Albanese says we can’t replace steelmaking coal. But we already have green alternatives



Shutterstock

Dominique Hes, University of Melbourne

Despite a wealth of evidence to the contrary, some still propagate the myth that the world will need Australian coal for decades to come. Last weekend Opposition Leader Anthony Albanese joined in, saying thermal and metallurgical coal mining and exports would continue after 2050, even with a net zero emissions target.

Metallurgical coal (or “coking coal”) is mined to produce the carbon used in steelmaking, while thermal coal is used to make steam that generates electricity.

Albanese argues there’s no replacement for metallurgical coal, but this is not the case. The assertion stems from a fundamental misunderstanding of modern steelmaking, and places Australian manufacturers at risk of missing out on massive opportunities in the global shift to a low-carbon economy.

Just as thermal coal can be replaced with clean energy from renewables, we can use low-emissions steel manufacturing to phase out metallurgical coal.




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The problem with steel

Steel is the second-most polluting industrial material in the world after cement, causing 7-9% of global emissions.

Australia manufactures a relatively small amount of steel – 5.3 million tonnes, or 0.3% of world output. Yet, we’re one of the biggest exporters of raw materials for steel production.

There is potential to not only strengthen Australia’s steel manufacturing industry, but also to grow it using the ore (rock containing metals like iron) we currently export and our extensive renewable energy sources.

Doing so would work to our manufacturing strengths, history, abundant resources, and would cater to the future low-carbon market that will still require steel.

There are a few ways we can do this.

Recovering waste

Seventy-two per cent of the world’s virgin steel (steel made from ore, not from recycled material) is created from a high emissions manufacturing process – via the integrated steel-making route. This involves a blast furnace and a basic oxygen furnace, using coal, coke, iron ore and gas.

We can replace the coal and coke with rubber tyres that would otherwise end up in landfill, as shown by University of NSW’s Professor Veena Sahajwalla, who dubbed this process “green steel”.




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Right now we can also boost the recovery of steel from landfills in greater percentages. According to a 2018 national waste report, Australia generated an estimated 67 million tonnes of waste in 2016-17.

Steel makes up 2.5% of this. That’s more than 1.5 million tonnes, enough to build 150,000 buses.

‘Direct reduction’ from renewable hydrogen

But the best way to reduce emissions in steel manufacturing is to shift to “direct reduction”. This process produces more than 60 million tonnes of primary steel each year.

And almost 50 plants around Australia already make steel this way. It results in 40% lower greenhouse gas emissions, while supporting a viable and thriving manufacturing industry, which uses our own raw materials rather than exporting them.




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Here’s how it works. Direct reduction removes the oxygen in ore, which produces metallic iron. The chemical reaction that drives this process uses carbon monoxide and hydrogen, sourced from greenhouse gases – reformed natural gas, syngas or coal.

But there’s no reason these fossil fuels can’t be entirely replaced with renewable hydrogen in the near future.

We’ve seen this from two leading direct-reduction technologies, called Midrex and Energiron. Both use fossil fuels, but also with a high proportion of hydrogen. In fact, Energiron facilities can already use up to 70% hydrogen, and they’ve also trialled 100% hydrogen.

The source of this hydrogen is critical, it can be made from fossil fuels, or it can be made using renewable energy.




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At least five companies in Europe are also working on producing low emissions steel. What’s more, three companies (SSAB, LKAB and Vattenfall) are collaborating to progress the technology, creating the “world’s first fossil-free steel-making technology, with virtually no carbon footprint” – called the “HYBRIT system”.

In fact, SSAB recently announced they’re bringing their plans forward to will produce fossil-free steel by 2026.

A new Aussie industry

The key message is this: it is possible to create low-emissions steel, without metallurgical coal. And it is already happening.

With the support of industry and government, non-metallurgical, low-emissions steel could provide an opportunity to create jobs, develop a decarbonised industry and extend the steel market’s contribution to Australia’s economy.

Not to mention what products we can produce from the steel – adding value in many more ways than just exporting ore – and taking advantage of an increasing consumer demand for low carbon products. This is especially relevant for communities transitioning away from fossil fuels.

