Is the Nev Power/Matt Canavan plan for a gas-fired economic recovery wrong? A new Ernst & Young (EY) report "argues replacing fossil fuels with renewable electricity and hydrogen will be better for the economy".
Commissioned by the WWF and backed by the Business Council (BCA) and Aus Industries Group (AIG) and Newcastle steel manufacturer Molycop https://molycop.com/who-we-are/ (EY, BCA and AIG are yet to post on their websites)
"The report found some proposed measures — such as fast-tracking renewable projects already in the pipeline — would cost the taxpayer very little and create an estimated 58,000 new construction jobs.
"A further five measures, costing about $2 billion over the forward estimates, would generate nearly $10 billion in economic benefits and create a further 45,000 jobs, according to a WWF analysis of the figures.
"These measures are: Investment in manufacturing to reduce use of gas and build new clean-technology export industries. Cost: $520m Jobs: 22,000 Make Australia a leading global battery manufacturer. Cost: $500m. Jobs: 7,800 Make all buses electric. Cost: $240m Jobs: 10,000Subsidise solar for community organisations. Cost: $500m Jobs: 5,000Accelerate the renewable hydrogen industry. Cost: $225m. Jobs: 1,200 "A clean stimulus package can address issues holding back renewables and get the ball rolling on more than 100,000 jobs," Ms Ison said. According to EY and WWF, the aims could be achieved by a mix of tax incentives, direct subsidies and regulations."
Around the world, renewables-led economic recoveries have been urged by the UN and the EU. "As we spend trillions to recover from COVID-19, we must deliver new jobs and businesses to a clean, green, and just transition," said Antonio Gueterres, the secretary-general of the United Nations at a recent conference.
The Canavan/Power Plan has significant deficiencies especially regarding the removal of the moratoria on coal seam gas extraction and removal of environmental regulations. The plan is rapidly developed by Nev Power whose last major role as Chief Operational Officer for FMG (2011-2018).
Reported in the AFR Mr Power has distanced himself from the plan. "Speaking to a Senate committee considering the government's response to the COVID-19 pandemic, Mr Power said the interim plan wasn't the view of the commission and was the work of Mr Liveris' team. "The leaked report doesn't reflect the views of the commission."
The commission is not recommending any subsidised delivery of gas or any other energy system but we have talked about the provision of infrastructure to reduce the cost of transportation and delivery lower costs."
The focus that we have been approaching is how do we accelerate the recovery of the economy."
