As the world races towards decarbonization, Australia finds itself at a pivotal crossroads.
Moreover, with the inevitable decline of fossil fuel exports, Australia has a unique chance to transform its economic future by becoming a global leader in clean energy exports.
The upcoming 2035 emissions target presents an opportunity for Australia to redefine its role in the global energy market, transitioning from a major fossil fuel exporter to a key player in clean commodities.
Currently, Australia’s coal and gas exports contribute over a billion tonnes of CO2 emissions, approximately 3% of global fossil fuel emissions.
However, with fossil fuels facing long-term decline, the Australian government has a chance to embrace the future of renewable energy.
This shift can help other nations decarbonize by exporting energy-intensive commodities like iron, aluminum, and green fuels, produced through sustainable practices powered by Australia’s abundant solar and wind resources.
The potential for Australia to become a clean energy export giant is immense.
If Australia processed its iron ore and alumina exports using renewable energy and produced green fuels to match current LNG export levels, it could save around 4% of global CO2 emissions.
This is just the beginning. By exporting clean products and electricity, Australia could further reduce global emissions, providing an economic boost while helping to mitigate climate change.
To seize this opportunity, the Australian government could include clean export goals in its Nationally Determined Contribution (NDC), an official document submitted to the UN.
While not legally binding, such an initiative would signal to the world Australia’s commitment to combating climate change, placing the country at the forefront of international climate policy discussions, especially during COP31.
Australia’s economic future lies in clean commodities.
By embracing this transition, Australia can not only help the world meet its climate goals but also secure its position as a leading exporter of sustainable energy solutions.