Antinuclear

Australia must adapt to changes in global energy sector, or fail economically

Changes in the global energy sector as well as in the global climate are underway, whether Australian policymakers like it or not, and Australia must adapt.

Opportunities beyond the Australian Energy White Paper, Nautilus Institute  by Samantha Mella and Geoff James 8 June 2015

I. INTRODUCTION

Samantha Mella and Geoff James write “The (Australian Energy) White Paper’s framework of competition, productivity and investment provides a good platform for discussion, but a number of important issues are not addressed. These include the development of Australia’s abundant renewable energy resources, the consideration of carbon constraints, the growth in renewable energy investment overseas compared to a decline in Australia, and the potential impacts of the fossil fuel divestment movement.”

“Australia’s future prosperity is [best] served by the development of a vital, healthy renewable energy sector that competes alongside fossil fuels in a fair and open energy market.”

POLICY FORUM BY SAMANTHA MELLA AND GEOFF JAMES

Opportunities beyond the Australian Energy White Paper

Australia’s Energy White Paper released in April focused on the development of fossil fuels in Australia’s domestic and export energy markets. The paper has been well received by the mineral and resources sector and some industry groups, while others have expressed dismay in its treatment of Australia’s energy and environmental future.[1] [2] The White Paper’s framework of competition, productivity and investment provides a good platform for discussion, but a number of important issues are not addressed. These include the development of Australia’s abundant renewable energy resources, the consideration of carbon constraints, the growth in renewable energy investment overseas compared to a decline in Australia, and the potential impacts of the fossil fuel divestment movement.

The White Paper states “Australia’s energy sector underpins a modern economy and a high standard of living[3]”. This statement goes to the heart of Australia’s anxiety about the low-carbon economy. The tension between Australian energy exports and its domestic energy markets on one hand, and required action to reduce greenhouse gas emissions on the other, has plagued and paralysed successive Australian governments. The 2012 Energy White Paper, authored by the previous Labour government, also focused on fossil fuels, although that government did introduce some domestic reforms such as the Clean Energy Finance Corporation and carbon pricing. On energy exports, their importance to Australia’s economy is such that there has been bipartisan support for the ‘business as usual’ approach expressed in the White Paper. Indeed, Australian energy exports accounted for $71.5 billion in 2013-2014[4], and 7% of Gross Domestic Product (GDP). Addressing or replacing the income accounted for by those exports is a significant issue for discussion.

This paper discusses the opportunities for the evolution of the Australian energy sector beyond those expressed in the White Paper, within the Paper’s framework. Australia is blessed with an abundance of diverse energy resources. We argue that a single-minded focus on fossil fuels is not in the national interest, in the short, medium, or long term. Rather, Australia’s future prosperity is better served by the development of a vital, healthy renewable energy sector that competes alongside fossil fuels in a fair and open energy market………..

Conclusion

The foundations of the 2015 Energy White Paper – competition, productivity and investment – have the potential secure a prosperous energy sector for Australia. The biggest threat to Australia’s future prosperity is Australia’s failure to develop its renewable resources due to policy decisions designed to protect the fossil fuel production sector.

It is well established in evolutionary science that an inability to adapt to change leads to extinction. Changes in the global energy sector as well as in the global climate are underway, whether Australian policymakers like it or not, and Australia must adapt. A vibrant and robust renewable energy sector in Australia is an intelligent future focussed strategy that will both improve productivity and attract investment. Australia must investigate ways to export renewable energy, including participating in the Asian Super Grid when it comes to fruition. Real competition, productivity and creating a stable investment environment for all energy investors will allow Australia to claim its fair share of the global growth in renewable investment and make Australia’s energy sector diverse, resilient and strong. http://nautilus.org/napsnet/napsnet-policy-forum/opportunities-beyond-the-australian-energy-white-paper/

June 10, 2015 - Posted by Christina Macpherson | AUSTRALIA - NATIONAL, energy