There’s not much stopping low-emissions steel from forming a core new Australian industry. Australia must address the costs involved in transitioning the infrastructure, to upgrade plants and processes.

But it needs to start with working from facts – and effective government support and vision.




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The Conversation


Dominique Hes, Senior Lecturer in Sustainable Architecture, University of Melbourne

This article is republished from The Conversation under a Creative Commons license. Read the original article.

BlackRock is the canary in the coalmine. Its decision to dump coal signals what’s next


John Quiggin, The University of Queensland

The announcement by BlackRock, the world’s largest fund manager, that it will dump more than half a billion dollars in thermal coal shares from all of its actively managed portfolios, might not seem like big news.

Announcements of this kind have come out steadily over the past couple of years.

Virtually all the major Australian and European banks and insurers, and many other global institutions, have already announced such policies.

According to the Unfriend Coal Campaign, insurance companies have stopped covering roughly US$8.9 trillion of coal investments – more than one-third (37%) of the coal industry’s global assets, and stopped offering reinsurance to 46% of them.

Blackrock matters because it is big

The announcement matters, in part because of Blackrock’s sheer size.

It is the world’s largest investor, with a total of $US7 trillion in funds under its control. Its announcement it will “put climate change at the center of its investment strategy” raises questions about the soundness of smaller financial institutions that remain committed to coal and to a carbon-based economy.


Exract from BlackRock’s letter to clients, January 14, 2020

Blackrock is also important because its primary business is index funds, that are meant to replicate entire markets.

So far these funds are not affected by the divestment policy. BlackRock’s iShares United States S&P 500 Index fund, for instance, has nearly US$23 billion in assets, including as much as US$1 billion in energy investments.

But the contradiction between the company’s new activist stance and the passive replication of an energy-heavy index such as Australia’s is obvious. The pressure to find a solution will grow.

In time, the entire share market will be affected

One solution might be for large mining companies such as BHP to dump their coal assets in order to remain part of both Blackrock’s actively managed (stock picking) and passively managed (all stocks) portfolios.

Another might be the development of index funds from which firms reliant on fossil fuels are excluded. It is even possible that the compilers of stock market indexes will themselves exclude these firms.

The announcement has big implications for the Australian government.




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Blackrock chief executive Laurence Fink noted that climate change has become the top issue raised by clients. He said it would soon affect all all investments – everything from municipal bonds to mortgages for homes.

Once investors start assessing government bonds in terms of climate change, Australia’s government will be in serious trouble.

Australia’s AAA rating will be at risk

The bushfire catastrophe and the government’s inadequate response have shown the world Australia is both among the countries most exposed to climate catastrophe and one of the worst in terms of contributions to solutions.

Once bond investors follow the lead of Blackrock and other financial institutions, divestment of Australian government bonds will follow.

This process has already started, with the decision of Sweden’s central bank to unload its holdings of Australian government bonds.

Taken in isolation, Sweden’s move had virtually no effect on Australia’s bond prices and yields. But the most striking feature of the divestment movement so far is the speed with which it has grown from symbolic gestures to a severe constraint on funding for the firms it touches.




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The fact that the Adani corporation was unable to find a single bank willing to fund its Carmichael mine is an indication of the pressure that will come to bear.

The effects might be felt before large-scale divestment takes place. Ratings agencies such as Moody’s and Standard and Poors are supposed to anticipate risks to bondholders before they materialise.

It’ll make inaction expensive

Once there is a serious threat of large-scale divestment in Australian bonds, the agencies will be obliged to take this into account in setting Ausralia’s credit rating. The much-prized AAA rating is likely to be an early casualty.

That would mean higher interest rates for Australian government bonds which would flow through the entire economy, including the home mortgage rates mentioned in the Blackrock statement.

The government’s case for doing nothing about climate change (other than cashing in on past efforts) has been premised on the “economy-wrecking” costs of serious action.

But as investments associated with coal are increasingly seen as toxic, we run an increasing risk that inaction will cause greater damage.The Conversation

John Quiggin, Professor, School of Economics, The University of Queensland

This article is republished from The Conversation under a Creative Commons license. Read the original article.

