The Australian oil and gas industry claims that the amendments to the Safeguard Mechanism overlook natural gas’s critical role in attaining Australia’s climate goals, the Australian Petroleum Production & Exploration Association (APPEA) said.
According to APPEA, the industry is committed to net zero emissions by 2050 and an economy-wide approach to reducing emissions.
However, APPEA Chief Executive Samantha McCulloch stated that today’s agreement would make Australia’s climate change ambitions more complex and costlier to accomplish in the long run.
“Australia’s natural gas is critical to reaching net zero in Australia and the region, supporting the transition away from coal and providing reliable backup for renewables while powering Australian manufacturing,” McCulloch said.
In addition, McCulloch added that the industry is a significant investment in emissions reduction and renewable technology.
“Not only is new gas supply needed to support our climate change objectives, but it is also essential to avoid energy shortfalls and put downward pressure on prices,” McCulloch stated.
McCulloch said Australia must produce more gas to promote economic decarbonisation and meet energy demand, as advocated by the Australian Competition and Consumer Commission (ACCC) and the Australian Energy Market Operator (AEMO).
“New gas supply investment needs policy and regulatory certainty but instead, the Labor-Greens deal creates additional barriers to investment, further diminishing the investment environment and adding to the growing list of regulatory challenges facing the sector,” McCulloch explained.
According to APPEA, the amendments announced today emphasise the importance of strong government leadership in critical step-change technologies such as carbon capture and storage (CCS).
McCulloch stated that if the government is serious about attaining net zero, it must take the lead in developing a national CCS plan. She said Australian gas is also required to assist international partners in decarbonising.
“According to the Federal Government, our exports have the potential to lower emissions in LNG-importing countries by around 166 million tonnes of carbon dioxide annually replacing other higher emissions energy sources,” She added.
She said decisions that rule out emission-cutting options, such as natural gas, make reaching net zero much more complex and expensive.
“We can’t let politics and ideology get in the way of sensible, evidence-based climate and energy policy,” she stated.
