The Australian oil and gas industry has disclosed its priorities for Safeguard Mechanism reform to achieve the quickest emission reductions on the path to net zero emissions at the lowest cost to the economy.
The Australian Petroleum Production & Exploration Association (APPEA) stated today that natural gas would play an essential part in a cleaner energy future, supporting renewables in electricity while facilitating hydrogen and decarbonisation techniques such as carbon capture, utilisation, and storage (CCUS).
“The industry is committed to net zero across the economy by 2050 and will play a central role in getting there having already announced billions of dollars of investment in decarbonisation measures,” APPEA Chief Executive Samantha McCulloch said.
According to McCullock, APPEA supports national climate change legislations that sends a signal to the economy to promote the transition and facilitate investment in emissions reductions and net zero technology.
APPEA proposed the following in its response to the Safeguard Mechanism Reforms paper:
- The Safety Mechanism must be responsive to the operational, technical, and economic realities of deep industrial emissions reductions and the timescales required to promote step-change technologies such as CCUS.
- Access to sufficient credible and inexpensive offsets, especially international offsets, must be ensured.
- Emission-intensive, trade-exposed industries must be supported in a manner that upholds international competitiveness while preventing carbon leakage.
- Installing the technology building blocks for decarbonisation in critical industrial centres, such as CO2 transport and storage, low-carbon hydrogen, and firm renewable energy.
McCulloch said Labor must keep its promise to defend trade-sensitive sectors such as LNG exports.
“It is imperative that Australia retains its competitive global position and that gas can continue to power Australia’s and our region’s economy in a cleaner energy future,” McCulloch stated.
She added that the value of Australian LNG exports is reflected in the $9 billion in additional government revenue expected this fiscal year. According to her, this equates to around $14 billion in funding for state and federal public services and infrastructure such as roads, schools, and hospitals.
McCulloch said the sector would collaborate with the government to achieve Australia’s shared net zero goals.
“We aim to ensure the most effective, flexible and sustainable design and implementation of the Safeguard Mechanism to get us to net zero,” she added.
