LABOR’S NET ZERO FANTASY HITS ENERGY DEMAND REALITY
Shadow Minister for Resources, Senator Susan McDonald has expressed alarm at the Albanese Labor Government’s economic Net Zero modelling for failing to adequately reflect future demand for Australian coal and gas, warning that investment, jobs and export opportunities could be lost to overseas competitors.
Senator McDonald used this week’s Senate Estimates to highlight Treasury modelling showing exports of green commodities will overtake Australia’s coal and LNG exports in the early 2030s.
In contrast, the Australian Government-supported 9th ASEAN Energy Outlook projects coal supply in South East Asia could more than triple by 2060 under its baseline scenario.
Senator McDonald said the contrast raised serious questions about the assumptions underpinning the rush to Net Zero and whether the Albanese Government is doing enough to secure investment in industries that remain important to Australia’s trading partners.
“The Albanese Government’s anti coal and gas agenda, including the Safeguard Mechanism, EPBC Act changes, slow approvals and funding for activist organisations to challenge new projects and expansions mean Australia will not be ready to supply the coal and gas the world needs,” she said.
“Instead the investment, jobs and taxes will be in other countries who are not anti-fossil fuels. Meanwhile, the jobs and taxes promised from green industries are not able to be identified by DCCEW, DISR or even the ABS.
“This government is full of rhetoric but all that hot air will jeopardise Australia’s future prosperity.
“The ASEAN report projections can’t just be ignored because they don’t fit the Government’s radical agenda.”
Senator McDonald said greater transparency was needed about impacts on the economy if green export industries developed more slowly than projected while international demand for coal and gas remained strong for longer.
“Coal and gas are established industries generating export income, government revenue and high-paying regional jobs,” she said.
“Green iron, green hydrogen and other emerging industries claim to offer opportunities but economic reality is affecting production, investment, demand and delivery.
“If Australia discourages investment in new coal and gas projects through uncertain approvals and high regulatory costs, overseas producers will capitalise on demand that we could otherwise supply.
“This will have devastating impacts on employment and revenue from taxation and royalties.”
Senator McDonald said the Government should explain how policies including the Safeguard Mechanism and proposed environmental approval changes had been assessed against Australia’s international competitiveness.
She also called for clearer, independently testable projections of future green industry employment, wages, export earnings and Commonwealth revenue.
“Once again we are seeing Labor’s Net Zero fantasy at odds with economic reality, and it will cost Australia dearly,” she said.
“The Coalition will unleash our resources sector by scrapping Net Zero, streamlining approvals, restoring the Junior Minerals Exploration Incentive and opening up more mining leases.”
ENDS