Greens propose levy on coal exports to drive coal phase-out within a decade

The Australian Greens would impose a levy on Australian coal exports as part of a $21.7 billion plan to phase out Australia’s use of coal and end coal exports by 2030.

Launching its ‘Powering Past Coal and Gas’ plan at the historic loader in North Sydney on Thursday, Australian Greens leader Adam Bandt said that neither the Coalition nor Labor had adequately addressed the need to phase out fossil fuel use.

“People want to hear parties tackling the big issues like climate change, but Liberal and Labor are desperate not to talk about it and they back more coal and gas instead,” Bandt said.

“Liberal and Labor say they’ll open new coal and gas mines, but the Greens have a comprehensive climate and energy plan for Australia to power past coal and gas, become a renewable energy superpower and move to a jobs-rich zero pollution economy.”

“Liberal and Labor back 114 new coal and gas projects,” Bandt added.

Under the Greens’ plan, a moratorium would be placed on the development of new coal, oil and gas projects, with additional goals to phase out the use of thermal coal by 2030 and metallurgical coal by 2040.

The Greens would also look to end the export of coal, imposing a cap on exports of 230 million tonnes in 2030, which is gradually phased down to zero coal exports by 2030.

To help drive this, a levy would be placed on coal exports, starting at $1 per tonne on thermal coal and $3 per tonne on coking coal, which would then ramp up each year afterwards.

Funds raised through the levy would be used to establish a ‘disaster fund’ to assist communities to recover from climate-change fuelled disasters like floods and bushfires and would help cover the cost of a jobs guarantee for coal industry workers also proposed by the Greens.

“The Greens have a plan to phase out coal exports and levy the coal corporations to help pay for the damage they’re causing and to grow new, clean industries with secure jobs,” Australian Greens leader Adam Bandt said.

“The coal levy will support climate disaster recovery and investment in expanding exports of renewable energy, green hydrogen, green steel and other green metals.”

“The Greens’ plan supports coal miners and communities by guaranteeing wages and growing new industries. In many parts of the country, the best job for a coal miner is another mining job, and this plan will help make that happen.”

“Eighty per cent of the coal that mining billionaires dig up is exported overseas, just like their profits, but the Greens’ plan will ensure they help fund the transition and provide secure jobs and industries for Australia,” Bandt added.

The Greens’ cited scenario analysis produced by the International Energy Agency that suggests an immediate stop to the development of new fossil fuel projects was necessary to support reaching a net zero target.

The Greens have adopted a net zero emissions target for 2035 and say Australia should aim to achieve negative emissions of 100 million tonnes by 2050.

A recent report from the Intergovernmental Panel on Climate Change found that global greenhouse gas emissions would likely need to become negative, after initially reaching net zero, to limit global warming to within 1.5 degrees, to account for the slow pace of reductions that have been achieved to date.

The Greens have made several major policy announcements on climate change as part of its bid to secure the balance of power in the federal parliament. In a fiery speech to the National Press Club, Bandt suggested both Labor and the Coalition were ‘aiding the enemy’ on climate change, by supporting the development of new fossil fuel projects.

The latest announcement comes as the Coalition battles within itself over its commitment to a net zero emissions target, and Labor fends off a scare campaign that seeks toits own policies as a ‘carbon tax’.

Both major parties have sought to play down suggestions that their climate change policies may lead to the closure of Australian coal mines.

The<cInternational Energy Agency’s ‘roadmap to net zero by 2050’ suggests global coal use would need to halve by 2030 and decline by at least 90 per cent by 2050 to allow such a target to be achievable.