What you will find on this page: LATEST NEWS; Fossil fuel emissions have stalled; does the world need hydrogen?; Mapped: global coal trade; Complexity of energy systems (maps); Mapped: Germany’s energy sources (interactive access); Power to the people (video); Unburnable Carbon (report); Stern Commission Review; Garnaut reports; live generation data; fossil fuel subsidies; divestment; how to run a divestment campaign guide; local council divestment guide; US coal plant retirement; oil conventional & unconventional; CSG battle in Australia (videos); CSG battle in Victoria; leasing maps for Victoria; coal projects Victoria
Huge task to decarbonise
Source: Australian Delegation presentation to international forum held in Bonn in May 2012
Latest News 13 July 2015, The Guardian, Abbott government extends renewable energy investment ban to solar power. Clean Energy Finance Corporation banned from investing in small-scale solar projects in move industry claims is ‘revenge politics’ that will strangle the sector: A directive banning the Clean Energy Finance Corporation (CEFC) from investing in existing wind technology will also apply to small-scale solar projects, a move that will effectively throttle the industry, the Australian Solar Council said. The federal government on Sunday confirmed that the $10bn CEFC will no longer invest in wind power, instead focussing on “emerging technologies”. “It is our policy to abolish the Clean Energy Finance Corporation because we think that if the projects stack up economically, there’s no reason why they can’t be supported in the usual way,” Abbott told reporters in Darwin. “But while the CEFC exists, what we believe it should be doing is investing in new and emerging technologies – certainly not existing windfarms. “This is a government which supports renewables, but obviously we want to support renewables at the same time as reducing the upward pressure on power prices,” the prime minister said. “We want to keep power prices as low as possible, consistent with a strong renewables sector.” 7 July 2015, The Guardian, Bulga residents battling mine expansion hail NSW government planning decision. The NSW planning minister says a proposed amendment would give social and environmental issues equal standing with the economic in decision making. Residents in the New South Wales town of Bulga, which was previously earmarked for relocation due to the expansion of a nearby mine, have seized upon changes to the state’s planning laws as potentially crucial in their battle to prevent the project’s extension. NSW planning minister Rob Stokes has released a proposed amendment to the state’s mining environmental planning policy. The change removes a provision that makes the economic importance of resources “the principal consideration” when determining whether to allow mining projects. Stokes said the draft change would ensure decisions were made with environmental and social, as well as economic, factors in mind. Read More here 7 July 2015, Bloomberg Business, Refracking Is the New Fracking: The technique itself is nothing new. Oil crews across the world have been schooled on its simple principles for generations: Identify aging, low-output wells and hit them with a blast of sand and water to bolster the flow of crude. The idea originated somewhere in the plains of the American Midwest, back in the 1950s. But as today’s engineers start applying the procedure to the horizontal wells that went up during the fracking boom that swept across U.S. shale fields over the past decade, something more powerful, more financially rewarding is happening. The short life span of these wells, long thought to be perhaps the single biggest weakness of the shale industry, is being stretched out. Early evidence of the effects of restimulation suggests that the fields could actually contain enough reserves to last about 50 years, according to a calculation based on Wood Mackenzie Ltd and ITG Investment Research data. Read More here 7 July 2015, Renew Economy, Network charges may penalise uptake of battery storage, as well as PV: The trend among some electricity networks to penalise or discourage the uptake of rooftop solar by imposing fixed tariffs or additional fees is now extending to battery storage, with one network accused of trying to lift charges to households with storage even though they are reducing peak demand. In an analysis of recent tariff proposals by South Australia Power Networks, which included a since-rejected attempt to apply a surcharge to solar households, the Australian PV Institute says SAPN now seems intent on penalising households that install battery storage, despite their obvious network benefits. “SAPN admit that batteries will reduce network peaks but still wish to charge PV households that install batteries as if they are increasing the peak,” the APVI, an independent institute, says in a newly released discussion paper. Read More here 13 April 2016, Inside Climate News, CO2’s Role in Global Warming Has Been on the Oil Industry’s Radar Since the 1960s. Historical records reveal early industry concern with air pollutants, including smog and CO2, and unwanted regulation. The oil industry’s leading