More so than most countries, Australia has an abundance of low-emission energy resources such as solar, wind, geothermal (“hot rocks”) and natural gas that can meet our electricity needs for the foreseeable future. Not only that, these resources provide clean electricity, with low or no harmful greenhouse gas emissions.

An ecologically and economically sustainable, robust economy is within Australia’s grasp. We have the natural resources, the technologies, and innovative businesses raring to go. The only thing missing is the unified political will that would propel Australia into a clean, sustainable and healthy future.

About 35% of Australia’s greenhouse-gas pollution –mainly carbon dioxide – comes from our heavy reliance on coal-fired electricity to power homes, factories and offices. And demand for energy is rising rapidly. 

• NATURAL GAS – Natural gas, when used in combined cycle gas turbines, produces power at an emissions intensity of around 0.37-0.4 tonnes carbon dioxide per megawatt hour (CO2/MWh). This is dramatically less – about one-third – of the CO2 generated by coal. Large quantities of natural gas are available here much more cheaply than in Europe and America.
• ENERGY EFFICIENCY – The scope for cost-effective improvement in Australia’s efficiency of energy use is very large (reductions in consumption ranging from 10% to as high as 60% across sectors).
• BIOENERGY – electricity derived from biological matter is greenhouse neutral and available in large quantities in Australia due to extensive left-over agricultural waste. 
• WIND – Australia’s southern coastline is exposed to the Roaring Forties winds, providing a resource that delivers excellent, comparatively high capacity factors. Our wind speeds are considerably better than those in Europe, where the greatest amount of wind capacity has been installed. 
• SOLAR – Australia has the highest solar irradiation of any continent in the world and has a number of markets where distributed solar photovoltaics have particular strengths.

In addition to the technologies already in the market, Australia’s geothermal resource holds tremendous promise for providing multi-gigawatt, constant-output electricity. 

Clean energy: why on earth aren't we using it? 

The importance of reducing greenhouse emissions is broadly accepted. Business leaders, governments, and researchers worldwide are reaching unprecedented agreement about what now needs to be done to make the transition to a “low-carbon economy”. In mid-2006 the fifth largest economy in the world, the US state of California, imposed the US’s strictest carbon emission laws ever. 

Barriers and solutions

The key way to tackle climate change is to improve energy efficiency and increase the deployment of clean energy –technologies like solar, gas and wind, which come from low or no-emission fuel sources – by gradually reducing our dependence on polluting coal.

Although coal is likely to remain a significant energy source for many years to come, Australia can and should make more use of its clean energy riches.We need to plan now for a new, affordable energy mix that incorporates and values these clean technologies.

Governments need to instigate market-based policies such as:

• A robust, national renewable energy target
• A value placed on pollution via a carbon dioxide pollution tax and/or caps on carbon dioxide pollution
• Minimum standards for energy efficiency
• The addressing of energy market barriers to clean energy

Whenever Australian governments have made cleanenergy-friendly policies businesses have responded swiftly and with zeal.

For example, the successful Mandatory Renewable Energy Target (MRET) operational in 2001, required electricity retailers to draw a modest 9500 gigawatt hours, or 2% of electricity, from renewable energy sources by 2010.  This low target has been reached ahead of schedule. As a consequence clean energy investment is languishing while other countries steam ahead.

As well as driving investment in clean energy and giving some certainty to investors, MRET generated significant job opportunities, especially in regional Australia. A report by Ellis and Associates estimated total direct employment of 6,189 in the renewable energy industry in 2002-03.  Employment in the sector since 1999 grew by 2,014 fulltime equivalent jobs across all states and territories. 

Various state governments in Australia have “gone it alone”, setting their own renewable targets and greenhouse policies. Victoria, New South Wales and South Australia have been particularly proactive.

In short, small steps have been taken by Australian governments but it has not been enough to halt our escalating emissions.

The future could be bright

The Clean Energy Future for Australia study found that bioenergy, natural gas, wind, hydro and solar heat should be the main contributors to a clean energy mix by 2040. Fossil fuels still play an important part in the electricity generation scenario of 2040, with natural gas, as the cleanest of the fossil fuels, the main substitute for coal.

We need to begin the transition to a low-carbon economy by expanding the role of renewables and other existing technologies in Australia’s coal-dominated energy mix. If we don’t start planning now, the economies, ecologies and societies in our children’s lifetimes will pay a much higher price.We owe it to them, and to the sustainability of our markets and our unique environments, to leave a better legacy than that.

Ric Brazzale is the Executive Director of the Australian Business Council for Sustainable Energy (BCSE), the peak industry body representing the sustainable energy industry in Australia.

www.bcse.org.au