New report shows the world is awash with fossil fuels. It’s time to cut off supply



Australia’s coal production is expected to jump by 34% to 2030, undercutting our climate efforts.
Nikki Short/AAP

Peter Christoff, University of Melbourne

A new United Nations report shows the world’s major fossil fuel producing countries, including Australia, plan to dig up far more coal, oil and gas than can be burned if the world is to prevent serious harm from climate change.

The report found fossil fuel production in 2030 is on track to be 50% more than is consistent with the 2℃ warming limit agreed under the Paris climate agreement. Production is set to be 120% more than is consistent with holding warming to 1.5℃ – the ambitious end of the Paris goals.

Australia is strongly implicated in these findings. In the same decade we are supposed to be cutting emissions under the Paris goals, our coal production is set to increase by 34%. This trend is undercutting our success in renewables deployment and mitigation elsewhere.


productiongap.org

Mind the production gap

The United Nations Environment Program’s Production Gap report, to which I contributed, is the first to assess whether current and projected fossil fuel extraction is consistent with meeting the Paris goals.

It reviewed seven top fossil fuel producers (China, the United States, Russia, India, Australia, Indonesia, and Canada) and three significant producers with strong climate ambitions (Germany, Norway, and the UK).




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The production gap is largest for coal, of which Australia is the world’s biggest exporter. By 2030, countries plan to produce 150% more coal than is consistent with a 2℃ pathway, and 280% more than is consistent with a 1.5℃ pathway.

The gap is also substantial for oil and gas. Countries are projected to produce 43% more oil and 47% more gas by 2040 than is consistent with a 2℃ pathway.


productiongap.org

Keeping bad company

Nine countries, including Australia, are responsible for more than two-thirds of fossil fuel carbon emissions – a calculation based on how much fuel nations extract, regardless of where it is burned.

China is the world’s largest coal producer, accounting for nearly half of global production in 2017. The US produces more oil and gas than any other country and is the second-largest producer of coal.

Australia is the sixth-largest extractor of fossil fuels , the world’s leading exporter of coal, and the second-largest exporter of liquefied natural gas.




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Prospects for improvement are poor. As countries continue to invest in fossil fuel infrastructure, this “locks in” future coal, oil and gas use.

US oil and gas production are each projected to increase by 30% to 2030, as is Canada’s oil production.

Australia’s coal production is projected to jump by 34%, the report says. Proposed large coal mines and ports, if completed, would represent one of the world’s largest fossil fuel expansions – around 300 megatonnes of extra coal capacity each year.


productiongap.org

The expansion is underpinned by a combination of ambitious national plans, government subsidies to producers and other public finance.

In Australia, tax-based fossil fuel subsidies total more than A$12 billion each year. Governments also encourage coal production by fast-tracking approvals, constructing roads and reducing royalty requirements, such as for Adani’s recently approved Carmichael coal mine in the Galilee Basin.

Ongoing global production loads the energy market with cheap fossil fuels – often artificially cheapened by government subsidies. This greatly slows the transition to renewables by distorting markets, locking in investment and deepening community dependency on related employment.

In Australia, this policy failure is driven by deliberate political avoidance of our national responsibilities for the harm caused by our exports. There are good grounds for arguing this breaches our moral and legal obligations under the United Nations climate treaty.

Protestors locked themselves to heavy machinery to protest the Adani coal mine in central Queensland.
Frontline Action on Coal

Cutting off supply

So what to do about it? As our report states, governments frequently recognise that simultaneously tackling supply and demand for a product is the best way to limit its use.

For decades, efforts to reduce greenhouse gas emissions have focused almost solely on decreasing demand for fossil fuels, and their consumption – through energy efficiency, deployment of renewable technologies and carbon pricing – rather than slowing supply.

While the emphasis on demand is important, policies and actions to reduce fossil fuels use have not been sufficient.

It is now essential we address supply, by introducing measures to avoid carbon lock-in, limit financial risks to lenders and governments, promote policy coherence and end government dependency on fossil fuel-related revenues.

