Jobs drift on gas inaction, Combet says
A former climate change minister says coal seam gas is the solution to soaring energy costs and carbon reduction needs.
Greg Combet, federal Minister for Climate Change under the last Labor government, has penned a piece for the Australian Financial Review in conjunction with former Minister Assisting the Prime Minister on Asian Century Policy, Craig Emerson.
The two men once central to the Labor party and union movement now work as consultants with clients including gas giant AGL. They are strongly critical of conservative governments for holding up onshore gas development.
Both key figures during the disjointed string of Labor Prime Minister-swapping, Emerson and Combet say community concerns are important, but doing nothing about CSG will see Australian jobs drift to the US.
Mr Combet wrote that it makes sense to “dramatically increase domestic gas production, to ensure that the supply of gas keeps prices down and encourages investment in gas-fired power generation rather than coal”.
“This would enable us, similar to the US, to significantly cut emissions.”
Mr Combet and Mr Emerson agreed that freezing coal seam gas development would only drive gas prices higher, increase the pressure on manufacturing jobs, continue the reliance on coal for energy and bring higher greenhouse emissions.
But the two hail US President Barack Obama for efforts to cut pollutant emissions from power generation – “achieved mainly by switching from coal to shale gas”, they write.
“Without urgent new coal seam gas development in NSW the state’s industrial gas users will face uncertain supply and price volatility during peak usage periods from 2016.”
Mr Combet said heavy investment in carbon capture and storage would be “imperative”, to ensure Australia dominates the market on greenhouse solutions and fossil fuels at the same time.
They do not appear to champion the gas industry’s campaign against the Renewable Energy Target, which industry figures claim is squeezing gas out of the domestic power mix.
As Australia is overladen with cheap thermal coal, the target is “simply necessary” to deliver renewable change, Mr Combet said.
They say the LNP government’s axing of the carbon price will be short-lived, and that pressure from international trading partners will inevitably see it return to the table.
The missive comes as fossil-fuel dis-investment advocates at 350.org are preparing to “name and shame” superannuation funds with big investments in fossil fuel in Melbourne on Tuesday.