APPEA calls for the end of Australia’s oil and gas industry
The Australasian Centre for Corporate Responsibility (ACCR) is welcoming APPEA’s newly announced commitment to net zero emissions by 2050, as it implies the end of much of Australia’s oil and gas industry.
Commenting on APPEA’s updated principles, Dan Gocher, Director of Climate & Environment at the Australasian Centre for Corporate Responsibility (ACCR) said:
“APPEA says it supports climate action, but refuses to acknowledge that Australia’s LNG industry has contributed the fastest growing emissions over the last decade.
“The sooner APPEA and its members acknowledge that the LNG industry simply cannot grow any further, the more chance Australia will have of meeting its Paris targets.
“While APPEA’s support for net zero emissions by 2050 is welcome, we’re not convinced APPEA understands what that means: the end of much of Australia’s oil and gas industry.
“APPEA continues to live in a dream world where it claims offsets and unproven technologies such as carbon, capture and storage (CCS) will solve the emissions problem.
“This is simply delusional.
“While referring to the IPCC’s Special Report on Global Warming of 1.5°C, it ignores the IPCC’s conclusion that in the absence of CCS, the share of primary energy provided by gas must decline by 20-25% by 2030, and by 53-74% by 2050 (relative to 2010). This implies the end of much of Australia’s oil and gas industry.
“Throughout the policy document, APPEA makes a number spurious claims, including:
Calling for the unlimited use of international offsets—because dodgy offsets are the cheapest way for its members to ‘reduce’ emissions;
Stating that developing countries need affordable energy—when gas is more expensive than almost all the alternatives;
Claiming that Australia’s LNG exports are displacing coal in Asia—when there is little evidence to suggest this is actually happening.
“But perhaps most brazenly, APPEA claims to have long supported climate policy in Australia, despite campaigning against the carbon price throughout 2012-14, and more recently campaigning against EPA guidelines in Western Australia in 2019.”
stationary energy excluding electricity sector emissions increased 55.5% (or 36.6 Mt CO2) between 1990 and the year to June 2020;
fugitive emissions increased 38.6% (or 13.9 Mt CO2) between 1990 and the year to June 2020; emissions were relatively stable until 2015 when emissions increased strongly as a result of the growth of the LNG industry offset in 2020 by carbon capture and storage and a reduction in flaring activities.
APPEA’s 2015 policy principles compared to its 2021 policy principles:
Old Policy Principles (Dec 2015)
New Policy Principles (Feb 2021)
1. International engagement is crucial 2. Climate change and energy policies must be integrated and harmonised - Maintain competitiveness of LNG 3. Climate change adaptation strategies are necessary 4. Climate policy must not compromise national or global economic development or energy security
1. Net zero emissions by 2050 should be the goal of national and international policy 2. Climate policies should be efficient, enduring and integrated with economic, social, technology and energy policies 3. Australia’s international competitiveness should be enhanced 4. Universal access to affordable, reliable, sustainable and modern energy must be achieved
Get email updates about new ACCR research and shareholder advocacy on specific topics of interest to you.
ACCR’s climate program aims to accelerate the energy transition to a low carbon economy in line with the Paris Agreement. We engage with listed companies on their climate risk disclosure and the need to set emissions reduction targets consistent with the Paris Agreement, and we also push for reviews by listed companies of their industry associations’ climate policy advocacy.