"It's not about a green race to the top,it's an economic race,and the people who win will capture market share,"said Mr Topping,whose role involves engaging the private sector with Paris Agreement goals.
He said that due to Joe Biden's US election victory,along with recent net zero emissions announcements by China,Japan and South Korea,had left Australia even more out of step with its peers,competitors and markets.
"Australia's on track to the wooden spoon in their climate change championships,but has a chance to be really a leader,particularly on the new energy system which is going to be based on renewables and hydrogen,"said Mr Topping,who will address the Australasian Emissions Reduction Summit hosted by the Carbon Market Institute on Friday.
"To have less ambition than your main markets,it's just economic folly."
It’s not about a green race to the top,it's an economic race,and the people who win will capture market share.
Nigel Topping
Mr Topping said with its access to space,sunlight and Asian markets,Australia could be a renewable energy leader if"the national government could only get as excited about the resources above ground as resources underground".
"I think that there's a cognitive shift that needs to be made from coal. It is not going to have a role in the global economy in 20 years time… that's just inexorable,driven by economics and technology."