Submission: Strategic phase out of fossil fuels for future-proofed green industries

21 November 2023
To maintain and attract capital for Australia’s transition to net zero emissions, actions in different sectors must add up to and be consistent with the Government’s stated policy objective of limiting climate change damages above 1.5oC. The Future Gas Strategy should be aligned with this objective and be embedded within a credible set of sector decarbonisation plans. 

Australia has ratified the Paris Agreement and natural gas will need to be phased out with other fossil fuels to meet the objectives of this Treaty. Australia’s fossil fuel phase out strategies should be aligned with limiting temperature rise to 1.5°C (with limited or low overshoot).

To support a least-cost, just and orderly transition to net zero emissions, as part of the following year’s sectoral decarbonisation planning process, the Government should consider:

  • Setting a clear deadline for gas phase out in the Australian economy, in line with the Government’s policy of limiting climate damages above 1.5oC.
  • Not providing subsidies to the fossil fuel industries such as for (energy sector) Carbon Capture and Storage, and blue hydrogen.
  • Focusing Government resources on supporting and diversifying the economies of communities impacted by the transition away from fossil fuels and towards industries that have a long-term future in the Australian and global economy (e.g. green hydrogen).
  • Exploring mechanisms in approvals processes that fast track “climate-friendly” projects, create investment clarity around approval process, and ensure robust consideration of community and environmental impacts.

Read the full submission.