By Jacob Shteyman in Canberra

Donald Trump’s re-election as US president spells bad news for climate change but could be a boon for big fossil fuel exporters like Australia.

Global climate targets are up in the air with the climate-sceptic Republican back in the White House.

With the UN climate change conference COP29 kicking off next week in Baku, economics professor Mike Dockery expects global leaders to withdraw or water down their climate commitments.

Investment in green technology such as batteries and green hydrogen benefited from subsidies in the Biden administration’s Inflation Reduction Act, which Mr Trump has promised to unwind.

“If they go, the people here who have green hydrogen and green ventures, they’re going to be pretty nervous right now,” Prof Dockery said.

“But on the other hand, the more traditional fossil fuel side and the gas sector, potentially this could be a boon for them. So that could definitely benefit Australia.”

While delaying climate change action is bad in the long run, Mr Trump’s policies mean less tax, less regulation, cheaper energy prices and higher economic growth in the immediate term, Prof Dockery said.

Mr Trump’s volatility would also feed into global uncertainty and potentially boost the price of gold, another Australian export.

But economists, as well as the Reserve Bank of Australia and Treasury, have warned of the adverse effects the incoming president’s promises of widespread tariffs of up to 20 per cent and higher levies on Chinese imports would have on the Australian economy.

In Mr Trump’s last presidency, Australia managed to score an exemption from steel tariffs by successfully arguing the two countries’ special relationship.

Treasurer Jim Chalmers reiterated Australia’s “strong and enduring” relationship with the US in a speech on Thursday night.

“In this world, strong, stable friendships built on shared values are more important than ever,” he told a gathering of Japanese investors in Australia.

“We shouldn’t be surprised if a new US Administration brings change.

“But equally, we should be confident in our ability to navigate that change, as partners.”

In a separate speech, Prime Minister Anthony Albanese argued democracy was the “strongest antidote to the corrosive forces of cynicism and division”.

“When the stakes are high, passions run high,” he said.

“But these are not warning signs, they are vital signs. Proof of life and cause for hope.

“Because only dictatorships pretend to be perfect. Democracy is proud to be human.”

Trump brings more complications to Albanese’s election year