By Mike Foley
Prime Minister Anthony Albanese has vowed that no federal money will flow to gas companies as a result of a policy promoting new fossil fuel projects to plug a supply shortage that has sparked a backbench revolt.
Six Labor MPs in at-risk seats have spoken out against the future gas strategy spearheaded by Resources Minister Madeleine King, following warnings from the Greens and teal independents that they will campaign against Labor’s stance on gas to win seats at the next federal election.
Prime Minister Anthony Albanese is facing criticism over plans to cover a renewable energy shortfall with gas.Credit: Trevor Collins
New sources of gas are needed to bolster supply beyond 2050 from projects such as Woodside’s offshore Scarborough gasfield and the Narrabri project in NSW, according to the strategy, which warns that gas shortfalls will hit the eastern states by 2028 and Western Australia in 2030.
The Greens have accused the government of reviving the former Morrison government’s gas-led recovery policy, which sought to open new gas fields to stimulate the economy. They want fossil fuel use phased out by 2030 and oppose any government support for the gas industry.
“At every hurdle, Labor’s comprehensively caved to pressure from fossil fuel corporations. Vote with Greens against more coal and gas for a safe climate future,” Greens leader Adam Bandt said on Friday.
Victorian Labor MPs who hold seats being targeted by the Greens – Josh Burns in Macnamara, Ged Kearney in Cooper and Dr Michelle Ananda-Rajah in Higgins – have said the government should seek to switch from fossil fuels to renewable energy as swiftly as possible. They were joined in their criticism by fellow Victorian MP Kate Thwaites and Sydney MPs Jerome Laxale and Sally Sitou.
The strategy, released by King on Thursday, said “new sources of gas supply are needed to meet demand during the economy-wide transition” to clean energy.
However, Albanese said on Friday that the government would not spend public money on the gas industry under the strategy.
“Not a single government dollar as a result of this announcement in gas, not one,” Albanese told ABC radio.
“This isn’t a gas-led recovery. We’re not saying that at all.”
The Labor Environment Action Network said the strategy failed to include measures to reduce gas usage, such as incentives to switch to electric appliances, which meant its push for new supply made it appear as “boosterism for the gas industry”.
“LEAN is disappointed the government is focusing so heavily on the need for new gas supply instead of managing down gas demand,” the grassroots organisation said in a statement.
Climate Change and Energy Minister Chris Bowen said on Friday that the MPs questioning the gas strategy “are not a pressure group” and argued that the government’s ambition to rapidly ramp up renewables had not changed.
“Josh [Burns] said he believes the emphasis should be on renewable energy and promoting renewable energy. I agree. Guess what? So does Madeleine King, so does Anthony Albanese, so does the cabinet,” Bowen said.
“That’s why we’re lifting renewable energy from 30 per cent of our National Energy Market to 82 per cent by 2030.”
Bowen said gas had a role to play in supplying backup power for renewables but stressed that the government’s focus was decarbonising the economy.
He announced the government had opened a tender under the government’s scheme to underwrite private companies to build wind and solar farms.
“Today’s announcement of 1.4 gigawatts for Victoria, which is enough renewable energy for 700,000 homes, is a very important part of that drive towards a renewable energy future,” Bowen said.
Opposition energy spokesman Ted O’Brien said the gas strategy failed to deliver tangible measures to assist industry in developing new projects in the near term and claimed the policy had been dictated by ideological opposition to fossil fuels.
“Labor’s so-called ‘gas strategy’ reads more like an obituary for the sector as it kills off any chances of Labor getting any additional gas out of the ground,” O’Brien said.
“It’s disappointing to see [Resources Minister] King miss yet another opportunity to deliver a credible gas policy because she has been rolled by her ideological colleagues.”
Environmental groups questioned the government’s announcement on Wednesday of $566 million in funding for the Commonwealth’s Geoscience Australia to survey the country and its territorial waters, including for identification of mineral and gas deposits.
The Wilderness Society said despite the government’s support for renewables, its push for new gas projects undermined moves to curb greenhouse emissions from fossil fuels.
“It’s an error by the Albanese government to direct resources away from the necessary energy transition, towards propping up an industry that is completely misaligned with Australia’s national interest,” Wilderness Society policy and strategy manager Tim Beshara said.
“The Morrison government tried to bail out the industry with its reprehensible ‘gas-fired recovery’ launched in response to COVID-19, and it didn’t stop the industry’s decline.”
Cut through the noise of federal politics with news, views and expert analysis. Subscribers can sign up to our weekly Inside Politics newsletter.