Policy options include ending fossil fuel subsidies and taxing production and export. Government can use regulation to limit extraction and set goals to wind it down, while offering support for workers and communities in the transition.




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Several governments have already restricted fossil fuel production. France, Denmark and New Zealand have partially or totally banned or suspended oil and gas exploration and extraction, and Germany and Spain are phasing out coal mining.

Australia is clearly a major contributor in the world’s fossil fuel supply problem. We must urgently set targets, and take actions, that align our future fossil fuel production with global climate goals.The Conversation

Peter Christoff, Associate Professor, School of Geography, University of Melbourne

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Coal miners and urban greenies have one thing in common, and Labor must use it



Coal stockpiled before being loaded on to ships at a terminal in Gladstone. researchers say Labor should not “cozy up” to the coal industry.
Dave Hunt/AAP

Fabio Mattioli, University of Melbourne and Kari Dahlgren, London School of Economics and Political Science

Months after Labor’s shock election loss, it is still pondering how the Liberals metamorphosed from party of the bosses to party of the workers – one that stole an election win from under them.

At the May 18 federal election, several working class seats in Queensland did not fall into Labor’s hands as expected, and the party narrowly retained others in New South Wales with large negative swings.

They include the coal seat of Hunter, north of Sydney, where Labor’s resources spokesman Joel Fitzgibbon suffered a 10% swing against him. He this week claimed constituents were scared off by Labor’s ambitious emissions reduction goal – which necessarily entails curbing the burning of fossil fuels such as coal.

Fitzgibbon called on Labor to adopt the government’s weak emissions targets – a call that drew ire from some of his colleagues. But there is no doubt that since Labor’s election loss, the party has set about proving itself as pro-coal.




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Days after the election, the controversial Adani mine received long-outstanding approvals from the Queensland Labor government, which also adopted a strong pro-coal message at its party conference. Federal Labor MPs were reportedly tripping over themselves to join the newly formed group Parliamentary Friends of Coal Exports.

But cosying up to coal is not the way forward for Labor. Instead, it must find the common ground that unites workers in the cities and the regions – job insecurity – and build a consensus for climate action on that basis.

Now-Labor leader Anthony Albanese in Brisbane in 2017, followed by anti-Adani protesters.
Darren England/AAP

Neo-liberalism has gutted coal communities

The rise in populist votes in Australia is to an extent part of a larger global movement spanning the UK’s Brexit vote, the election of US President Donald Trump, and the rise of far-right agitators across Europe. In Australia, as abroad, this process is the outcome of almost 50 years of neo-liberalism.

Large companies have departed from industrial heartlands, relocating abroad without implementing the same level of social protection and welfare. Blue-collar jobs have been supplanted by white- or pink-collar positions, offering careers in the immaterial world of finance and the service economy.

For some, this shift is not a bad thing, as it opens opportunities in less gruelling urban service jobs. But for working-class and coal communities, it means a loss of their way of life.

In their heyday, industrial factories were holistic experiences that synchronised workers’ lives to the rhythms of production. In coal communities, intergenerational attachments grew to the towns that were constructed to house mining workforces. So pervasive are the emotional attachments to mining that the prospect of moving into a different industry is not appealing to most. Not everyone wants to be a consultant, a service worker or a financial trader.

Office workers are seen on a lunch break at Martin Place in Sydney. Casualisation of the workforce is not confined to the mining industry.
AAP/Mich Tsikas

Labor is between a rock (of coal) and a hard place

This global trend pulls Labor in two directions. Urban workers in the services, finance or creative industries perceive climate change as the greatest threat to their futures and demand a transition from coal to renewables. Labor’s traditional base, however, is mining communities who feel threatened by the policies environmentalists are calling for.

Is there a way to navigate these apparently conflicting voter needs? Yes. But not by embracing coal and hoping city voters won’t notice. Instead, Labor must build a coalition across both coal communities and its urban base, recognising that the political issues around coal in Australia are about more than climate change.

The biggest threat to existing coal jobs is not climate policy, but the increased casualisation of the mining workforce. Coal miners are significant victims of what unions such as the the Construction, Forestry, Maritime, Mining and Energy Union has termed the “permanent-casual rort”.




