WORLDWIDE TRENDS
GLOBAL REGENERATION Tim Buckley compares local and global commitment to renewable energy policies, programs and funding and, despite some glaring anomalies, concludes much of the world is finally heading in the right direction.
“All of Australia’s key global trading partners are rapidly ratcheting up their pledges to decarbonise … the Australian government must catch up.” – TIM BUCKLEY
24 SPRING 2021
ANYONE WITH A STAKE in a low carbon economy and healthy, liveable climate – and let’s face it that is most Australians – could easily become disheartened by stubborn political attitudes. The harsh reality is the nation’s leaders are failing to focus on the climate science or the need for a rapid decarbonisation of the economy. Instead, the Federal government is bizarrely trying to provide new capacity payment subsidies to extend the life of antiquated coal plants and is funnelling tens of millions of dollars into new gas exploration, despite the reluctance by companies themselves to invest. The government is also determined to overturn bi-partisan support for an ongoing ban on nuclear power. Australia’s failure to take the lead on renewable energy matters is out of step globally, with many countries around the world now pledging to decarbonise to address the overwhelmingly obvious signs that extreme weather events are becoming more frequent and more extreme with deleterious effects on economies and communities. Global corporate and financial institutions are likewise responding by curtailing finance to new fossil fuel projects and Australian institutions are following suit, recognising that Australia is very much a trade-exposed economy and its financial system is inextricably linked to international markets. Despite the Federal government’s decade-long energy policy chaos, Australian consumers are taking energy security into their own hands with more and more investing in rooftop PV systems, comfortable in the knowledge they are generating their own renewable energy.
Industry highs It appears 2021 will be another record year for rooftop solar installations of over 3.5 gigawatts (GW) according to the Clean Energy Regulator, building on the 40 per cent growth in the total capacity of installs in 2020 of 3GW. Over the past decade the average system size being installed has trebled to over 8 kilowatts (kW). Australia is now well ahead of Green Energy Markets’ forecast for rooftop solar to reach over 50GW by 2050, half of the total grid capacity. And behind-the-meter batteries and batteries-on-wheels will rapidly follow. Households have clearly taken the energy transition in hand. Now Australia’s key trading partners are accelerating global effort to respond to the global climate crisis.
Global policy shifts and their impact on Australia China has pledged to peak emissions by 2030. Its key power and steel sectors have committed to play a leading role in peaking by 2025, with the steel emissions reduction plan proposing an audacious 30 per cent cut from 2025 to 2030. This implies a dramatic and significant policy shift for Australia whose two largest exports are iron ore and coking coal to China. Japan’s new energy plan for 2030 was approved in July 2021, consistent with Prime Minister Suga’s surprise pledge in April to cut country emissions by 46 per cent by 2030. The plan confirms the Ministry
“Here in Australia, notwithstanding federal political intransigence in refusing to accept the climate science or in seizing growing opportunities for investment, employment and exports, Australia still stands to become a renewable energy superpower.”