pollution-control consultants advised the American Petroleum Institute in 1968 that carbon dioxide from burning fossil fuels deserved as much concern as the smog and soot that had commanded attention for decades. Carbon dioxide was “the only air pollutant which has been proven to be of global importance to man’s environment on the basis of a long period of scientific investigation,” two scientists from the Stanford Research Institute (SRI) told the API. This paper, along with scores of other publications, shows that the risks of climate change were being discussed in the inner circles of the oil industry earlier than previously documented. The records, unearthed from archives by a Washington, D.C. environmental law organization, the Center for International Environmental Law (CIEL), reveal that the carbon dioxide question—an obscure corner of research for much of the 20th century—had been closely studied since the 1950s by some oil company researchers. Read More here 13 April 2016, Vox, Why Peabody Energy, the world’s largest coal company, just went bankrupt. The US coal industry is imploding. And here’s the biggest casualty yet: Peabody Energy, the world’s largest private-sector coal company, filed for Chapter 11 bankruptcy in St. Louis on Wednesday. It’s hard to overstate what a seismic shift this is. Peabody has been a giant in the mining industry seemingly forever, after starting out in Chicago in 1880 with just a wagon and two mules. A decade ago, coal provided fully half of America’s electricity, much of it dug up by Peabody in Illinois, Kentucky, Wyoming, Colorado. At its peak in 2008, the company had a market cap of $20 billion, supplying coal to 26 countries worldwide. But then came the fall. The rise of fracking and cheap shale gas in the United States, coupled with stricter environmental regulations, has helped push hundreds of coal-fired power plants out of business in recent years. US coal production has nosedived from 1.17 billion metric tons in 2008 to just 752.5 million in 2016. Coal consumption in China, another crucial market, has also cooled off of late. Between 2012 and 2015, Peabody laid off more than 20 percent of its global workforceand started closing some of its US mines. Today, the company is saddled with $10.1 billion in debt and its future looks much bleaker than it once did. Hence the bankruptcy filing. Read More here 7 April 2016, Energy Post, Wind and solar’s Achilles heel: what the methane meltdown at Porter Ranch means for the energy transition. Utitlity-scale wind and solar power are typically backed up on-site by gas peakers, or backed up indirectly by gas-fired power plants. These gas plants lead to significant greenhouse gas emissions in the form of methane. So at what point does a renewable-plus-gas combination become worse for the climate than coal-fired power? Mike Conley and Tim Maloney, long-time members of the Thorium Energy Alliance, have calculated what they call a “Worth-It Treshold” that gives the answer. And they conclude as things stand, natural gas isn’t a bridge to a sustainable future.“We need about 3,000 feet of altitude, we need flat land, we need 300 days of sunlight, and we need to be near a gas pipe. Because for all of these big utility-scale solar plants – whether it’s wind or solar – everybody is looking at gas as the supplementary fuel. The plants that we’re building, the wind plants and the solar plants, are gas plants.” 1– Robert F. Kennedy, Jr. Environmental activist, Member of the board of Bright Source, developers of the Ivanpah Solar Station, Nevada, a 392 MW (peak) concentrated solar plant. Part One Natural Gas – the polite term for methane The methane leak in the Los Angeles suburb of Porter Ranch is America’s worst environmental disaster since the 2010 Deepwater Horizon oil spill in the Gulf of Mexico. But even more troubling is the larger issue of “fugitive” methane, and what it means for our growing reliance on wind and solar energy. Burning methane for energy produces about half the CO2 of coal, which is a good thing. But fugitive methane – the gas that leaks before it can be burned – is a powerful greenhouse gas, with 84X the Global Warming Potential (GWP) of CO2. The big idea behind wind and solar farms is to fight global warming by reducing greenhouse gases. But since most of a farm’s power is actually generated by gas, the rationale for a massive build-out of utility-scale wind and solar hinges on the issue of fugitive methane. That rationale just had a major meltdown at Porter Ranch. Read More here 3 April 2016, The Guardian, Adani’s Carmichael coalmine leases approved by Queensland. Decision a major step forward for $21.7bn coalmine, which green groups warn will fuel global warming and compound threats to Great Barrier Reef. The Queensland government has granted three mining leases for Adani’s multi-billion dollar Carmichael coalmine, which will be the largest in Australia. Environmental groups say the mine will fuel global warming and compound threats to the world heritage-listed Great Barrier Reef amid one of its worst coral bleaching events on record. The premier, Annastacia Palaszczuk, and the mines minister, Anthony Lynham, made the announcement in