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Coal workers are increasingly employed on casual contracts through labour hire companies. They work the same shifts and do the same jobs for years, but are not entitled to paid holidays or sick leave and are liable to be sacked at any time.

Insecure jobs also mean casuals are less likely to raise safety concerns. In the past year there have been six Queensland mining fatalities, the highest rate in 20 years.

This shift is not confined to mining and industrial manufacturing. Fewer than half of working Australians have full-time permanent jobs. Employers such as rideshare service Uber and others in the gig economy offer flexibility in exchange for exploitation, insecurity, and a lack of workplace protections.

Like coal miners, people working in the immaterial economy – many of whom are concerned about climate change – also face increasingly insecure workplaces.
Yet few on the side of climate action see these commonalities, or think of coal communities as potential allies.

A CFMMEU video arguing against incensed workforce casualistaion.

Labor should broker a new kind of coalition

For Labor, a pro-coal message designed to win back coal miners will only alienate its urban base. Instead of flipping scripts between electorates, the party should build a broad coalition on the common job insecurity faced by both coal miners and urban, post-industrial workers.

This would create spaces of solidarity between environmentalists and miners. It would refocus the discussion from how environmental policy puts jobs at risk to how it can address workforce insecurity across industries.




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Labor’s existing “Just Transition” policy goes part-way there. But it allocated just $15 million over four years to administer redundancies, and fund worker training and economic diversification. Judging by the election result, coal communities were not convinced by it.

Labor should look to the US, where the proposed Green New Deal promises to cut climate pollution while creating millions of safe, stable jobs, whether in weather-proofing homes, expanding railways or making wind turbines. It is underpinned by the notion that structural reform to address inequality is central to climate policy.

Coal miners are not ignorant of the changing economics of their industry. But Labor will gain ground only if it devises a climate policy that is environmentally sound and offers protection against precarious employment.The Conversation

Fabio Mattioli, Lecturer in Social Anthropology, University of Melbourne and Kari Dahlgren, PhD in Anthropology, London School of Economics and Political Science

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Adani beware: coal is on the road to becoming completely uninsurable



Insurers have to protect themselves against foreseeable risks. For insurers of fossil fuel projects, those risks are growing.
Shutterstock

John Quiggin, The University of Queensland

The announcement by Suncorp that it will no longer insure new thermal coal projects, along with a similar announcement by QBE Insurance a few months earlier, brings Australia into line with Europe where most major insurers have broken with coal.

US firms have been a little slower to move, but Chubb announced a divestment policy in July, and Liberty has confirmed it will not insure Australia’s Adani project.

Other big firms such as America’s AIG are coming under increasing pressure.

Even more than divestment of coal shares by banks and managed funds, the withdrawal of insurance has the potential to make coal mining and coal-fired power generation businesses unsustainable.

As the chairman and founder of Adani Group, Gautam Adani, has shown in Queensland’s Galilee Basin, a sufficiently rich developer can use its own resources to finance a coal mine that banks won’t touch.




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But without insurance, mines can’t operate.

(Adani claims to have insurers for the Carmichael project, but has declined to reveal their names.)

Why are insurers abandoning coal?

By the nature of their business, insurers cannot afford to indulge the denialist fantasies still popular in some sectors of industry. Damage caused by climate disasters is one of their biggest expenses, and insurers are fully aware that that damage is set to rise over time.

Even so, a sufficiently hard-headed company might choose to work both sides of the street – continuing to do business with fossil fuel companies, while also writing more expensive insurance against climate damage.

The bigger problem insurers face is the risk of litigation holding fossil fuel companies responsible for climate-related damage. For the moment, this is a potential rather than an immediate risk.

As US insurer AIG, yet to announce a divestment policy, has observed:

Based on our monitoring, while the overall volume of litigation activity has increased, past litigation seems to have largely been unsuccessful on numerous grounds including difficulties in determining and attributing fault and liability to a particular company, and the judiciary’s deference to the political branches of government on questions relating to climate change.

Recent development suggest these difficulties will be overcome.

