The Australasian Centre for Corporate Responsibility (ACCR) is commenting on AEMO’s Gas Statement of Opportunities 2022, released today.
Dan Gocher, Director of Climate & Environment at the Australasian Centre for Corporate Responsibility (ACCR) said:
“AEMO has confirmed that in order to avoid a gas shortfall in 2023, governments at all levels must incentivise energy efficiency measures and electrification in order to reduce gas demand in line with the Step Change scenario.
“The solution to the remote possibility of gas shortfalls is not more supply, but less demand. The only party arguing for more supply is the oil and gas industry.
“The uncertainty of the forecasts rests on government policy to reduce demand, and the potential use of fossil gas to produce hydrogen. The latter must be avoided, and priority given to renewable hydrogen.
“Fossil hydrogen makes no economic sense - it’s the equivalent of double taxation. Paying for a resource to make a resource is ludicrous - especially when you could create hydrogen with free renewable energy.
“While some local councils have taken the lead on phasing out gas connections to new buildings, state governments must take more action to reduce gas demand.
“The Victorian Gas Substitution Roadmap presents a huge opportunity to lay out a plan to get Victorians off gas as quickly as possible.
“Gas industry scare campaigns about shortfalls and demand destruction must be called out for what they are: opportunism and blatant self-interest.
“The IEA recently published a 10-point plan to wean Europe off Russian oil and gas. Australia should borrow those ideas and reduce gas demand in favour of efficiency and electrification, as quickly as possible.”
IEA’s 10-point plan to reduce the European Union’s reliance on Russian natural gas.