JAPAN plans to double its renewable energy target for 2030 and, at the same time, halve its use of gas, a move that could pull the rug out from Australia’s already flimsy gas-led recovery plans, according to the Climate Council.

“Japan is one of Australia’s biggest export markets for LNG. This development could undermine the Federal Government’s support for new gas earmarked for export,” Climate Councillor and energy expert Madeline Taylor said.

“The government has allocated tens of millions of dollars into opening up new gas basins like the Beetaloo basin in the NT and the Bowen and Galilee basins in Queensland, but it’s not clear this spending is necessary, given the growing uncertainty around having buyers for this gas,” Dr Taylor said. 

The revised figures, laid out in a draft plan by Japan’s Ministry of Economy, Trade and Industry, report renewables should account for 36-38 percent of power supply in 2030, double the 18 percent level in March 2020. 

Meanwhile, the share of liquefied gas in Japan’s energy mix is set to drop by almost half from 37 percent today to around 20 percent in 2030. 

“Japan’s revised energy plans come months after US President Joe Biden’s Leaders Summit on Climate, where Japan pledged to slash emissions 46 percent from 2013 levels by 2030, up from its earlier goal of 26 percent,” Dr Taylor said. 

“In contrast, Australia has not adopted a binding net zero emissions target, nor has it raised the ambition of its 2030 target, which is well below scientific recommendations. Japan’s move shows global momentum for climate action is accelerating. This creates economic risks for Australian LNG exports, which represent up to 82 percent of Australian gas production. 

“As one of the sunniest and windiest countries on earth, Australia could be generating and exporting renewable energy to meet rising global demand. The government must accelerate progress towards a renewables-powered economy instead,” Dr Taylor said.

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THE Parliamentary Joint Committee on Corporations and Financial Services will examine cutting edge developments in Australian financial services across three days of hearings next week.

On July 26 and 27, the committee will mainly consider the nature of commercial relationships and business models operating within the mobile payment and digital wallet financial services ecosystem.

On July 28, the committee will explore supply chain financing. Aspects of supply chain financing will also be examined in days one and two as two witnesses are scheduled to give evidence in relation to both inquiries.

Committee Chair, Andrew Wallace MP, said the mobile payment and digital wallet inquiry would provide the committee with an opportunity to understand the way mobile payments and digital wallets are developing as major players in Australia’s e-commerce ecosystem.

"Australians are usually early adopters of technology," Mr Wallace said. "Many of the submissions received so far have highlighted that Australia is emerging as one of the largest users of contactless payments in the world.

"COVID-19 has further escalated the adoption of digital payment options, so it is important for this committee to explore the commercial relationships and business models that currently support these popular payment methods,’ Mr Wallace said.

The committee is keen to hear from providers of these financial services about the relationship they have with merchants and vendors and how this influences the end user, the consumer. Consideration will also be given to international commercial arrangements and what impact these have on Australian consumers, competition, and pricing.

"In order for us to be on the front foot in delivering a safe and secure digital wallet system in Australia’s e-commerce landscape, we need to ensure the adequacy and performance of Australia’s legislation, regulations, self-regulation, industry codes, standards and dispute resolution arrangements," Mr Wallace said.

On the third day the committee will hear evidence related to the use of supply chain financing in Australia’s business environment.

"We know that the supply chain financing market in Australia has had a slower uptake than North America and Europe, for example, but we are nevertheless keen to get a greater sense of how this kind of financing is being used to support business operations in Australia and any associated risks," Mr Wallace said.

"The recent collapse of supply chain financing firm Greensill has thrown a spotlight on this finance mechanism and the committee considers that the time is right to take a preliminary examination of supply chain financing to determine whether the regulatory settings are fit for purpose prior to determining whether a full parliamentary inquiry should be undertaken."

Committee website: Parliamentary Joint Committee on Corporations and Financial Services – Parliament of Australia (aph.gov.au)

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THE Queensland Resources Council (QRC) has congratulated Senex Energy on signing a new gas supply agreement for up to 11 petajoules (PJ) of natural gas from the company’s Atlas operation in the state’s Surat Basin to supply Adbri’s South Australian manufacturing operations to 2030. 

QRC chief executive Ian Macfarlane said today’s announcement showcases the critical role Queensland’s gas industry is playing in boosting jobs in industry and manufacturing in other parts of the country.   

QRC member Senex has now signed almost 60 PJ of natural gas sales agreements - supplied from its Atlas operation near Wandoan - with a range of household names including CSR Building Projects, Orora, Visy Glass, CleanCo Queensland and Southern Oil Refining. 

“Senex’ Atlas operation is a domestic-only gas production tenure, which is only offered in Queensland, and ensures Australia’s manufacturing industries can access the gas they need to operate,” Mr Macfarlane said. 

“The QRC has always been a strong supporter of Queensland’s domestic gas policy and today’s announcement is another example of how this state continues to do all the heavy lifting to provide extra gas for the eastern Australian market. 

“Queensland’s resources industry is playing a critical role in keeping the Queensland economy working and we should make full use of our state’s abundance of renewable and non-renewable energy resources.” 

Senex has agreed to supply low-carbon cement manufacturer Adbri with natural gas for seven years from 2023.

www.qrc.org.au

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THE Australian Workers' Union (AWU) has welcomed the NSW Government's 'Future of Gas Statement,' which has reaffirmed the government's commitment to the Narrabri gas project as well as increasing pipeline infrastructure to provide access to markets.

The statement aims to provide industry, regional communities and farmers on the role gas will play in supporting economic prosperity and future land use for gas exploration.

AWU national secretary Daniel Walton said the Future of Gas Statement was an important clarification of the important role gas had to play in the future of the state.

"The Narrarbi gas project has the potential to help Australian workers in a range of ways and I'm glad to see the NSW Government commit to these today," Mr Walton said.

"Connecting NSW directly to the Australian Gas Supply Hub in Wallumbilla will be a crucial move, given the current pipeline has been at capacity during the current high market.

"Crucially, the AWU has long emphasised the important and special role gas has in supporting manufacturing. We are therefore very happy to see a Special Activation Precinct (SAP) at Narrabri underway to enable opportunities for energy-intensive manufacturing, like fertiliser and plastics manufacturing, to be located near a secure and reliable gas supply," Mr Walton said.

"Gas from Narrabri can complement renewable energy initiatives by firming the grid, and the strict regulations will ensure all production is harmonious with other nearby land uses.

"We also welcome the commitment to invest in opportunities for the use of hydrogen in hybrid with natural gas and eventually as a replacement fuel."

Mr Walton said while the bulk of the statement was positive, the continued commitment to LNG important terminals remained confusing.

"Australia has abundant gas reserves. The idea that we would be setting up facilities to 'import' gas via ships is bizarre and future Australians will scratch their heads that this concept was entertained," Mr Walton said.

"Australian buyers should not have to 'import' gas the same way gas-poor nations in our region have to. Local manufactures are lucky enough to operate in a country with abundant gas, they just need their governments to introduce measures to shore up affordable supply."

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