From this mornings Fin review. Labour paints itself into the corner......not financial advice DYOR
GLTAH.
Federal Labor has embraced the use of gas as critical to achieving net zero emissions by 2050, bringing it in line with the views of the Morrison government.Its draft policy platform, to be debated at the party’s national conference in late March, also embraces the use of carbon capture and storage technology to help achieve emissions reduction.Pointedly, the platform makes no mention of using CCS to prolong the use of coal-fired power but envisages using it for “abating carbon pollution and ensuring industries like heavy manufacturing and gas production are able to play their role in meeting carbon pollution reduction goals consistent with achieving the goals of the Paris Agreement”.Coal receives just one mention the 115-page document in which Labor pledges to establish a statutory authority to help workers in power stations and associated mines transition to new industries.“The authority will, as a minimum, have the power to implement job transfer schemes for workers in coal power stations and associated mines allowing for voluntary redundancy and redeployment opportunities to be shared across sites and the capacity to develop and implement economic development programs for impacted regions,” it says.AdvertisementEnergy Minister Angus Taylor will release his own $50 million Carbon Capture, Use and Storage (CCUS) Development Fund on Monday to help establish pilot projects on the yet-to-be established technology.The Labor platform reaffirms the commitment to net zero emissions by 2050, something the Coalition has yet to adopt but is inclined towards, and also confirms the party will commit to medium-term targets consistent with the 2050 goal.It does not stipulate whether Labor’s next interim target will be 2025, 2030 or any other date.Prime Minister Scott Morrison has already outlined his own plan for gas to act as a transition fuel to provide baseload power and back up renewables as the country moves towards clean energy.‘Critical role’Labor’s policy says gas, including the extraction of coal seam gas, is critical to achieving net zero by 2050 by acting as a firming fuel for renewables.“Labor recognises and supports the critical role that gas plays in the Australian economy. Labor recognises that gas has an important role to play in achieving Labor’s target of net zero emissions by 2050,” the platform says.“Labor recognises that gas-power generation has a critical role to play infirming the National Electricity Market (NEM) to ensure reliability and price affordability as it transitions to net zero emissions and as other technologies emerge.”Despite this, Labor still intends to block a bill that would bolt on to the Clean Energy Finance Corporation a $1 billion Grid Reliability Fund, designed to enable gas to be used as a firming fuel for renewables. It says gas should not be underwritten by taxpayers.On coal seam gas, it says Labor will support the “gas extraction industry”, which includes “support for new gas projects and associated infrastructure, subject to independent approval processes to ensure legitimate community concerns are heard and addressed.”The embrace of gas represents a victory for the Right faction after the Left, led by former climate change and energy spokesman Mark Butler, spoke out against Mr Morrison’s gas transition plan.
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