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Australia Seen Facing Steeper Borrowing Costs If Slow on Climate

  • RBA board member Harper flags green transition opportunities
  • Easy for funds to dump Australia to make a statement, he says
Coal Ports At Newcastle As Aussie Floods Add to Supply Concerns
Photographer: Brendon Thorne/Bloomberg

Australia runs the risk of much steeper borrowing costs if financial markets view the country as too slow in cutting carbon emissions, according to Reserve Bank board member Ian Harper. 

A perceived lack of commitment to reducing emissions could also make it difficult to raise funds overseas, presenting another concern for a capital-importing nation like Australia, Harper said.