BHP Billiton chief executive Andrew Mackenzie said on Tuesday if the world moved rapidly towards a green horizon, and if carbon capture and storage technologies did not prove successful, his company would simply move on to a more economically viable investment. The company also highlighted that despite its past, it was not wedded to any one particular commodity.

Despite its promise, after decades of research, widescale implementation of carbon capture and storage is not guaranteed. The industry recognises this technology may never live up to its promises, and is prepared to look elsewhere, including into renewables, if they can generate a strong financial return.

With China and the United States springing a surprise announcement on the world shortly before the G20 that they would cap, and then reverse their overall greenhouse gas emissions, Australia risks finding itself increasingly isolated.

Prime Minister Tony Abbott also delivered a carefully worded rebuke by German Chancellor Angela Merkel, who told an Australian audience earlier this month that the impact of climate change would be catastrophic if left unchecked, and that its effects would not stop at the Pacific islands.

With its hot, dry climate Australia is one of the most vulnerable nations on the planet in regards to possible future temperature increases that could threaten our scarce water supplies as well as our agriculture sector that contributes about 12 per cent of GDP.

With a shaky economic outlook, a declining manufacturing sector and falling returns from commodities, instead of looking to capitalise on the booming renewables industry, the government finds itself in a semantic debate about winding back previous commitments to the 20 per cent renewable energy target. The government argues that because Australians are using less electricity than when the original targets were set, the goal posts should be shifted backwards, with Industry Minister Ian MacFarlane saying, "you can't expect Australia to accept a 27 per cent renewable target".

But the question is, why not? The actual size of the commitment – 41,000 gigawatt hours – hasn't changed. Moreover, the ACT has already set an ambitious target of 90 per cent of its electricity coming from renewable sources by 2020, and is already in discussions about how it can go beyond that figure once that date has been reached. New Zealand has a 90 per cent target by 2025, and one of the most heavily industrialised areas on the planet, the European Union, has a 40 per cent by 2030 target.

Because of its strong support for medium and large scale renewable energy projects, the ACT has become a magnet for businesses looking to invest in these fields. Such investments typically occur over decades, and for them to be successful policy certainty is critical.

There is no reason the ACT's experience could not be replicated nationally, were the federal government to actively seek out that investment and channel it into a strong, new growth industry. Mr Mackenzie's comments suggest industry would be open to such approaches.

Based on recent comments by the Industry Minister, such an approach seems unlikely in the short term, but there is hope. When big players such as BHP talk, governments tend to listen. If businesses are able to help the government see the economic benefits of backing development in renewable energy investment, not only could we address many of our own domestic energy needs, we could also build a thriving export market for our technology. Demand for these products will only grow as more nations implement their own targets.

As experts such as Australian National University Professor Andrew Blakers have told the federal government repeatedly, the old arguments about security of supply have been largely overcome, and renewables are increasingly becoming cost competitive, especially when the environmental costs of emitting carbon dioxide are factored in.

With its highly educated population, world-leading research into solar and other renewable technologies and its favourable climate, Australia is well placed to become a major player in the sector. The green horizon is coming – it's up to Australia to recognise and grab the opportunity before it passes.