Energy policy continuity in new Cabinet

Prime Minister Anthony Albanese’s full ministry will be sworn in on Tuesday morning with the existing energy transition team joined by a new advocate for industrial decarbonisation and a special envoy who will be put through her paces if Australia hosts COP talks.

• Chris Bowen was re-appointed Minister for Climate Change and Energy
• Murray Watt was named as Environment Minister, with Tanya Plibersek moved to Social Services
• Tim Ayres replaced self-described nerd Ed Husic as Industry and Science Minister
• Josh Wilson retained his role as Assistant Minister for Climate Change and Energy
• Madeleine King was re-appointed as Minister for Resources and Northern Australia
• Kate Thwaites will be Special Envoy for Climate Change Adaptation and Resilience.

Carbon Market Institute CEO John Connor said continuity was very welcome but credibility would be quickly tested with a still pending 2035 target, which should be 70%+ and backed by net zero plans with a clear carbon market strategy, broadening and deepening industrial and Safeguard policy, as well as accelerated ACCU integrity and method progress. He said Murray Watts and Tim Ayres were “powerful appointments” to Environment and Industry to carry on nature repair reform and net-zero industry work of their predecessors.

Lobby group Minerals Council of Australia said the industry was ready to work with the new Ministry to support the government’s economic and environmental ambitions. “We also look forward to working with Treasurer Jim Chalmers on his productivity agenda and with returning Minister for Climate Change and Energy Chris Bowen to achieve affordable, reliable and clean energy,” CEO Tania Constable said.

Liberal shenanigans continued ahead of Tuesday’s party room showdown as the wannabe populists shirtfront the moderates. Former energy minister Angus Taylor is running on a joint ticket with Jacinta Nampijinpa Price - described by one pundit as creating “a parliamentary wing of Sky News” if victorious. Current shadow energy minister Ted O’Brien is in the running as deputy if more centrist Sussan Ley wins the leadership ballot. Former assistant minister for energy Tim Wilson, who has claimed victory over independent Zoe Daniel, is reportedly considering a tilt but could wait for the bloodbath to drain.

The National Party on Monday retained David Littleproud as leader and Bridget McKenzie as Senate Leader. Michael McCormack, a former leader, said all policies were on the table.

“We need to look at all manner of things, it’s not just net zero, it’s not just nuclear,” he told reporters in Canberra. He rejected the premise that the nuclear policy helped to wipe out the Liberals and warned against dropping a policy simply because the vote didn’t go their way.

The remaining Greens will strive for an elegant consensus when they meet on Thursday, perhaps opting for co-leaders.

Where to from here?

Methane action to offset credibility leakage

Relying on carbon offsets instead of abatement action could cost Glencore up to US$492 million annually by 2050, IEEFA warned in a briefing note.

Further, Glencore’s continued reliance on old-school emissions estimation methods and lack of independent verification - despite the availability of satellite or aerial monitoring - may result in underreporting and increased regulatory risk in the future.

Multiple studies indicate methane drainage at open-cut coal mines in Australia could present net economic benefits and help Australia become a global leader in emissions accuracy and satisfy investors looking for adequate climate risk reporting.

IEEFA cited a recent study by UNSW researchers for the UN Environment Programme that suggested methane emissions from the Hail Creek mine could be up to eight times higher than disclosed, which Glencore dismissed at the time as using flawed methods.

“Abating fugitive methane emissions at open cut mines is technically and operationally challenging and there is currently not a proven and effective abatement option,” a Glencore spokesperson told The Energy.

“Typically, open-cut mines are shallower than underground mines, have lower gas contents, and mining activities target multiple coal seams of varying thickness, all of which are barriers to effective gas drainage. In addition, there is a need to manage safe interaction between active mining processes and gas drainage activities, while allowing adequate time for gas capture prior to mining.”

Each of Glencore’s coal operations in Australia is fully compliant with its Safeguard Mechanism obligations and the company denied it was expanding coal production in Australia.

“We have been clear about our plan to responsibly manage the decline of our thermal coal assets over time; in the last three years we have closed our Newlands, Liddell and Integra coal mines in Australia and plan to close at least three more – Clermont, Oaky North and Mangoola – by the end of 2035,” the spokesperson said.