Mackay on Sunday. The premier put the value of the project at $21.7bn, and said the approvals meant thousands of new jobs were now a step closer to reality. “Some approvals are still required before construction can start, and ultimately committing to the project will be a decision for Adani,” Palaszczuk said. “However, I know the people of north and central Queensland will welcome this latest progress for the potential jobs and economic development it brings closer for their communities.” She said stringent conditions would ensure the health of the reef and the environment, and the interests of traditional owners. Read More here 19 August The Guardian: Australia Institute says claim Australia is only responsible for 1.2% of emissions hides real contribution to climate crisis. Australia’s role as a leader in the global fossil fuel trade is underscored by a report that finds it is the world’s third biggest exporter and fifth biggest miner of fossil-related emissions. While political debate sometimes emphasises that Australia is responsible for 1.2% of global emissions at home, the analysis by progressive thinktank the Australia Institute says it trails only Russia and Saudi Arabia in exporting fossil fuels. When exports and what is burned at home are combined, Australia ranks fifth behind China, the US, Russia and Saudi Arabia in responsibility for carbon dioxide from extractive fossil industries. The premise of the report – that Australia plays a greater role in the climate crisis than global greenhouse accounting rules suggest – is not new, but it goes further than some previous analyses in comparing exports emissions from different countries. Its release follows the prime minister, Scott Morrison, facing criticism at the Pacific Islands Forum in Tuvalu over Australia’s limited response to the climate crisis and refusal to commit to a rapid transition away from coal. The government and opposition both stress the importance of the coal export industry to the economy and employment. The institute’s report, by the senior researcher Tom Swann, challenges this, finding Australia’s economy is more diverse and less reliant on fossil fuels than that of most carbon exporters. Access more here 26 July 2019, The Guardian, Amazon deforestation accelerating towards unrecoverable ‘tipping point’. Deforestation of the Brazilian Amazon has surged above three football fields a minute, according to the latest government data, pushing the world’s biggest rainforest closer to a tipping point beyond which it cannot recover. The sharp rise – following year-on-year increases in May and June – confirms fears that president Jair Bolsonaro has given a green light to illegal land invasion, logging and burning. Clearance so far in July has hit 1,345 sq km, a third higher than the previous monthly record under the current monitoring system by the Deter B satellite system, which started in 2015. With five days remaining, this is on course to be the first month for several years in which Brazil loses an area of forest bigger than Greater London. Access more here 25 July 2019, Reuters: Climate records fall as Europe bakes in heatwave. Soaring temperatures broke records in Germany, France, Britain and the Netherlands on Thursday, as a heatwave gripped Europe for the second time in a month in what scientists said were becoming more frequent events as the planet heats up. As a cauldron of hot air from the Sahara desert moved across the continent, drawn northwards by high pressure, Paris saw its highest temperature since records began and Britain reported its hottest weather for the month of July. An all-time high was measured in Germany for a second day running, at 41.5 degrees Celsius (106.7 degrees Fahrenheit) in the northwestern town of Lingen – similar temperatures to those in some Gulf Arab capitals on Thursday. The unusual conditions brought a reduction in French and German nuclear power output, disrupted rail travel in parts of Britain and sent some Europeans, not habitual users of air conditioning in their homes, out to the shops in search of fans. Access more here 10 July 2019, Renew Economy : Putin mocks wind turbines, says they shake worms out of the ground. Russia president Vladimir Putin has more in common with US president Donald Trump than we thought: Both have an apparent dislike of wind turbines, and appear believe what is fed to them by some extreme anti-wind blogs. Putin this week chose a manufacturing and industrialisation conference in the industrial city of Yekaterinburg, located in Russia’s most polluted region of Sverdlovsk, to launch an extraordinary attack against wind energy. “Will it be comfortable for people to live on a planet with a palisade of wind turbines and several layers of solar panels?” Putin asked…… At least, however, Putin appears to have changed his tune on the impacts of climate change – at least to a degree. Having previously pointed to the benefits of a warming climate in a country with such a severe winter, Putin’s government now concedes that “global climatic changes are taking place in the world, which have a rather significant effect on economic issues”. It notes that “advanced countries are gradually switching to