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News.com.au
14 hours ago
- Business
- News.com.au
‘You're a joke': Ugly row on Australia's future after Labor's major energy call
A potentially nation-changing series of moves from the newly-elected Albanese government have caused a huge divide — with irate pollies taking increasingly hostile shots at each other over the plans. Labor has long positioned itself as a champion in the push towards renewables — with a target to hit net zero emissions by 2050 being approved by voters as part of its mandate following a landslide victory this month. But it has become clear this week that we, as a nation at least, are nowhere near done with fossil fuels just yet. On Wednesday, Labor approved the extension of Australia's largest gas plant by a massive 40 years — some 20 years beyond the net zero deadline. Newly appointed Environment Minister Murray Watt made the call to grant approval for Woodside's North West Shelf extension in Western Australia's Pilbara — allowing the company to extend production and supply the domestic market until 2070. The move was met with anger from environmental groups, the Greens and even two Pacific island nations who accused Australia of putting their very survival at risk. With a sweeping mandate to impose his vision of Australia's future and what its energy mix will look like, the Prime Minister is reportedly looking to take further action to back gas as time goes on. In what would be another major move, energy industry sources told the AFR on Friday Labor is likely to consider developing an east coast gas reservation, amid escalating concerns of a future gas shortage in the eastern states. The report caused a serious blow-up on Friday when Nationals senator Bridget McKenzie and independent MP Zali Steggall clashed during a Sky News panel. Senator McKenzie was supportive of the idea while Ms Steggall had serious concerns. She said while the government should prioritise gas for domestic markets and industrial markets, new reserves would accelerate global warming. Senator McKenzie then interrupted: 'So Zali doesn't clearly care about prices, she doesn't care about keeping manufacturing and industrial jobs here at home … 'The people that Zali represents are very affluent people in the heart of Sydney. They don't have to wash their clothes, wash their faces when they come home from work after a heavy day.' Ms Steggall was clearly incensed by the interjection. 'You have no credibility, Bridget. You are such a joke. I mean seriously. I'm talking about regional communities facing drought,' she said. 'I'm talking about regional communities facing floods and all you want to do is keep accelerating and increasing the problem.' 'Australians recognise this to be unfair' The decision to extend the life of the North West Shelf — Australia's largest and longest-running liquefied natural gas (LNG) development — is a huge call for the Albanese government. It was twice delayed by former Minister Tanya Plibersek in Labor's first term, but unions and business groups have expressed relief after the extension was given the green light this week. The project has been at the centre of the nation's energy sector for over four decades, supplying both domestic and international markets Any Aussie who has seen their power bills rise over the past few years won't be comforted to know that the majority of the gas being produced at the North West Shelf project is sent overseas, primarily to key markets in the Asia-Pacific region like Japan, South Korea and China. The project also supplies natural gas to Western Australia's domestic market. This has been governed by a domestic gas reservation policy, mandating the equivalent to 15 per cent of its LNG exports be set aside for domestic use. However, there could be changes afoot on this issue too as Resources Minister Madeleine King said this week it was unfair Australians paid high prices for gas while many of the country's supplies were exported. 'It is as clear as day to everyone who cares to listen that Australians are tired of seeing our vast gas resources exported overseas while simultaneously paying some of the highest gas prices in the developed world,' she told the Australian Energy Producers Conference in Brisbane. 'Australians recognise this to be unfair. 'But there remains a lot of work to do to ensure the domestic market remains well supplied. 'A well-supplied domestic gas market at a reasonable price is fundamental to the social licence of this industry to operate.' She flagged the government may review gas market policy, potentially meaning more of it could be used here in Australia. One way to leverage this could be state-based gas reservation schemes — which are already in place for the nation's biggest gas exporters Queensland and Western Australia — for the eastern states. Labor's big move on gas is being seen by some as proof the Albanese government's position had changed in a matter of months, and that it is taking its mandate for change seriously. After a crushing landslide victory, it is unshackled by the minor parties and Teals — potentially meaning it can make more radical reforms. 'The language within the Labor Party has changed substantially over the course of the last year,' Former Labor minister Joel Fitzgibbon told the Australian Energy Producers conference in Brisbane on Thursday. 'The decision of the North West Shelf yesterday is a clear indicator that Anthony Albanese has taken charge of this area of policy – maybe for the right reasons, but he has interest groups too [in this area], unions for example.' 'Slap in the face': Nations furious with Australia Despite some praise, the call on the North West Shelf project has not been met warmly with some sections of the population, or some nations for that matter. Tuvalu, a nation in the Pacific with a population of just shy of 10,000, has warned against approving the project — saying its survival is at stake. Its Climate Minister Maina Talia said the North West Shelf extension 'would lock in emissions until 2070, threatening our survival' and undermine Australia's chances at hosting the next global climate conference in 2026 in partnership with Pacific nations. Meanwhile Vanuatu's climate minister said he is devastated by the Australian government's decision. Vanuatu's Minister for Climate Change Ralph Regenvanu said that the extension of the project is 'a slap in the face for Pacific Island countries who have repeatedly called on Australia to stop approving new fossil fuel projects'. He continued to say that the approval 'severely undermines our national security and sabotages our future. The single greatest thing the Australian Labor government could do to protect our region is to stop opening new coal and gas projects'. 