Government to start more gas projects despite net zero pledge

Aussies set to get welfare boost in budget

The federal government will open up new gas projects to meet its energy supply needs under a new medium and long-term strategy that has drawn heavy criticism from climate advocates.

The future gas strategy, announced this morning by Resources Minister Madeleine King, is based on six principles, including the fossil fuel remaining affordable for households, that new sources are opened up, and that it play a key role in the country’s transition to a decarbonised economy.

King said gas would continue to be used in Australia’s energy mix up to and even beyond 2050 – the deadline for reaching net zero emissions.

“Gas plays a crucial role in supporting our economy, with the sector employing 20,000 people across the country, including remote and regional communities,” she said.

“Ensuring Australia continues to have adequate access to reasonably priced gas will be key to delivering an 82 per cent renewable energy grid by 2030, and to achieve our commitment to net zero emissions by 2050.

“The strategy makes it clear that gas will remain an important source of energy through to 2050 and beyond, and its uses will change as we improve industrial energy efficiency, firm renewables, and reduce emissions.”

Both King and Prime Minister Anthony Albanese said the strategy is compatible with Australia’s pledge to reach net zero by 2050.

“It is consistent with the long position that we have held, my government is committed to a net-zero future,” Albanese said.

“Gas power generation is something that firms renewables.”

But climate advocates and crossbench politicians – including independents and the Greens – have slammed the move.

“The government must be supporting industries of the future, not the past,” Smart Energy Council chief executive John Grimes said.

“A smart energy future is one without heavily polluting industries.

“We have the renewable energy solutions of the future now, but their ability to replace fossil fuels is being seriously delayed.”

The Australian Conservation Foundation said it was a departure from Labor’s messaging before the 2022 election.

“This strategy is a kick in the guts to the millions of Australians who voted in the Albanese government in May 2022, believing it signalled a new dawn for climate action,” national climate program manager Gavan McFadzean said.

“Gas is a highly polluting fossil fuel, the burning of which is supercharging bushfires, heatwaves, coral bleaching and flooding in Australia and around the world.

“Exploiting new gas fields is incompatible with the Future Made in Australia vision to help regions that have traditionally relied on fossil fuel production transition to clean energy.

“To replace one fossil fuel with another is not a clean energy transition.”

Business and energy bodies have, however, welcomed the move.

“The future gas strategy provides an opportunity to reset gas policy in Australia,” Australian Energy Producers chief executive Samantha McCulloch said.

“A Future Made in Australia is not possible without natural gas. Delivering on the Strategy’s objectives will require a whole-of-government response and national leadership to bring state governments on board.”

“The future gas strategy strikes the right balance by ensuring Australia can transition to net zero, while also keeping prices down, delivering reliable power supply and retaining jobs,” Business Council chief executive Bran Black said.

“Gas is needed for peaking and firming capacity to keep the lights on and ensure households and industry have energy security at affordable prices.”