The economy of the Environment by Max Tobin
By Max Tobin
Energy is not a zero-sum game. It's not as simple as fossil fuels are bad, renewables good or vice versa. If we look at it from a Liberal perspective, it's about finding a future solution with positive outcomes without harming the present and using common sense.
For the best part of thirty years, Australia’s Federal energy policy has been ravaged by partisan dissonance, preventing any meaningful outcomes from being achieved. Since Bill Shorten’s disastrous 2019 election campaign, Labor has been reticent to provide a path to renewables and the Federal Liberals have been struggled to come to consensus.
Renewable energy is no longer a political question, but an economic one that is best answered by a government with a proven track record of economic success. We don’t want to leave behind corporations that have already seized the future, we have to structure our policies to allow for future growth, not just present gain.
A lot has changed since the energy conversation first began.
Firstly, the global attitude towards emissions has drastically changed. The global economy has already realized that the future is a decarbonized one. Our two biggest trading partners have already committed to net-zero targets. China, by 2060 and the US, by 2050. Not to mention the countless other countries such as Germany, South Korea, France and New Zealand who have already committed to similar goals.
Australia could be in a position to extraordinarily benefit from this paradigm shift.
Australia has some of the best renewable resources in the world that we can use to profit from the decarbonized world. With more of our trading partners decarbonizing, Australia’s resources will become even more vital, the demand for our coal will be replaced by demand for our sun, wind and energy storing technology. This provides us with an opportunity to create new industry, new jobs and allow us to guarantee our future prosperity. Thirty years ago, reduced emissions would have likely damaged our economy and made us uncompetitive. Now, if we do not reduce our emissions and retrain our already highly skilled energy sector workforce, we risk blowing our lead and losing out financially.
The beauty is it's not just our exports that benefit, but everyday Australians too.
The cost of renewables has drastically plummeted. Now the cheapest forms of energy are no longer coal and gas, but wind and solar. Not only are these energy sources the cheapest, but also the most reliable, according to the AEMO. By not progressing, we are short-changing the Australian public - they are paying more, for a worse product. Furthermore, the private sector has already realised this, by 2030 almost all of the Big Four banks and insurers have stated they will not fund any more thermal coal power stations and in the next fifteen years, four of the five coal fired power stations in NSW will reach the end of their life. It is an inherently unliberal principle to prop up industry which the market deems inefficient, less profitable and worse for the consumer.
This is why the NSW Liberal’s roadmap is perfect. It is predominantly focused on affordability and allowing the market to decide. Whilst clean energy is a welcome by-product, it is not at the expense of the consumer. They are a Liberal government that is focused on low-cost energy, job growth and a secured prosperous future. This is what a true Liberal government is about.
Ultimately, Liberal governance is about allowing the market and the public to decide what’s best for them. It's about freedom to choose, freedom to prosper and a secured future. The future of Australia relies on our energy policy, let's not get left behind.
Disclaimer: none of the articles contained within reflect the official political position of the club; they only represent the personal views of the contributor.