a low-carbon development model by continuously monitoring and encouraging a reduction in greenhouse gas emissions in various sectors.” Access more here 3 November 2020, Carbon Brief: Hydrogen gas has long been recognised as an alternative to fossil fuels and a potentially valuable tool for tackling climate change. Now, as nations come forward with net-zero strategies to align with their international climate targets, hydrogen has once again risen up the agenda from Australia and the UK through to Germany and Japan. In the most optimistic outlooks, hydrogen could soon power trucks, planes and ships. It could heat homes, balance electricity grids and help heavy industry to make everything from steel to cement. But doing all these things with hydrogen would require staggering quantities of the fuel, which is only as clean as the methods used to produce it. Moreover, for every potentially transformative application of hydrogen, there are unique challenges that must be overcome. In this in-depth Q&A – which includes a range of infographics, maps and interactive charts, as well as the views of dozens of experts – Carbon Brief examines the big questions around the “hydrogen economy” and looks at the extent to which it could help the world avoid dangerous climate change. Access full article here Fossil fuel emissions have stalled 14 November 2016, The Conversation, Fossil fuel emissions have stalled: Global Carbon Budget 2016. For the third year in a row, global carbon dioxide emissions from fossil fuels and industry have barely grown, while the global economy has continued to grow strongly. This level of decoupling of carbon emissions from global economic growth is unprecedented.Global CO₂ emissions from the combustion of fossil fuels and industry (including cement production) were 36.3 billion tonnes in 2015, the same as in 2014, and are projected to rise by only 0.2% in 2016 to reach 36.4 billion tonnes. This is a remarkable departure from emissions growth rates of 2.3% for the previous decade, and more than 3% during the 2000’s. Read More here Do you want to understand the complexity of energy systems which support our high consumption lifestyles? Most people don’t give too much thought to where their electricity comes from. Flip a switch, and the lights go on. That’s all. The origins of that energy, or how it actually got into our homes, is generally hidden from view. This link will take you to 11 maps which explain energy in America (it is typical enough as an example of a similar lifestyle as Australia – when I find maps for Oz I’ll add them in) e.g. above map showing the coal plants in the US. Source: Vox Explainers Mapped: how Germany generates its electricity – another example Power to the People – Lock the Gate looks back at the wins of 2015 And there’s lots more coming up in 2016. Some of the big priorities coming up next for the “Lock the Gate” movement are: If you want to give “Lock the Gate” your support – go here for more info This new report reveals that the pollution from Australia’s coal resources, particularly the enormous Galilee coal basin, could take us two-thirds of the way to a two degree rise in global temperature. To Read More and download report The 2006 UK government commissioned Stern Commission Review on the Economics of Climate Change is still the best complete appraisal of global climate change economics. The review broke new ground on climate change assessment in a number of ways. It made headlines by concluding that avoiding global climate change catastrophe was almost beyond our grasp. It also found that the costs of ignoring global climate change could be as great as the Great Depression and the two World Wars combined. The review was (still is) in fact a very good assessment of global climate change, which inferred in 2006 that the situation was a global emergency. Read More here The Garnaut Climate Change Review was commissioned by the Commonwealth, state and territory governments in 2007 to conduct an independent study of the impacts of climate change on the Australian economy. Prof. Garnaut presented The Garnaut Climate Change Review: Final Report to the Australian Prime Minister, Premiers and Chief Ministers in September 2008 in which he examined how Australia was likely to be affected by climate change, and suggested policy responses. In November 2010, he was commissioned by the Australian Government to provide an update to the 2008 Review. In particular, he was asked to examine whether significant changes had occurred that would affect the analysis and recommendations from 2008. The final report was presented May 2011. Since then the Professor has regularly participated in the debate of fossil fuel reduction, as per his latest below: To access his reports; interviews; submissions go here 27 May 2015, Renew Economy, Garnaut: Cost of stranded assets already bigger than cost of climate action. This is one carbon budget that Australia has already blown. Economist and climate change advisor Professor Ross Garnaut has delivered a withering critique of Australia’s economic policies and investment patterns, saying the cost of misguided over-investment in the recent mining boom would likely outweigh the