'See you in court' Local Indigenous groups have also reacted with fury — claiming the extension puts the ancient rock art of Murujuga, which is adjacent to Woodside's Karratha Gas Plant on the Burrup peninsula, at risk. Mardathoonera woman Raelene Cooper, a custodian of Murujuga and a former chair of the Murujuga Aboriginal Corporation, had a simple response to Senator Watt's green light for Woodside. 'See you in court,' she said. 'I'm not on my own, I'm bringing warriors from this ngurra (Country) with me.' Senator Watt said in making his proposed decision, he had considered 'the potential impacts of extending the life of the plant on the national heritage values of nearby ancient rock art' and 'economic and social matters concerning the proposed development'. 'Based on the evidence before me and the Department's recommendations, my proposed decision is subject to strict conditions,' he said. Mr Watt said the impact of air emissions on the Murujuga rock art that forms part of the Dampier Archipelago was considered as part of the process. 'I have ensured that adequate protection for the rock art is central to my proposed decision,' he said. Woodside has 10 business days to make additional comment before a final decision is made. 'While this process is ongoing, I will not be making further comment,' Mr Watt said. 'Failed again': Greens blow up The opposition welcomed the announcement, while Greens Senator Sarah Hanson-Young said the Albanese government had 'failed again'. 'It seems they have learnt nothing from the last parliament where they continue to approve new coal and gas mines, only to now approve a pollution bomb that is worse than all of the others put together,' she told ABC. Woodside said the proposed approval would support thousands of jobs and supply 'reliable and affordable energy to Western Australia'. The North West Shelf Project has supplied more than 6000 petajoules of domestic gas, powering homes and industry in Western Australia, the company said — enough energy to power homes in a city the size of Perth for approximately 175 years. Environmental groups estimate the project will result in 4.3 billion tons of greenhouse gas emissions over its lifetime. 'Since starting operations in 1984, the North West Shelf Project has paid over $40 billion in royalties and taxes and supported regional development opportunities in the Pilbara,' Woodside executive vice president and chief operating officer Australia Liz Westcott said in a statement. Woodside, the country's largest oil and gas producer, added it remained committed to protecting the Murujuga sites and supported its World Heritage nomination. The North West Shelf decision came on the same day UNESCO knocked back Australia's bid to have the rock art, believed to be up to 50,000 years old, added to the World Heritage List. The state government environmental approval, granted in 2024, includes a commitment from Woodside for a 'significant reduction in air emissions and measures to manage greenhouse gas emissions and to reduce them over time', and to comply with air quality objectives and standards arising from the Murujuga Rock Art Monitoring Program. Business groups and unions also supported the call. 'The reality is that we do need more gas, and we need it for a variety of reasons,' Business Council chief executive Bran Black told ABC Radio on Thursday. 'Of course, we need it for the purposes of our own energy transition, it's a critical transitional fuel source, but we also need it to support our friends and our allies overseas that have needs of their own in the course of their own energy transition. So that is an important thing, and this project very much contributes to that.' Mr Black added that the process had highlighted the need to speed up environmental approvals at the federal level for major projects. 'That's not to say that we want to try and cut corners, indeed, we think it's critical that these types of processes appropriately balance up environmental, social and economic considerations, but at the end of the day, we've got to be able to deliver greater certainty,' he said. He stressed that the Business Council remained committed to net zero by 2050. Australian Workers' Union national secretary Paul Farrow said the announcement 'correctly prioritises and secures the future of well paid union jobs in WA and secures supply of a crucial transition fuel we need as more renewable energy sources like wind and solar come online'. 'Today's decision to maintain a stable, operational project employing well over a thousand hydrocarbons workers in well-paid jobs is a victory for common sense and allows our members to continue their important work for years to come,' he said on Wednesday. 'Although most of the gas produced by the NWS Project is sent overseas, the project also provides a significant amount of gas domestically. Western Australians, from Broome to Bunbury, can now continue to rely upon this essential fuel into the future.' The decision is likely to be challenged. Greenpeace said it was a 'terrible decision'. Senator Watt last week formally rejected concerns raised by environmental groups, including Greenpeace, about the North West Shelf extension, clearing the way for final approval. Environmental groups have raised concerns about the potential impact on Scott Reef, which is home to threatened species such as pygmy blue whales and green sea turtles. 'The North West Shelf facility is one of Australia's dirtiest and most polluting fossil fuel projects,' Greenpeace Australia Pacific chief executive David Ritter said. 'This approval brings Woodside's toxic gas plans closer to Scott Reef, holds back the clean energy transition underway in WA, and fuels growing climate damage in Australia and around the world.' The Climate Council said the project marked the Albanese government's 27th coal, oil or gas approval since taking office. 'Peter Dutton promised to approve this project before the last election. Voters rejected Dutton,' Climate Council CEO Amanda McKenzie said. 'Why would the Albanese Government take Dutton's lead on climate policy? Approving the North West Shelf extension leaves a polluting stain on Labor's climate legacy. Australians voted for a renewable-powered future, not more climate pollution and destruction.'


