Climate Policy Engagement Analysis
Climate Policy Engagement Overview: The Australian Pipeline and Gas Association's engagement on climate regulation has been mixed and, while supporting some policy, appears generally unsupportive of ambitious action on climate change which could impact the role of natural gas in the energy mix.
Top-line Messaging on Climate Policy: The APGA’s top-line messaging on climate policy appears to be positive. On it's a corporate website in 2022, it states that it recognizes the science of climate change, and it is supporting the Paris Agreement. Through 2022 consultation responses, APGA has also communicated its support for a net-zero Australia by 2050.
Engagement with Climate-Related Regulations: APGA appears to have hold mixed positions on specific climate-related policies. In November 2022, APGA submitted a response to the New South Wales Climate Action Plan, in which it stated support for NSW’s 2030 greenhouse gas target, but did not appear to support regulation that would aim to limit emissions in the state. In September 2022, the association submitted a response on the Safeguard Mechanism Reforms, where it did not appear to support ambitious reform of the policy. It stated that it was ‘concerned that the foundation of the existing Safeguard Mechanism, its supporting schemes and frameworks, and some features of the reforms themselves risk undermining Australia’s least cost emissions reduction goals.’ adding that facilities should not be penalized for coal to gas switching even if it increases emissions. APGA did however state support for Australia’s updated 2030 greenhouse gas target.
Positioning on Energy Transition: APGA appears to be advocating for the continued role of fossil gas in the energy mix with high intensity, while also promoting the role of ‘renewable fuels’ and does not appear to support electrification. On its corporate website, accessed in November 2022, it stated that it ‘considers it consistent with a strong climate ambition that the use of natural gas as it is today, continues in direct heat and power generation applications. It also appeared to not support renewables becoming the dominant energy source, adding that ‘renewable gas is the lower-cost option to transition to net-zero’. In its consultation response on NSW’s climate action plan, it advocated for fossil gas switching to be recognized and facilities to not be penalized for increasing emissions as a result. Previously, in February 2022, APGA also commented on the Australian Energy Market Operator’s Integrated System Plan, in which it appeared to support the ‘step-change’ scenario and advocated for a greater role for hydrogen over electrification while also appearing to advocate for fossil gas to play a greater role and called for new gas powered generation in the coming decades to support 'variable renewable generation'.
APGA also appears to be supporting the role of gas and liquid fuels in the decarbonization of transport. In October 2022, it submitted a response on Australia’s Electric Vehicle Strategy in which it appeared to support the strategy but appeared to advocate for hydrogen vehicles and charging infrastructure to play a dominant role and did not appear to state the need to decarbonize hydrogen production without taking a clear position on EV's. APGA CEO Steve Davies also appears to not support a reduction of fossil gas in the energy mix. In an August 2022 press release, he stated that the easy transition to affordable renewables were ‘myths’ and more gaseous fuels would be required to avoid a similar energy crisis as seen in 2022.