In a world racing to combat climate change, an unlikely hero may be emerging from down under. Australia, long known as a fossil fuel superpower, now finds itself uniquely positioned to champion the global transition to clean energy – and reap the economic rewards in the process.
The Decline of King Coal
For decades, Australia’s prosperity has been tied to its vast reserves of coal and natural gas. The nation’s fossil fuel exports are responsible for a staggering 3% of global carbon dioxide emissions when burned overseas – far exceeding Australia’s domestic greenhouse gas output.
But as the world moves to decarbonize, demand for these polluting energy sources is set for a long-term decline. The International Energy Agency projects that under current climate pledges, global coal use will plummet 88% by 2050, while natural gas consumption will drop 44%.
Rather than clinging to a fading industry, Australia now has an opportunity to embrace an alternative path – one that positions the nation as a leader in the clean energy revolution.
Harnessing the Power Down Under
Australia’s ace in the hole is its practically unlimited potential for solar and wind power generation. Blessed with wide open spaces, ample sunshine, and steady coastal breezes, the continent is a renewable energy paradise.
But the opportunity extends far beyond just exporting surplus electricity. Australia’s abundant clean power could be harnessed to produce a range of energy-intensive commodities that are currently made using fossil fuels.
Our continent could become a major producer and exporter of energy-intensive products like iron, aluminium, fertiliser and synthetic fuels that are currently made elsewhere using copious amounts of coal, gas and oil.
– Frank Jotzo, Professor at ANU Crawford School of Public Policy
By utilizing renewable power to manufacture these “green” materials, Australia could displace significant carbon emissions from industrial processes around the globe. Estimates suggest that if Australia used clean energy to process all of its iron ore and alumina exports, while also producing green hydrogen and synthetic fuels, it could prevent up to 4% of global CO2 emissions.
Leading the Charge on Climate
The economic and environmental potential of this clean energy export pivot is immense. But just as importantly, it represents a chance for Australia to reposition itself as a climate leader on the world stage.
As host of the upcoming COP31 climate conference, Australia can seize the moment to announce ambitious goals around growing its green exports while phasing out coal and gas. Setting a target for the nation’s export-related emissions impact to go from positive to negative over time would send a resounding message.
Such a declaration from a major fossil fuel exporter would inject some much-needed optimism and momentum into global climate efforts. It would signal that even those economies most entangled with coal and gas can envision a prosperous future without them.
A New Era for the Lucky Country
Ultimately, the path forward for Australia is one of economic diversification and leadership in emerging clean industries. Becoming a green commodities superpower will require visionary policies, massive investments, and international partnerships.
But if the country can summon the ambition to match its renewable potential, it has the chance to write a new chapter – one in which Australia’s greatest contribution to the world is not the fuels that imperil it, but the clean energy solutions that can help save it.
As the world watches, it is time for Australia to decide if it will cling to the fading glories of yesterday, or boldly reach for the opportunities of tomorrow. The fate of the planet may hang in the balance.