The Guardian
20 hours ago
- Business
- The Guardian
Sussan Ley wants to keep the Coalition together – but caving on net zero won't help her win back seats
After another scrappy week for the faltering Coalition, Bridget McKenzie on Thursday called for the National party to stop talking about itself. No sane observer of politics since the 3 May election could disagree, but the party's Senate leader made the observation in an awkward setting: a Sky News interview. While they were tearing up their alliance with the Liberals, then attempting a patch-up job with the opposition leader, Sussan Ley, senior Nationals appeared dozens of times on TV and radio. The immediate stakes are low. Labor just won a thumping majority and any return to government for the Coalition is unlikely before 2031, at the earliest. Whether the new frontbench survives or if the two parties can stick together at all remains an open question. But McKenzie and her party's leaders are doing their best to remind voters why the Coalition was so thoroughly rejected in the first place. Publicly and privately, the Nationals continue to fight over whether to hold fast to the goal of reaching net zero carbon emissions by 2050. They agreed to that target in 2021, despite strong internal opposition. Those negotiations saw the party secure an additional spot in Scott Morrison's cabinet. But without strong leadership now, the support appears a lot less secure. Consider last Sunday alone. The Nationals leader, David Littleproud, appeared on Sky just after 8am. Asked whether net zero would remain a Nationals position, he said governments around the world were reconsidering. Get Guardian Australia environment editor Adam Morton's Clear Air column as an email Net zero by 2050 remained party policy for now, but Littleproud promised 'further discussions'. 'What the world is starting to understand is it's very difficult to get there, but we shouldn't give up on trying to reduce emissions,' he said. Less than an hour later, the deputy leader, Kevin Hogan, was on ABC TV. 'The Nationals support net zero [by] 2050,' he declared, stressing the policy was settled seven years ago and 'that's not up for review or being changed'. Within minutes, their Queensland colleague Matt Canavan was appearing on Sky, contradicting Hogan. 'There is a willingness to open this up. There's a question about when and how we do that,' he said. Canavan has even released animated videos styling himself as a 'dark Nat' out to fight net zero and the woke left. The former Nationals leaders Michael McCormack and Barnaby Joyce both oppose net zero, with the latter calling it 'a great scam' this week. It's clear the Nationals are failing on net zero on style and substance. The pledge is the lowest common denominator of action to stem the damage being wrought by climate change, an emergency the CSIRO warns will deliver Australia increasing temperatures, declining rainfall, more drought and dangerous fire days, further sea level rises, species loss, more frequent and severe bleaching events in coral reefs, and increased natural disasters driven by wild weather. As well as deadly flooding in New South Wales in the past fortnight, a toxic microalgae bloom off the South Australian coast this month has seen sharks and other marine life washing up along popular beaches. Overseas, the Swiss village of Blatten was almost entirely destroyed this week when thousands of tonnes of mud and ice fell from a collapsing glacier. Research published on Friday in the journal Science found almost 40% of glaciers are already doomed to melt due to emissions from fossil fuels. Set to put millions of lives at risk and wreak havoc with food supplies, the melt would drop by 50% if the Paris climate agreement's target of limiting global heating to a 1.5C target can be achieved. But the more dangerous test of net zero credibility rests with Ley. The former environment minister was asked on Wednesday if net zero policies were under review within the wider Coalition. She said the discussion would take place behind closed doors, led by the newly appointed shadow energy and emissions minister, Dan Tehan. 'We have to play, as a country, our part in the global response to climate change. Net zero, Paris targets, gas, all of the resources, conversations around critical minerals, they're all part of that,' Ley said. Sign up to Clear Air Australia Adam Morton brings you incisive analysis about the politics and impact of the climate crisis after newsletter promotion 'We have to play our part, but we have to make sure that we don't do it at any cost.' Business and environment groups agree shifting to anything less than net zero will be bad for investment and economic growth. Such a move would leave the Liberals unelectable, particularly in the metropolitan areas it needs to win back. After just seeing off a teal challenger in her Mornington Peninsula seat of Flinders, the Liberal MP Zoe McKenzie quickly called for the party to hold firm on net zero. 