There will also be a significant role for fossil fuels even post the historic and important agreement adopted by more than 180 nations in Paris late last year, he said.

“The reality is that there will be significant demand for our energy and minerals going forward and this forms the basis for long term optimism for these sectors of Australian industry,” Frydenberg told the National Press Club in Canberra.

“It’s the consequence of simple arithmetic. Between 2010 and 2030 there will be major increases in the world’s population by 23%, the world’s urban population by 42% and the world’s middle class by more than 100%, all of which fuels demand for hard commodities.

“The biggest movements are occurring in emerging economies right on our doorstep, putting us in an ideal position to capitalise.”

Frydenberg said there is no room, however, for complacency.

“We are operating in a fiercely competitive global market,” he said.

“We need the right domestic policy settings if we are going to seize the investment needed to meet the next wave of demand which is coming out of our region.”