Coalition comeback as Labor approves gas expansion | Insiders | ABC News

Key Concepts

Donald Trump's tariffs, Albanese government challenges, Coalition disunity, Net Zero review, Climate Change targets, Northwest Shelf Gas Project extension, Emissions data, Renewable energy, 2035 climate target, Carbon tariff, Defense spending, Productivity, Political journalism.

Donald Trump's Trade Hit

Donald Trump has vowed to double tariffs on steel and aluminum imports to the United States, raising them to 50%. The Australian government has stated that this is "not the act of a friend" and will harm American consumers. This move adds to global volatility and presents a challenge for the Albanese government in dealing with an unpredictable ally.

Coalition's Internal Conflicts

The Federal Liberals and Nationals are officially back together, but significant policy differences, particularly regarding net zero, remain unresolved. Key figures demoted in the front bench shakeup are showing signs of discontent.

• Net Zero Review: The coalition will review its commitment to net zero by 2050. David Littleproud stands by the commitment, but others, like Barnaby Joyce and Matt Canavan, oppose it.
• Shadow Ministry Shakeup: Jane Hume was dropped entirely from the ministry, causing disappointment. Justinda Price, while remaining in the outer shadow ministry, expressed dissatisfaction with some appointments.
• Generational Change: Despite claims of generational change, two Nationals MPs, Barnaby Joyce and Michael McCormack, will now be on the back bench.

Government's Climate Change Challenges

New data indicates that Australia's emissions flatlined last year, with a slight increase of 0.05% overall. The decision to greenlight the extension of the Northwest Shelf Gas Project has raised questions about meeting climate targets.

• Emissions Data: Industrial sector emissions fell by 5%, and agriculture emissions fell by 2%. However, electricity sector emissions rose by more than 2%, as did the transport sector.
• Renewable Energy: Renewable energy accounted for 46% in the last quarter of the previous year and 43% in the first quarter of this year. 15 gigawatts have been added since the current government took office.
• Northwest Shelf Gas Project: Woodside has been given the green light to extend its Northwest Shelf project in Karratha until 2070. Economist Chris Richardson says the way we tax gas is a massive fail. The Graten Institute says the extension won't help power prices or reliability.

Interview with Chris Bowen, Minister for Climate Change and Energy

Chris Bowen discussed Australia's progress towards net zero and the challenges ahead.

• 2030 Target: Bowen remains confident that Australia can achieve its target of reducing emissions by 43% by 2030 and having 82% renewables by 2030.
• 2035 Climate Target: The 2035 climate target will be ambitious and achievable, based on independent advice from the Climate Change Authority. The UNFC has asked countries to set their targets by September.
• Donald Trump's Influence: Donald Trump's policies and potential withdrawal from the Paris Agreement are being considered in setting the 2035 target.
• Carbon Tariff: Australia is considering a carbon tariff or carbon border adjustment mechanism to ensure Australian industry can compete in a decarbonizing world. Professor Frank Yatso is advising the government on this matter.
• Northwest Shelf Gas Project and Safeguard Mechanism: The Northwest Shelf Gas Project is responsible for about 1.4% of Australia's emissions and is legally obliged to meet net zero by 2050 under the safeguard mechanism. The safeguard mechanism requires facilities to reduce emissions by 4.9% a year.
• East Coast Gas Reservation: The government has added 640 petajoules of domestic gas and will review existing gas mechanisms to see what more can be done.

Panel Discussion on Climate and Energy

The panel discussed the implications of the Northwest Shelf Gas Project extension and the challenges of achieving renewable energy targets.

• EPBC Act: The EPBC Act, under which the Northwest Shelf extension was approved, does not have a specific mechanism on climate.
• Scope 3 Emissions: Australia should start taking responsibility for the fossil fuels it exports overseas.
• Renewable Energy Targets: Concerns were raised about whether Australia can achieve 82% renewables by 2030, especially with states like Queensland cancelling renewable projects.
• Gas as a Firming Power: The government is relying on gas as a firming power to support the expansion of renewables.

Panel Discussion on Donald Trump's Tariffs and Defense Spending

The panel discussed Donald Trump's proposed tariffs on steel and aluminum and the implications for Australia.

• WTO Challenge: Australia is unlikely to have success in challenging the tariffs through the WTO.
• Defense Spending: The US is urging Australia to increase defense spending, but the panel questioned the practicality and necessity of setting a specific percentage of GDP for defense.
• US-China Relations: Pete Hegath's aggressive language on Taiwan is alarming, and there are questions about the US's capacity to intervene in the region.

Conclusion

The Albanese government faces significant challenges in navigating international trade tensions, achieving climate targets, and managing domestic political divisions. The Coalition grapples with internal disunity and policy disagreements. Key decisions, such as the Northwest Shelf Gas Project extension, highlight the complexities of balancing economic interests with environmental concerns. The future direction of climate and energy policy will depend on factors such as international cooperation, technological advancements, and domestic political dynamics.