It’s becoming easier to finger climate culprits…

Until recently, the most immediate problem facing potential litigants has been demonstrating that an event was the result of climate change as opposed to something else, such as random fluctuations in climatic conditions.

Scientific progress on this “extreme event attribution problem” has been rapid.

It is now possible to say with confidence that climate change is causing an increase in both the frequency and intensity of extreme weather and weather-related events such as extreme heatwaves, drought, heavy rains, tropical storms and bushfires.

The Bulletin of the American Meteorological Society has highlighted three extremes in 2016 that would not have occurred if not for the added influence of climate change:

  • a persistent area of unusually warm water that lingered off the Alaskan coast, causing reduced marine productivity and other ecological disruptions

  • the extreme heatwave that happened in Asia, killing hundreds and destroying crops

  • the overall global atmospheric heat record set that year.

…and to allocate liability

The second line of defence against climate litigation that has held so far is the difficulty of imputing damage to the companies that burn fossil fuels.

While it is true that all weather events have multiple causes, in many circumstances climate change caused by the burning of fossil fuels has been a necessary condition for those events to take place.

Courts routinely use arguments about necessary conditions to determine liability.

For example, a spark from a power line might cause a bushfire on a hot, dry, windy day, but would be harmless on a wet cold day. That can be enough to establish liability on the part of the company that operates the power line.

These issues are playing out in California, where devastating fires in 2017 caused damage estimated at US$30 billion and drove the biggest of the power companies, PG&E, into bankruptcy.

As a result there has been pressure to loosen liability laws, leaving the cost of future disasters to be borne by Californians in general, and their insurers.

Lawyers will be looking for someone to sue.

Adani is a convenient target

The question facing potential litigants is whether any single company contributes enough to climate change to make it meaningfully liable for particular disaster.

Adani’s Carmichael mine provides a convenient example.

Adani says the 10 million tonnes of coal it plans to mine will produce only 240,000 tonnes of carbon dioxide, but this is semantic trickery. The firm is referring only to so-called “scope 2” emissions associated with the mining process itself.

When the coal is burned it might produce an extra 30 million tonnes of carbon dioxide, amounting to about 0.05% of global emissions.

A 0.1% share of the damage associated with the California fires is US$15 million, enough to be worth suing for. Other similarly sized mines will face similar potential liabilities.

Once a precedent is established, any company in the business of producing or burning fossil fuels on a large scale can expect to be named in a regular stream of suits seeking substantial damages.

When governments are successfully sued…

The remaining line of defence for companies responsible for emissions is the history of courts in attributing climate change to decisions by governments rather than corporations.

In the Netherlands, a citizen action group called Urgenda has won a case against the Dutch government arguing it has breached its legal duty of care by not taking appropriate steps to significantly restrain greenhouse gas emissions and prevent damage from climate change.

The government is appealing, but it has lost every legal round so far. Sooner or later, this kind of litigation will be successful. Then, governments will look for another party that can be sued instead of them.

…they’ll look for someone else to blame

Insurance companies are an easy target with deep pockets. Despite its hopeful talk quoted above, AIG would find it very difficult to avoid paying up if Californian courts found the firms it insured liable for their contributions to a climate-related wildfires or floods.

This is not a message coal-friendly governments in the US or Australia want to hear.

But the decision of Suncorp to dump coal, just a couple of months after the re-election of the Morrison government, makes it clear that businesses with a time horizon measured in decades cannot afford wishful thinking. They need to protect themselves against what they can see coming.




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The Conversation


John Quiggin, Professor, School of Economics, The University of Queensland

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Pacific Island nations will no longer stand for Australia’s inaction on climate change


Michael O’Keefe, La Trobe University

The Pacific Islands Forum meeting in Tuvalu this week has ended in open division over climate change. Australia ensured its official communique watered down commitments to respond to climate change, gaining a hollow victory.

Traditionally, communiques capture the consensus reached at the meeting. In this case, the division on display between Australia and the Pacific meant the only commitment is to commission yet another report into what action needs to be taken.

The cost of Australia’s victory is likely to be great, as it questions the sincerity of Prime Minister Scott Morrison’s commitment to “step up” engagement in the Pacific.