cost of climate action over the next few decades. Read More here Live generation of electricity by fuel type Fossil Fuel Subsidies – The Age of entitlement continues 24 June 2014, Renew Economy, Age of entitlement has not ended for fossil fuels: A new report from The Australia Institute exposes the massive scale of state government assistance, totalling $17.6 billion over a six-year period, not including significant Federal government support and subsidies. Queensland taxpayers are providing the greatest assistance by far with a total of $9.5 billion, followed by Western Australia at $6.2 billion. The table shows almost $18 billion dollars has been spent over the past 6 years by state governments, supporting some of Australia’s biggest, most profitable industries, which are sending most of the profits offshore. That’s $18 billion dollars that could have gone to vital public services such as hospitals, schools and emergency services. State governments are usually associated with the provision of essential services like health and education so it will shock taxpayers to learn of the massive scale of government handouts to the minerals and fossil fuel industries. This report shows that Australian taxpayers have been misled about the costs and benefits of this industry, which we can now see are grossly disproportionate. Each state provides millions of dollars’ worth of assistance to the mining industry every year, with the big mining states of Queensland and Western Australia routinely spending over one billion dollars in assistance annually. Read More here – access full report here What is fossil fuel divestment? Local Governments ready to divest Aligning Council Money With Council Values A Guide To Ensuring Council Money Isn’t Funding Climate Change. 350.org Australia – with the help of the incredible team at Earth Hour – has pulled together a simple 3-step guide for local governments interested in divestment. The movement to align council money with council values is constantly growing in Australia. It complements the existing work that councils are doing to shape a safe climate future. It can also help to reshape the funding practices of Australia’s fossil fuel funding banks. The steps are simple. The impact is huge.The guide can also be used by local groups who are interested in supporting their local government to divest as a step-by-step reference point. Access guide here How coal is staying in the ground in the US Sierra Club Beyond Coal Campaign May 2015, Politico, Michael Grunwald: The war on coal is not just political rhetoric, or a paranoid fantasy concocted by rapacious polluters. It’s real and it’s relentless. Over the past five years, it has killed a coal-fired power plant every 10 days. It has quietly transformed the U.S. electric grid and the global climate debate. The industry and its supporters use “war on coal” as shorthand for a ferocious assault by a hostile White House, but the real war on coal is not primarily an Obama war, or even a Washington war. It’s a guerrilla war. The front lines are not at the Environmental Protection Agency or the Supreme Court. If you want to see how the fossil fuel that once powered most of the country is being battered by enemy forces, you have to watch state and local hearings where utility commissions and other obscure governing bodies debate individual coal plants. You probably won’t find much drama. You’ll definitely find lawyers from the Sierra Club’s Beyond Coal campaign, the boots on the ground in the war on coal. Read More here Oil – conventional & unconventional May 2015, Oil change International Report: On the Edge: 1.6 Million Barrels per Day of Proposed Tar Sands Oil on Life Support. The Canadian tar sands is among the most carbon-intensive, highest-cost sources of oil in the world. Even prior to the precipitous drop in global oil prices late last year, three major projects were cancelled in the sector with companies unable to chart a profitable path forward. Since the collapse in global oil prices, the sector has been under pressure to make further cuts, leading to substantial budget cuts, job losses, and a much more bearish outlook on expansion projections in the coming years. Read full report here. For summary of report USA Sierra Club Beyond Oil Campaign Coal Seam Gas battle in Australia Lock the Gate Alliance is a national coalition of people from across Australia, including farmers, traditional custodians, conservationists and urban residents, who are uniting to protect our common heritage – our land, water and communities – from unsafe or inappropriate mining for coal seam gas and other fossil fuels. Read more about the missions and principles of Lock the Gate. Access more Lock the Gate videos here. Access Lock the Gate fact sheets here 2014: Parliament of Victoria Research Paper: Unconventional Gas: Coal Seam Gas, Shale Gas and Tight Gas: This Research Paper provides an introduction and overview of issues relevant to the development of unconventional gas – coal seam, shale and tight gas – in the Australian and specifically Victorian context. At present, the Victorian unconventional gas industry is at a very early stage. It is not yet known whether there is