Labor Party officials have expressed strong opposition to the Coalition’s recent pledge to offer subsidies for both existing and new gas power plants, calling the move illogical and potentially damaging to the environment.
In a speech delivered at the Australian Pipelines and Gas Association Convention in Adelaide, Ted O’Brien, the opposition’s climate change and energy spokesperson, asserted that under a potential Dutton government, gas would remain a staple in Australia’s energy landscape.
O’Brien announced that the Coalition plans to incorporate gas into the capacity investment scheme, which the Albanese government currently uses to support renewable energy initiatives, including underwriting 32 gigawatts of solar, wind, and battery storage.
While O’Brien asserted that this approach would help ensure lower electricity prices for consumers, he did not clarify how this would be achieved or the implications for greenhouse gas emissions.
Experts warn that new gas projects could exacerbate climate issues and delay renewable energy adoption.Critics are concerned that subsidizing existing gas plants could lead to significant financial benefits for fossil fuel companies, potentially creating “windfall gains.”
Chris Bowen, the Minister for Climate Change and Energy, countered that the capacity investment scheme aims to introduce new energy sources and noted that fast-starting gas plants do not require government support.
He questioned the rationale behind offering subsidies to existing gas producers when renewable energy remains the most cost-effective option.
Experts like Dylan McConnell from the University of New South Wales have highlighted that the current market analysis indicates Australia does not require additional gas capacity at this time.
Activists and environmental organizations have criticized the Coalition’s stance, arguing that it prioritizes corporate interests over consumer benefits and environmental sustainability.
With growing scrutiny of gas exports’ climate impacts, including findings that liquefied natural gas (LNG) may produce more climate pollution than coal, the call for a shift toward cleaner energy alternatives is becoming increasingly urgent.
The Greens leader, Adam Bandt, has vowed to oppose any gas subsidies, emphasizing the need for a transition to renewable energy solutions to combat climate change effectively.