Federal energy minister Angus Taylor has been slammed for channelling more than $50 million in new subsidies into the gas industry, just as Australia faces fresh international calls to strengthen its emissions reduction targets and emerges from its latest flood crisis.
On Tuesday, federal energy and emissions reduction minister Angus Taylor said the Morrison government would provide an additional $50.3 million in subsidies to the gas industry to support the construction of more gas infrastructure.
Projects receiving the subsidy include gas pipelines, storage infrastructure, and new gas extraction projects across Victoria, Queensland, and the Northern Territory. The funds will support the ongoing development of new gas projects in the Beetaloo, Surat and Bowen gas basins.
Taylor rehashed claims that Australia’s east coast faces a gas shortage as part of his justification for providing the additional funding to the fossil fuel projects. He again cited the Russian invasion of Ukraine as justifying the expansion of Australia’s fossil fuel industries.
“The ACCC and AEMO have made multiple warnings of the forecast gas supply shortfall in the east coast market as early as this decade. This, along with the energy crisis in Europe, should act as a warning of what could happen in Australia if there is not enough investment in the gas sector at home,” Taylor said.
“That’s why we are investing in seven priority projects as part of our gas-fired recovery, to make sure Australia has adequate supply and storage to avoid expected shortfalls in production in southern Australia that could emerge by 2024.”
But Climate Council senior researcher Tim Baxter labelled the shortage claim as “nonsense” given the volume of gas Australia produces is significantly larger than the amount consumed domestically.
“It is nonsense to pretend that Australia has a gas supply problem. Australia produces five times more gas each year than is used for domestic purposes, but the vast majority is exported,” Baxter said.
“The federal government already has the power to compel gas exporters to ensure that Australia’s gas needs are met first, but it refuses to use it. Instead, they insist on goading this parasitic industry into doing more harm to Australian productivity by throwing ever more taxpayer funds at it.
“Truly, it is difficult to imagine a worse place to throw public money right now. Last night, the UN Secretary General said expanding fossil fuel production in response to supply problems created by Russia’s war in Ukraine was “madness” and that “addiction to fossil fuels is mutually assured destruction”.”
Australian Greens leader Adam Bandt slammed the announcement of further funding for the gas industry at a time when significant parts of Australia are still in the process of recovering from devastating climate-fuelled flooding.
“This is a slap in the face for flood victims,” Bandt said.
“By backing more coal and gas, Liberal and Labor are putting lives at risk. We need to keep coal and gas in the ground, not fast-track more gas with public money.”
“The floodwaters haven’t even receded yet and the Liberals are handing out another $50 million of public money to unlock seven new projects and fast-track climate collapse, and Labor looks set to support them.”
Overnight, Australia was singled out for criticism by UN Secretary General Antonio Guterres, who said Australia was one of a number of “hold out” countries that have refused to set stronger 2030 emissions reduction targets.
In his speech, Guterres called on countries to “end fossil fuel subsidies and stop the expansion of oil and gas exploration” and that countries should avoid using the Russian invasion of Ukraine as an excuse to ramp up fossil fuel use.
“As major economies pursue an “all-of-the-above” strategy to replace Russian fossil fuels, short-term measures might create long-term fossil fuel dependence and close the window to 1.5 degrees,” Guterres said.
“Countries could become so consumed by the immediate fossil fuel supply gap that they neglect or knee-cap policies to cut fossil fuel use.”
“This is madness,” Guterres added.
Taylor made clear where the government’s priorities lay.
“The Government has a clear stance on both natural gas and CCS – we will strongly back these sectors which are critical to both affordable and reliable energy for all Australians, as well as emissions reduction,” Taylor said.