any coal seam gas or shale gas in Victoria and, if there is, whether it would be economically viable to extract it. A moratorium on fracking has been in place in Victoria since August 2012 while more information is gathered on potential environmental risks posed by the industry. The parts of Victoria with the highest potential for unconventional gas are the Gippsland and Otway basins. Notably, tight gas has been located near Seaspray in Gippsland but is not yet being produced. There is a high level of community concern in regard to the potential impact an unconventional gas industry could have on agriculture in the Gippsland and Otway regions. Industry proponents, however, assert that conventional gas resources are declining and Victoria’s unconventional gas resources need to be ascertained and developed. Read More here 28 January 2015, ABC News, Coal seam gas exploration: Victoria’s fracking ban to remain as Parliament probes regulations: A ban on coal seam gas (CSG) exploration will stay in place in Victoria until a parliamentary inquiry hands down its findings, the State Government has promised. There is a moratorium on the controversial mining technique, known as fracking, until the middle of 2015. The Napthine government conducted a review into CSG, headed by former Howard government minister Peter Reith, which recommended regulations around fracking be relaxed. Labor was critical of the review, claiming it failed to consult with farmers, environmental scientists and local communities. Read more here Keep up to date and how you can be involved here Friends of the Earth Melbourne Coal & Gas Free Victoria 20 May 2015, FoE, Inquiry into Unconventional Gas: Check here for details on the Victorian government’s Inquiry into unconventional gas. The public hearings have not yet started, however the Terms of Reference have been released. The state government’s promised Inquiry into Unconventional Gas has now been formally announced, with broad terms of reference (TOR). FoE’s response to the TOR is available here. The Upper House Environment and Planning Committee will manage the Inquiry. You can find the Inquiry website here. The final TOR will be determined by the committee. Significantly, it is a cross party committee. The Chair is a Liberal (David Davis), and there is one National (Melinda Bath), one Green (Samantha Dunn), three from the ALP (Gayle Tierney, Harriet Shing, Shaun Leane), an additional MP from the Liberals (Richard Dalla-Riva), and one MP from the Shooters Party (Daniel Young). Work started by the previous government, into water tables and the community consultation process run by the Primary Agency, will be released as part of the inquiry.The moratorium on unconventional gas exploration will stay in place until the inquiry delivers its findings. The interim report is due in September and the final report by December. There is the possibility that the committee will amend this timeline if they are overwhelmed with submissions or information. Parliament will then need to consider the recommendations of the committee and make a final decision about how to proceed. This is likely to happen when parliament resumes after the summer break, in early 2016. Quit Coal is a Melbourne-based collective that campaigns against the expansion of the coal and unconventional gas industries in Victoria. Quit Coal uses a range of tactics to tackle this problem. We advise the broader Victorian community about plans for new coal and unconventional gas projects, we put pressure on our government to stop investing in these projects, and we help to inform and mobilise Victorian communities so they can campaign on their own behalf. We focus on being strategic, creative, and as much as possible, fun! The above screen shot is of the Victorian State government’s Mining Licences Near Me site. Go to this link to see what is happening in your area Environment Victoria’s campaign CoalWatch is an interactive resource that tracks the coal industry’s expansion plans and helps builds a movement to stop these polluting developments. CoalWatch provides a way for everyday Victorians to keep track of the coal industry’s ambitious expansion plans. To check what tax-payer money has been pledged to brown coal projects and the coal projects industry is spruiking to our politicians. Here’s another map via EV website (go to their website and you should be able to get better detail from Google Maps: Red areas: Exploration licences (EL). These areas are held by companies to undertake exploration activity. A small bond is held by government in case of any damage. If a company wants to progress the project it needs to obtain a mining licence. Exploration Licence applications are marked with an asterix in the Places Index eg. EL4684*. Yellow areas: Mining Licences (MIN). A mining licence is granted with the expectation that mining will occur. A larger bond is paid to government. Green areas: Exploration licences that have been withdrawn or altered due to community concern. Green outline: Existing mines within Mining Licences. Purple areas: Geological Carbon Storage Exploration areas for carbon capture and storage. On-shore areas have been released by the State