Australia’s Coal Paradox: Leading the Transition While Selling the Problem

Australia has joined a new UN coalition to end new coal power, marking a significant shift in national energy policy. Yet, this bold commitment is overshadowed by the country’s status as the second-largest thermal coal exporter globally.

Australia’s renewable energy sector is flourishing:

Solar now generates over 25% of electricity, pushing coal below 50% of generation for two consecutive months.

With 25 GW of rooftop solar expected by year-end, combined solar and wind energy contributes 40% of electricity generation since September.

Compared to 2015, when renewables made up only 7%, Australia has rapidly become a global leader, achieving the world’s highest rooftop solar share.

Despite these advancements:

Coal exports remain stable, with 2022 production at 8.39 exajoules, over 170% higher than 1990.

The government recently approved three new coal extensions, enabling coal exports well into the 2040s.

This stark contrast creates a diplomatic dilemma. While advocating for coal phase-outs internationally, Australia profits from coal exports, raising questions about its credibility.

Australia can reconcile this split by:

1. Gradually reducing coal production to align with domestic energy goals.

2. Implementing a Just Transition plan to retrain workers and foster new industries in coal-dependent regions.

3. Addressing methane emissions from mines to mitigate short-term climate impacts.

Australia’s renewable energy progress is a model for global energy transitions. However, without a coherent plan to phase down coal exports, its leadership risks being undermined by its own actions. Balancing domestic achievements with global responsibilities is essential to maintain credibility on the world stage.

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