Australia’s largest gas and coal export partner slashes demand

Japan, Australia’s largest thermal coal and gas buyer, has announced a switch to renewables – with the goal of doubling its renewable energy target for 2030 and halving its gas usage, slashing demand for Australian LNG and coal.

The changes were announced by Japan, which currently buys 67 per cent of its thermal coal and 39 per cent of its LNG from Australia, in a draft report from Japan’s Ministry of Economy, Trade and Industry.

The revised figures laid out in the draft plan state that renewables should account for 36-38 percent of power supply in 2030, double the 18 percent level in March 2020.

These changes have created turbulence in the Australian LNG and coal industry – especially as the Federal Government has hailed gas as a key part of the country’s COVID-19 recovery and continues to invest in the industry, recently committing $224 million in funding to develop an onshore gas field in the Northern Territory Beetaloo Basin.

Japan’s choice shows a worldwide energy reset, moving away from fossil fuels and turning to renewables, to combat climate change.

Greens Leader, Adam Bandt, said, “This year, about 40 per cent of Australia’s gas and thermal coal exports have gone to Japan.

“This one decision from Japan alone could end close to 20 per cent of Australia’s thermal coal exports within a decade, and with China and Korea also committing to net-zero emissions, the industry could soon collapse.”

Mr Bandt said that the Federal Government must massively ramp up investment in manufacturing and green energy in Queensland and NSW to guarantee secure jobs after 2030, and that the Beetaloo gas fields in the Northern Territory developments should be halted.

“Opening up new gas fields isn’t just a climate crime, it’s an economic disaster,” Mr Bandt said.

Dr Madeline Taylor, Climate Councillor and energy expert, said that Australia could be generating and exporting renewable energy to meet rising global demand.

“The government must accelerate progress towards a renewables-powered economy instead,” Ms Taylor said.