Australian gas will be the biggest loser with Japan revising energy targets, according to the Climate Council, Australia’s leading community-funded climate change communications organisation.
Japan plans to double its renewable energy target for 2030 and, at the same time, halve its use of gas—a move that could pull the rug out from Australia’s “already flimsy” gas-led recovery plans.
“Japan is one of Australia’s biggest export markets for LNG. This development could undermine the Federal government’s support for new gas earmarked for export,” Climate Councillor and energy expert Dr Madeline Taylor said.
“The government has allocated tens of millions of dollars into opening up new gas basins like the Beetaloo basin in the NT and the Bowen and Galilee basins in Queensland, but it’s not clear this spending is necessary, given the growing uncertainty around having buyers for this gas.”
Related article: APPEA, industry decry NSW gas development call
The revised figures, laid out in a draft plan by Japan’s Ministry of Economy, Trade and Industry, says renewables should account for 36-38 per cent of power supply in 2030, double the 18 per cent level in March 2020.
Meanwhile, the share of liquefied gas in Japan’s energy mix is set to drop by almost half from 37 per cent today to around 20 per cent in 2030.
“Japan’s revised energy plans come months after US President Joe Biden’s Leaders Summit on Climate, where Japan pledged to slash emissions 46 percent from 2013 levels by 2030, up from its earlier goal of 26 percent,” said Dr Taylor.
“In contrast, Australia has not adopted a binding net zero emissions target, nor has it raised the ambition of its 2030 target, which is well below scientific recommendations. Japan’s move shows global momentum for climate action is accelerating. This creates economic risks for Australian LNG exports, which represent up to 82 per cent of Australian gas production,” she said.
“As one of the sunniest and windiest countries on earth, Australia could be generating and exporting renewable energy to meet rising global demand. The government must accelerate progress towards a renewables-powered economy instead,” Dr Taylor.
