, reflecting the growth of renewable electricity, land-sector abatement and increased uptake of solar and electric vehicles.
Yet the transition remains a work in progress.
Research involving UQ Business School found that nearly two-thirds of the world's largest fossil fuel producers aren’t yet aligned with pathways that limit warming to 1.5°C, illustrating both the scale of the challenge and the opportunity available to businesses that move early.
For Queensland organisations, the question is becoming less about whether change is coming and more about how to position themselves to benefit from it.
4 ways organisations can navigate climate transition to their advantage
Professor Wade shares the practical steps that organisations can take now to proactively navigate and lead a climate transition that also enhances their economic advantage.
1. Understand your climate risks
Professor Wade believes businesses should start by building a clear understanding of risk.
That means identifying the potential impacts from both physical climate risks, such as extreme weather events and supply chain disruptions, and transition risks, including changing regulations, emerging technologies and shifting customer expectations.
“Understanding where you're at before moving forward is a foundational step,” Professor Wade said.
One tool growing in importance is climate scenario planning, which helps organisations explore how a range of future conditions could affect their operations and strategy.
“Scenario planning can help companies understand risk, test the resilience of their strategies, build internal knowledge and manage uncertainty,” Professor Wade said.
A key component of this process is backcasting, where organisations first define a desirable future outcome and then work backwards to determine the decisions, investments and capabilities needed to get there.
“It starts with the future and works backwards to identify what has happened between then and now, and importantly, allows us to consider what has supported that process – events, systems, people – what will make that future possible,” Professor Wade said.
Rather than viewing climate change purely as a source of risk, forward-thinking organisations are increasingly using these exercises to uncover new markets, services and competitive advantages.
Professor Wade's recent research examining 24 major Australian companies highlights the value of quality scenario planning in helping organisations make more informed long-term decisions and identify opportunities that others may overlook.
Belinda cautioned that although scenario analysis is a powerful strategic management tool, organisations using unrealistic or overly favourable scenarios in a mandatory reporting context, risk being exposed to accusations of greenwashing.
2. Develop a transition plan and think beyond compliance
While climate reporting requirements have captured the attention of many organisations, Professor Wade argues that reporting alone won’t create meaningful change.
The organisations that gain the greatest advantage will be those that use climate information to shape business strategy.
"Our customers, investors and markets have already started to change what they're looking for, so we need to make sure we’re evolving alongside them," Professor Wade said.
Professor Wade has explored how organisations respond to emerging climate disclosure requirements and adopt best-practice climate management approaches.
“A common finding is that organisations achieve stronger outcomes when climate considerations are embedded into decision-making rather than treated as separate compliance activities,” she said.
“Developing a clear detailed transition plan is a critical step.
“For some businesses, this may involve transitioning energy sources. For others, it could mean redesigning products, improving operational efficiency, investing in new technologies or adapting business models to suit changing customer demands.”
Studies by the Investor Group on Climate Change suggest investors are increasingly prioritising organisations with credible transition plans and sustainable business models.
For Queensland businesses, this represents an opportunity to attract capital by demonstrating a clear pathway to future growth.These issues are increasingly top of mind for business leaders across the state.
At UQ Business School’s inaugural Sustain Queensland event in 2025, conversations explored the practical realities of transition, including finance and investment, technology and infrastructure, organisational change, climate capability, trust, misinformation, and the role of people in shaping successful outcomes.
What emerged from these discussions was a recognition that climate transition is no longer simply an environmental issue. It’s increasingly being recognised as an economic, workforce and leadership challenge.
These themes continued to shape conversations at Sustain Queensland 2026.
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3. Invest in people and capability
Technology often dominates headlines, but Professor Wade believes successful transition is ultimately about people.
A key focus of her research is building organisational capability, recognising that technology and human skills must develop together.
"Mandatory reporting frameworks create pressure, but it's a significant ask for companies to step up to," Professor Wade said.
"That's why education is so important, not just at the technical level, but at the leadership level."
As organisations navigate an increasingly complex operating environment, they need leaders who can think strategically, adapt to change and guide teams through uncertainty.
Professor Wade highlights the importance of developing what are known as dynamic capabilities – the organisational ability to evolve, respond and innovate as circumstances change.
"I see that this is where academia's role is critical: not only to inform, but to equip,” she said.
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4. Develop trust and invest for the future
Alongside capability, trust is emerging as a critical business asset.
As organisations navigate transition, stakeholders increasingly expect transparency around risks, plans and progress.
That means communicating openly with employees, investors and communities, particularly low-income earners and vulnerable groups who are often disproportionately affected by climate-related disasters and economic disruption.
Professor Wade believes organisations that fail to maintain trust risk undermining long-term success.
"If you lose that trust and social licence, it will impact your business economically," she said.
“When paired with long-term investment thinking, that trust can become a powerful competitive advantage.
"It's not a trade-off. The gains we make just won't be durable if we've left people behind, haven't communicated effectively or haven't understood their needs, wants and how they can be part of the transition.”
Professor Wade encourages businesses to consider future climate conditions when allocating capital, helping avoid investments that may fail to deliver value in a changing regulatory, environmental, social or economic landscape.
For Hutchinson, organisations that take a long-term view will be best positioned to access emerging opportunities and attract the investment needed to support growth.
A future worth building
Queensland's future prosperity will be shaped by decisions made today: how organisations invest, innovate, build capability and bring communities along the journey.
The opportunity is significant. So, too, is the responsibility.
But if Queensland can harness its strengths, build on its industrial foundations and continue investing in people, technology and trust, Hutchinson believes the state can become a global example of what's possible.
Professor Wade agrees, “The question is no longer whether the transition will happen, but how we choose to participate in it.
“The decisions organisations make today will influence not only their own success, but Queensland’s economic future.”
The question for business leaders is simple: when that 2036 future arrives, will their organisation be helping lead it, or watching from the sidelines?
Professor Belinda Wade
Belinda Wade holds the Chair in Climate Action and Ethical Transitions at The University of Queensland Business School. Her research promotes organisational progress on climate and sustainability issues with a focus on decarbonisation and organisational climate transitions.
Mark Hutchinson
Mark Hutchinson is an international business leader with extensive executive experience across energy, infrastructure and technology, including senior leadership roles at GE and Fortescue Energy. He currently serves as Senior Advisor to the Fortescue Board, following his leadership of the company's global green hydrogen and renewable energy initiatives. Mark holds an honorary Doctor of Business from The University of Queensland, where he is the primary sponsor of the Ethics Chair.