Australia's future gas strategy: Corporate advocacy and industry narratives
This report analyses the responses to Australia’s Future Gas Strategy by corporate entities and industry associations from the country’s fossil fuel value chain. It sheds light on the advocacy for expanding fossil gas supply, which contradicts the science-based policies to meet global climate goals, while showing a lack of positive engagement from non-fossil fuel corporations.
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OVERVIEW
Overview of the future gas strategy
Australia’s Future Gas Strategy, released in October 2023, aims to guide fossil gas production, consumption, and substitution from 2021 to 2035 and 2050. The report emphasises shifting the country’s energy system toward net-zero emissions while recognizing the need to maintain an adequate supply of gas. Without a measured yet rapid phase-out of fossil gas, other sectors of the economy will be tasked with increased burdens in helping achieve the country’s emissions reduction targets by 2030 and 2050.
Advocacy on future gas strategy
Corporate entities and industry associations from Australia’s fossil fuel value chain overwhelmingly advocated for a fossil fuel future by pushing back on acknowledging fossil gas demand reduction in the strategy. 76% of the 34 respondents, including BP, Chevron, INPEX, Santos, and Woodside Energy, advocated in a manner that’s misaligned with the Intergovernmental Panel on Climate Change’s (IPCC) guidance on global gas use in 1.5°C decarbonisation pathways. The analysis also revealed attempts to include fossil fuels in Australia’s Capacity Investment Scheme for finance intended for renewables. Such actions would hinder or delay the transition to renewable energy systems and lock in fossil-fuel-based systems and institutions.
Fact checking industry narratives
The consultation responses revealed the use of several narratives that misaligned with key findings from authoritative bodies, including the IPCC, Australian Climate Change Authority, United Nations Environment Program, and Commonwealth Scientific and Industrial Research Organisation. For instance, the assertion that continued fossil fuel use aligns with climate goals, despite the IPCC estimating that emissions from existing fossil fuel infrastructures already exceed remaining cumulative net CO2 emissions in pathways that limit global warming to 1.5°C. Furthermore, the report found that the oil and gas industry pushed for new gas supply and investments while advocating for continued or increased fossil gas exports.
Recommendations
This report reveals the misaligned advocacy of entities from Australia’s fossil fuel value chain and highlights the need for supportive advocacy from positive corporate actors. The report recommends that companies and industry associations in Australia follow through on their supportive climate messages with active advocacy for climate policy. A decline in fossil gas usage that aligns with Australia’s climate targets must be supported, according to Science-Based Policy that meets the IPCC’s recommendations for global gas use in 1.5°C decarbonisation pathways. The report also highlights the need for transparent engagement in the consultation by entities from other sectors of the economy, such as financials, consumer staples, and transportation companies, to provide a counterweight to the fossil fuel advocacy dominating the debate.
