'Lagging at the back of the pack': Australia's energy transition among worst in OECD, research finds

The government claims Australia's carbon emissions fell faster than the OECD and G20 averages between 2005 and 2019. But new research has found the country is "not leading the race" and is instead at the "back of the pack".

A coal fired power plant.

Emissions from a coal fired power plant. Source: AAP

Australia's overall clean energy transition performance has been worse than 23 other comparable countries, and it is one of only three in the group to have increased its energy combustion emissions between 2005 and 2019, new research says.

The research also found that before the coronavirus pandemic, Australia remained the most emissions intensive energy system among OECD countries, with the exception of Poland, and had the third highest per capita transport emissions behind the US and Canada.

'Back of the pack: An assessment of Australia's energy transition' was published on Monday by progressive think tank the Australia Institute ahead of the 26th UN Climate Change Conference (COP26) in Glasgow in November.
The research, authored by leading energy analyst Dr Hugh Saddler, says that according to key indicators of decarbonisation and energy transition, Australia ranks poorly among 22 other OECD countries and Russia, with its fossil fuel reliance for energy having risen since 2005.

“The research shows that Australia is not leading the race to reduce emissions in our economy, we are lagging at the back of the pack of developed countries,” said Dr Saddler, Honorary Associate Professor Crawford School of Public Policy at ANU, and report author. 

“Despite the last decade of growth in solar and wind energy, fossil fuels still dominate Australia’s energy sector and its rate of electrification, that is getting off coal, oil and gas for energy, is one of the worst in the OECD."

Prime Minister Scott Morrison has been frank in his support for oil and gas, telling the G7 in June that "the oil and gas sector is a major contributor to Australia’s prosperity – always has, will always be”.
Prime Minister Scott Morrison during the G7 Summit in Carbis Bay, Britain.
Scott Morrison says Australia is on track to meet its Paris emissions reduction targets. Source: EPA
“I know there is a new energy economy coming and we need to be ready for it, we need to be part of it, and we will be successful in it,” Mr Morrison told the Australian Petroleum Production and Exploration Association’s conference in Perth, footage he shared with the G7.  

“We need to make sure that Australia succeeds.

“But that will not come at the cost of our heavy industry and manufacturing industries, it will not come through higher taxes, it will come through technology, and innovation and the entrepreneurship of our industry leaders, through supporting Australia’s resources sector to explore the future – that’s how we make our way.”
In a statement to SBS News, a government spokesperson described the Australia Institute report as "flawed and misleading".

The federal government says that between 2005 and 2019, Australia's emissions fell faster than both the OECD and the G20 averages.

It says Australia is "on track" to cut carbon emissions by 26 to 28 per cent below 2005 levels by 2030 in line with its Paris climate agreement targets.

While the report conceded the government had prioritised productivity to meet its Paris target and had significantly increased its share of wind and solar generation in the last decade, Australia still has not moved forward in rankings given faster energy transitions taking place in the other OECD countries, it said.
The report found that between 2005 to 2019, Australia performed worse than 22 other OECD economies and Russia at reducing its energy dependence on fossil fuels in overall terms.

In 2005, energy combustion emissions accounted for 58 per cent of national emissions, however in 2019, it accounted for nearly three quarters (72 per cent). According to the report, Australia was one of three of the 23 countries to have increased its total energy combustion emissions between this time period. 

Australia also had the third highest per capita transport emissions in 2019, behind only that of USA and Canada, the report said, and achieved a much smaller reduction in per capita transport emissions than either of those countries between 2005 and 2019.

“Over the last 15 years, Australia has squandered its golden opportunity to decouple its energy sector from fossil fuels, unlike so many other OECD countries. As a result, Australians are left with high-polluting and inefficient power, heating, housing and transport. This also drives up our cost of living and drives down our energy productivity," Dr Saddler said.

“Beyond the comparison with other countries, this report demonstrates that Australia’s so-called ‘gas-fired economic recovery’ runs absolutely counter to the needs of Australia’s energy system transition, and will only serve to make Australia’s emissions reduction performance even worse.”
The prime minister has said Australia's policy to reduce greenhouse gas emissions would focus on technology. 

Minister for Energy and Emissions Reduction Angus Taylor told a recent G20 meeting that low-emissions energy sources must be competitive to ensure widespread adoption and to make net zero achievable.

"As the world recovers from the pandemic, a step up in global cooperation in clean technology research and development…has never been more important," Mr Taylor told energy and environment ministers.
Scott Morrison (left) and Energy Minister Angus Taylor (right) during a tour of the Ampol Lytton Refinery in Brisbane, Monday, 17 May, 2021.
Scott Morrison (left) and Energy Minister Angus Taylor (right) during a tour of the Ampol Lytton Refinery in Brisbane, Monday, 17 May, 2021. Source: AAP
"Our collective focus must be on driving down the costs of new and emerging technologies to parity with existing alternatives.

"This approach has global application … We need to ensure that new, low emissions energy sources achieve technical and commercial parity – or better – with incumbent technologies as soon as possible.

"This is the key to widespread global adoption, to maintaining energy affordability and reliability and to delivering strong economic growth at the same time as we reduce global emissions."

The Morrison government says it's investing in the next generation of technologies, including energy efficiency, carbon capture technologies such as CCUS and negative emissions technologies, blue hydrogen (clean hydrogen from gas using CCS), energy storage technologies to back up renewable energy and soil carbon.


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6 min read
Published 9 August 2021 6:05am
By Caroline Riches



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