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Australia’s stance on climate change has become untenable in the Pacific. The inability to meet Pacific Island expectations will erode Australia’s influence and leadership credentials in the region, and provide opportunities for other countries to grow influence in the region.

An unprecedented show of dissent

When Morrison arrived in Tuvalu, he was met with an uncompromising mood. In fact, the text of an official communique was only finished after 12 hours of pointed negotiations.

While the “need for urgent, immediate actions on the threats and challenges of climate change”, is acknowledged, the Pacific was looking for action, not words.

What’s more, the document reaffirmed that “strong political leadership to advance climate change action” was needed, but leadership from Australia was sorely missing. It led Tuvaluan Prime Minister Enele Sopoaga to note:

I think we can say we should’ve done more work for our people.

Presumably, he would have hoped Australia could be convinced to take more climate action.

In an unprecedented show of dissent, smaller Pacific Island countries produced the alternative Kainaki II Declaration. It captures the mood of the Pacific in relation to the existential threat posed by climate change, and the need to act decisively now to ensure their survival.

And it details the commitments needed to effectively address the threat of climate change. It’s clear nothing short of transformational change is needed to ensure their survival, and there is rising frustration in Australia’s repeated delays to take effective action.

Australia hasn’t endorsed the alternative declaration and Canberra has signalled once and for all that compromise on climate change is not possible. This is not what Pacific leaders hoped for and will come at a diplomatic cost to Australia.




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Canberra can’t buy off the Pacific

Conflict had already begun brewing in the lead up to the Pacific Islands Forum. The Pacific Islands Development Forum – the brainchild of the Fijian government, which sought a forum to engage with Pacific Island Nations without the influence of Australia and New Zealand – released the the Nadi Bay Declaration in July this year.

This declaration called on coal producing countries like Australia to cease all production within a decade.

But it’s clear Canberra believes compromise of this sort on climate change would undermine Australia’s economic growth and this is the key stumbling block to Australia answering its Pacific critics with action.

As Sopoaga said to Morrison:

You are concerned about saving your economy in Australia […] I am concerned about saving my people in Tuvalu.

And a day before the meeting, Canberra announced half a billion dollars to tackle climate change in the region. But it received a lukewarm reception from the Pacific.

The message is clear: Canberra cannot buy off the Pacific. In part, this is because Pacific Island countries have new options, especially from China, which has offered Pacific island countries concessional loans.




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China is becoming an attractive alternate partner

As tension built at the Pacific Island Forum meeting, New Zealand Foreign Minister Winston Peters argued there was a double standard with respect to the treatment of China on climate change.

China is the world’s largest emitter of climate change gasses, but if there is a double standard it’s of Australia’s making.

Australia purports to be part of the Pacific family that can speak and act to protect the interests of Pacific Island countries in the face of China’s “insidious” attempts to gain influence through “debt trap” diplomacy. This is where unsustainable loans are offered with the aim of gaining political advantage.

But countering Chinese influence in the Pacific is Australia’s prime security interest, and is a secondary issue for the Pacific.

But unlike Australia, China has never claimed the moral high ground and provides an attractive alternative partner, so it will likely gain ground in the battle for influence in the Pacific.

For the Pacific Island Forum itself, open dissent is a very un-Pacific outcome. Open dissent highlights the strains in the region’s premier intergovernmental organisation.

Australia and (to a lesser extent) New Zealand’s dominance has often been a source of criticism, but growing confidence among Pacific leaders has changed diplomatic dynamics forever.




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This new pacific diplomacy has led Pacific leaders to more steadfastly identify their security interests. And for them, the need to respond to climate change is non-negotiable.

If winning the geopolitical contest with China in Pacific is Canberra’s priority, then far greater creativity will be needed as meeting the Pacific half way on climate change is a prerequisite for success.The Conversation

Michael O’Keefe, Head of Department, Politics and Philosophy, La Trobe University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Can Scott Morrison deliver on climate change in Tuvalu – or is his Pacific ‘step up’ doomed?



