Australia must phase out coal by 2030 if it is to avoid catastrophic climate change and major disruption to the economy, according to the United Nation’s top climate adviser.
In his address to the 2021 Crawford Leadership Forum on 6 September 2021, Mr Selwin Hart, United Nations Assistant Secretary-General and Special Advisor to the Secretary-General on Climate Action, said the world is way off track from meeting the 1.5 degree Celsius goal of the Paris Agreement, “a critical threshold for preventing the worst impacts of climate change”.
The recent report of the Intergovernmental Panel on Climate Change shows Australia is among the places already being hardest hit, with land areas in Australia already 1.4C hotter than a century ago.
“If the world does not boost climate action urgently, Australia can expect climate disasters – such as droughts, heatwaves, fires and floods – to get more frequent and severe.”
Mr Hart said a prerequisite of keeping the 1.5 goal within reach is the urgent global phase-out of coal.
“Market forces alone show coal’s days are numbered, as many investors increasingly abandon it in favour of renewables, which are now cheaper in most places. The growing expectation of stranded coal assets is hastening coal’s decline.”
However, he said, this shift is still not happening fast enough to avert a global climate catastrophe.
“We fully understand the role that coal and other fossil fuels have played in Australia’s economy, even if mining accounts for a small fraction – around 2 per cent – of overall jobs.
“But it’s essential to have a broader, more honest and rational conversation about what is in Australia’s interests, because the bottom line is clear.”
Mr Hart said if the world does not rapidly phase out coal, climate change will wreak havoc right across the Australian economy: from agriculture to tourism and across the services sector.
“This is why…phasing out coal is the single most important step the world must take in the global climate fight.”
Mr Hart made it clear that the United Nations is not calling for any country to shut down its existing coal industry down overnight. Instead, it is calling for a coal-phase out by 2030 for OECD countries and 2040 for all others. Mr Hart said if adopted, this timetable would leave nearly a decade for Australia to ensure a just transition for its coal workers and others affected.
“Already we are seeing examples of policy-making in the European Union to deliver this transition in a way which is inclusive and just.
“Globally, investments in renewables generate three times more jobs than investments in fossil fuels.”
In response, Minister for Resources Water and Northern Australia, the Hon. Keith Pitt MP, said coal will remain a significant contributor to the Australian economy well beyond 2030 as global demand continues to grow.
“The future of this crucial industry will be decided by the Australian Government, not a foreign body that wants to shut it down costing thousands of jobs and billions of export dollars for our economy,” Minister Pitt said.
Coal is Australia’s second-largest export. In the three months to July this year, coal exports soared to $12.5 billion, which is a 26 per cent increase on the previous quarter. Australia accounts for 6 per cent of the world’s total annual production behind China (50 per cent), India (10 per cent) and Indonesia (7 per cent).
“Coal consumption throughout Asia is forecast by the International Energy Agency to grow over the next decade to meet the energy demands of countries like China, India and South Korea,” the Minister said.
“Australia has an important role to play in meeting that demand. Coal will continue to generate billions of dollars in royalties and taxes for state and federal governments, and directly employ over 50,000 Australians.”
Bravus, formerly Adani, will soon begin exporting thermal coal from its Carmichael Mine in Queensland’s Galilee Basin after striking the main coal seam earlier this year. The project is directly employing over 2000 people in regional Queensland. Furthermore, the Wollongong Coal’s Russell Vale Colliery metallurgical coal expansion recently received a final environmental approval and will create another 200 local jobs.
“The Coalition Government stands with our resources sector, including the coal industry,” the Minister concluded.
Video and audio of Mr Hart’s address can be found here.