“The federal government has been mugged by reality, and has all but conceded that net zero is now officially dead. Its gas reservation policy, announced yesterday, marks a dramatic reversal of years of demonising fossil fuels,” said Daniel Wild, Deputy Executive Director of the Institute of Public Affairs.
The new gas reservation policy will require gas exporters to ensure a value equivalent to 20 per cent of exports is held for the domestic market from 1 July 2027.
“This is a positive sign that the federal government is moving away from its destructive fixation on net zero, to ensure that Australia has enough of its own energy supplies from coal, gas, and oil,” Mr Wild said.
Recent examples of governments across Australia ditching net zero include:
- The Prime Minister’s support for the construction of a third oil refinery for Australia’s domestic production and use.
- The commitment of the federal government to secure 37 days of petrol and up to 50 days of diesel and jet fuel.
- The approval by the Australian and Victorian governments of a new Petroleum Production Licence to develop the Annie gas field off the Victorian coast, for use in Australia’s domestic market.
- The passage through the New South Wales Legislative Council of legislation to remove the NSW prohibitions on uranium mining and nuclear energy.
- The federal government’s approval of the Australia Pacific LNG project in March of this year, to deliver up to 1,695 new production wells across the Surat and Bowen basins.
- The Queensland state government’s plan to open state-owned land for oil storage and refineries purposes.
“Governments across Australia are undertaking important actions which indicate they are finally getting the message: net zero is an expensive and destructive dud which makes no discernible difference to the climate or environment.”
“To provide certainty for Australia’s future energy needs, the federal government must now formalise its abandonment of net zero by repealing legislation, such as the Safeguard Mechanism, which underpins this misguided policy,” Mr Wild said.
