Sonali Paul

MELBOURNE (Reuters – Australia’s election result has attracted a number of Greens and Independents who are pushing for ambitious targets to lower carbon emissions. These will push the incoming Labor government, if necessary to accelerate its climate plan.

It is expected that the nation’s top polluters of coal, oil and natural gas and other building materials will see a slowing down in allowed carbon emissions. Labor, however, aims to increase electric vehicle demand and boost renewable energy developments.

Australia is one of the top exporters and largest carbon emitters in the world. The remarkable result of its election represents an extraordinary shift. Last year, Australia was criticized for not meeting the ambitious goals set by other wealthy nations at the Glasgow climate summit.

In his victory speech, Anthony Albanese, the incoming Prime Minister stated that “Together they can end climate wars.” “Together, we can capitalize on the potential for Australia to become a renewable energy powerhouse.”

Albanese said Labor would continue its goal to cut carbon emissions by 43% by 2030 from 2005 levels, which is much more difficult than the Paris targets of the current conservative government.

Votes are still being counted so Labor may not have a majority at the lower house. This means that it will need to be supported by an expanded cross-bench. It could still face opposition in the Senate even with an absolute majority. There, the Labor Party will need to collaborate with Greens and other parties to pass legislation including the 2030 emission target.

Richie Merzian from the Australia Institute, climate and energy director, said, “Now, the battle will over ambition in short term targets, legislating plans so they’re out of the hands any one government and hitting pause for new fossil fuel mines.”

Greens aim to get net zero before 2035 and not 2050. Stop new construction of coal or gas infrastructure, end the use of coal-fired electricity by 2030.

A handful of independent climate-focused individuals will push for emission reductions of at most 50% before 2030, and Labor could also be under pressure.

FOSSIL FUEL JOBS

Scott Morrison, the deposed Prime Minister of Australia, mocked Labor once, holding up a lump in his parliament and declaring, “Don’t be afraid!”

Labor, conscious of the defeat it suffered in 2019, when it lost seats to regions dependent on coal- and-gas jobs, has since dropped or reduced policies that could harm them.

A senior Labor politician praised the industry’s ability to build mega-projects and generate huge exports two days before the election. This year, the company is expected to earn A$70billion ($50billion).

Madeleine King from Labor, the shadow minister for resource, said at a conference that “I want it to be crystal clear how excited I am but also how enthusiastic Labor for this industry because we know it creates job and creates livelihoods.”

Key climate policies for Labor include tax incentives to encourage electric vehicle demand, A$20billion of cheap financing to finance transmissions for new renewable energy projects, and tightening our emissions “safeguard system”.

This mechanism establishes a limit on allowable carbon emissions for the 215 largest mining, energy, and material companies that produce more than 100,000 tonnes of equivalent carbon dioxide per year.

The plan proposes that companies reduce the baselines in order to reach net zero by 2050. However, the proposals are not affecting many businesses.

Meg O’Neill (OTC:) Petroleum chief executive, stated this week that “at a large-picture level it’s likely not going to feel very differently from the commitments we’ve made.”

Labor may face costs challenges as it tries to reach 82% renewable electricity by 2030. These include the rise in cost of solar, wind and power line materials. Moreover, power prices will rise due to rising global gas and coal prices.

Tennant Reed from Australian Industry Group, head of climate policy and energy policy, stated that “the next few years will look terrible for energy users, which will put pressure on anyone in government over that.”

($1 = 1.4219 Australian dollars)