Government, while off-shore areas have been released by the Federal Government. The Coal Watch wiki tracks current and future Victorian coal projects, whether they are power stations, coal mines, proposals to export coal or some other inventive way of burning more coal. To get the full picture of coal in Victoria visit our wiki page. Get more info and see the full list of Exploration Licences current at 17 August 2012 here August 2015, Institute for Energy Economics & Financial Analysis – powerpoint: Changing Dynamics in the Global Seaborne Thermal Coal Markets and Stranded Asset Risk. Information from one of the slides follows. To view full presentation go here Economic Implications for Australia 83% of Australian coal mines are foreign owned, hence direct leverage of fossil fuels to the ASX is relatively small at 1-2%. However, for Australia the exposure is high, time is needed for transition and the new industry opportunities are significant: 1. Energy Infrastructure: Australia spends $5-10bn pa on electricity / grid sector, much of it a regulated asset base that all ratepayers fund much of it stranded. BNEF estimate of Australia’s renewable energy infrastructure investment for 2015-2020 was cut 30% from A$20bn post RET. Lost opportunities. 2. Direct employment: The ABS shows a fall of ~20k from the 2012 peak of 70K from coal mining across Australia, and cuts are ongoing. Indirect employment material. 3. Terms of trade: BZE estimates the collapse in the pricing of iron ore, coal and LNG cuts A$100bn pa from Australia’s export revenues by 2030, a halving relative to government budget estimates of 2013/14. Coal was 25% of NSW’s total A$ value of exports in 2013/14 (38% of Qld). Australia will be #1 globally in LNG by 2018. 4. The financial sector: is leveraged to mining and associated rail port infrastructure. WICET 80% financed by banks, mostly Australian. Adani’s Abbot Point Port is foreign owned, but A$1.2bn of Australian sourced debt. Insurance firms and infrastructure funds are leveraged to fossil fuels vs little RE infrastructure assets. BBY! 5. Rehabilitation: $18bn of unfunded coal mining rehabilitation across Australia. 6. Economic growth: curtailed as Australia fails to develop low carbon industries. In-depth Q&A: Does the world need hydrogen to solve climate change?
3 May 2016, Carbon Brief, The global coal trade doubled in the decade to 2012 as a coal-fueled boom took hold in Asia. Now, the coal trade seems to have stalled, or even gone into reverse. This change of fortune has devastated the coal mining industry, with Peabody – the world’s largest private coal-mining company – the latest of 50 US firms to file for bankruptcy. It could also be a turning point for the climate, with the continued burning of coal the biggest difference between business-as-usual emissions and avoiding dangerous climate change. Carbon Brief has produced a series of maps and interactive charts to show how the global coal trade is changing. As well as providing a global overview, we focus on a few key countries: Read More here/cdn0.vox-cdn.com/uploads/chorus_asset/file/3915730/EIA%20coal%20power%20plants.png)
21 April 2015, Climate Council, Will Steffen: Unburnable Carbon: Why we need to leave fossil fuels in the ground.Stern Commission Review
Australia’s Garnaut Review
November 2014 – The Fossil Fuel Bailout: G20 subsidies for oil, gas and coal exploration report: Governments across the G20 countries are estimated to be spending $88 billion every year subsidising exploration for fossil fuels. Their exploration subsidies marry bad economics with potentially disastrous consequences for climate change. In effect, governments are propping up the development of oil, gas and coal reserves that cannot be exploited if the world is to avoid dangerous climate change. This report documents, for the first time, the scale and structure of fossil fuel exploration subsidies in the G20 countries. The evidence points to a publicly financed bailout for carbon-intensive companies, and support for uneconomic investments that could drive the planet far beyond the internationally agreed target of limiting global temperature increases to no more than 2ºC. It finds that, by providing subsidies for fossil fuel exploration, the G20 countries are creating a ‘triple-lose’ scenario. They are directing large volumes of finance into high-carbon assets that cannot be exploited without catastrophic climate effects. They are diverting investment from economic low-carbon alternatives such as solar, wind and hydro-power. And they are undermining the prospects for an ambitious climate deal in 2015. Access full report here For the summary on Australia’s susidisation of it’s fossil fuel industry go to page 51 of the report. The report said that the United States and Australia paid the highest level of national subsidies for exploration in the form of direct spending or tax breaks. Overall, G20 country spending on national subsidies was $23 billion. In Australia, this includes exploration funding for Geoscience Australia and tax deductions for mining and petroleum exploration. The report also classifies the Federal Government’s fuel rebate program for resources companies as a subsidy.