'It is important for an electorate like mine where environment is very highly valued,' she said, noting the Liberals hold just eight of the 88 metropolitan electorates around the country. A fellow moderate, New South Wales senator Andrew Bragg, said the Liberals were looking at how Australia could best get to net zero and how the target could be 'deployed'. But the Western Australian frontbencher Andrew Hastie this week told the ABC net zero was 'a straitjacket that I'm already getting out of'. 'The real question is should Australian families and businesses be paying more for their electricity?' he said. Powerful forces in business and the media are pushing back against net zero, emboldened by Donald Trump's decision to pull out of the Paris agreement. They could influence the whole Coalition via the back door of National party agitation. The head of this year's UN climate talks, Cop30, warned on Friday the world is facing a new form of climate denial, in the form of a concerted attack on the idea that the economy can be reorganised to fight the crisis. The veteran Brazilian diplomat André Corrêa do Lago said economic denialism will lead to the same dangerous outcomes as now discredited scientific denialism. Labor faces criticism of its own, after the environment minister, Murray Watt, this week approved an extension to Woodside's massive North West Shelf gas project in Western Australia out to 2070. Watt said he was signing off subject to 'strict conditions' relating to local air pollution. He also had to consider the potential impact on nearby ancient rock art, and economic and social matters. Climate change is not grounds to refuse or limit a development application under Australia's national environment law. The Greens leader, Larissa Waters, said the government was waving around net zero 'as a fig leaf' while putting the Great Barrier Reef at existential risk. Groups including the Australian Conservation Foundation say net zero by 2035 would give Australia the best shot at fairly contributing to efforts to limit global heating to below 1.5C. They argue cutting emissions by 71% by 2035, based on 2019 levels, should be the floor of federal ambition in Australia. Ley may have to hold the Nationals close to keep the Coalition together, but caving on net zero won't help her win back the more than 30 seats the Liberals have lost since Tony Abbott became prime minister. Tom McIlroy is Guardian Australia's chief political correspondent


Reuters
2 days ago
- Business
- Reuters
Malaysia expands biodiesel usage of B10 to B20 on ground transport vehicles at main airport
KUALA LUMPUR, May 29 (Reuters) - Malaysia is expanding its biodiesel usage to ground transport vehicles at its main international airport as part of efforts to achieve net-zero carbon emissions by 2050, the commodities minister said on Thursday. Malaysia will increase the biodiesel blend from B10, a mixture of 10% palm-based biodiesel, to B20, for ground transport vehicles, Plantation and Commodities Minister Johari Abdul Ghani told a press conference after the launch of the biodiesel pilot project. Malaysia currently imposes a 10% biodiesel mandate nationwide, though a 20% biodiesel mandate is implemented in Labuan and Langkawi as well as the state of Sarawak, except Bintulu. Indonesia, the world's top palm oil producer, has launched the mandatory B40 biodiesel programme and is considering expansion to B50. 'If this pilot project succeeds, we will roll it out (to other sectors) as this is one of the country's initiatives and our commitment to achieve net-zero carbon emissions by 2050,' he said, without providing a timeline for the project's duration. Malaysian Palm Oil Board chairman Mohamad Helmy Othman Basha said similar pilot projects were also being implemented at several major ports such as in North Port Klang, Tanjung Pelepas Port, Johor Port, and Kuching Port. The usage of palm biodiesel, Mohamad Helmy said, would not only reduce dependence on fossil fuels but also empower small palm oil farmers and local communities involved in the industry. "This is proof that sustainable development and the economy can go hand in hand, benefiting both the people and the environment simultaneously," he said at the launch.


The Guardian
3 days ago
- General
- The Guardian
The Coalition is back together, what now?
Liberals leader, Sussan Ley, and Nationals leader, David Littleproud, have reached a new agreement, presenting a united front and announcing a new shadow frontbench. But with the Liberals facing a mammoth task ahead, and net zero commitments up in the air, could this mark the beginning of a rocky term for the Coalition? Nour Haydar speaks with Dan Jervis-Bardy about the Coalition's short-lived breakup


Bloomberg
4 days ago
- Business
- Bloomberg
CEO of UK's Largest Energy Supplier on Backing Green Power
US President Donald Trump has attacked renewable power and is in the process of derailing America's energy transition. Will that set back net zero efforts globally? Octopus Energy CEO Greg Jackson says the economic forces behind green energy are inevitable, as long as governments ignore the 'siren voices' of incumbent interests. He speaks to Caroline Hepker on Bloomberg Radio. (Source: Bloomberg)