Pacific leaders don’t want to talk about China’s rising influence – they want Scott Morrison to make a firm commitment to cut Australia’s greenhouse gas emissions.
Mick Tsikas/AAP

Tess Newton Cain, The University of Queensland

This week’s Pacific Islands Forum comes at an important time in the overall trajectory of Prime Minister Scott Morrison’s very personal commitment to an Australian “stepping up” in the Pacific.

To paraphrase the PM, you have to show up to step up. And after skipping last year’s Pacific Islands Forum, Morrison has certainly been doing a fair amount of showing up around the region, with visits to Vanuatu and Fiji at the beginning of the year and the Solomon Islands immediately after his election victory.

Add to this his recent hosting of the new PNG prime minister, James Marape, and it is clear there has been significant energy devoted to establishing personal relationships with some of the leaders he will sit down with this week.

An ‘existential threat’ to the region

Regional politics and diplomacy in the Pacific are not for the faint of heart. It’s clear from the tone of recent statements by Foreign Minister Marise Payne and the minister for international development and the Pacific, Alex Hawke, that there is some disquiet ahead of the Tuvalu get-together.

And with good reason. For some time, the leaders of the region have been becoming increasingly vocal about the lack of meaningful action from Canberra when it comes to climate change mitigation.




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Most recently, ten of the Pacifc Islands Development Forum (PIDF) members signed the Nadi Bay Declaration, which advocated a complete move away from coal production and specifically criticised using “Kyoto carryover credits” as a means of achieving Paris targets on reducing emissions.

While this body does not have the regional clout of the Pacific Islands Forum, its membership includes key players, notably Fiji, Tuvalu, and the Republic of the Marshall Islands, whose leaders have all spoken out strongly on the need for stronger action on climate change.

In a speech last month, Fijian Prime Minister Frank Bainimarama urged his fellow Pacific leaders to withstand any attempts to water down commitments on climate challenge in the region and globally.

Bainimarama’s warning: ‘Our region remains on the front line of humanity’s greatest challenges’

Bainimarama is attending this year’s Pacific Islands Forum for the first time since 2007, and has already made his presence felt. Earlier this week, he urged Australia to transition as quickly as possible from coal to renewable energy sources, because the Pacific faces

an existential threat that you don’t face and challenges we expect your governments and people to more fully appreciate.

Losing credibility on its ‘step up’

Given the state of Australia’s domestic politics when it comes to making climate change action more of a priority, it is hard to see how Morrison can deliver what the “Pacific family” is asking for.

The recent announcement of A$500 million to help Pacific nations invest in renewable energy and fund climate resilience programs is sure to be welcomed by Pacific leaders. As is the pledge for A$16m to help tackle marine plastic pollution.

But none of this money is new money – it’s being redirected from the aid budget. And it does not answer the call of Pacific leaders for Australia to do better when it comes to cutting emissions.

An aerial view of Funafuti, the most populous of Tuvalu’s country’s nine atolls.
Mick Tsikas/AAP

Why does this matter? Because it’s becoming increasingly obvious that the inability – or refusal – to be part of the team when it comes to climate change is undermining Australia’s entire “Pacific step-up”.

If Morrison, and the Australian leadership more broadly, want to reassure Pacific leaders that Australia’s increased attention on the region is not just all about trying to counter Chinese influence, this is where the rubber hits the road.

This is not about whether China is doing better when it comes to climate change mitigation than Australia. The Pacific has greater expectations of Australia, not least because Australian leaders have been at pains to tell the region, and the world, that this is where they live – that Pacific islanders are their “family”.

And for Pacific islanders, if you are family, then there are obligations. This week, as has been the case previously, Pacific leaders will make clear that addressing climate change is their top priority, not geopolitical anxieties over China’s increasing role in the region.




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There is little doubt that Australia’s “Pacific step-up” is driven by concerns about the rising influence of China. But Morrison knows better than to voice concerns of that type – at least in public – while in Tuvalu.

Numerous Pacific leaders have made it clear that as far as they are concerned, partnerships with Beijing (for those that have them) provide for greater opportunity and choice.

While they welcome renewed ties with traditional partners like Australia and New Zealand, they maintain a “friends to all and enemies to none” approach to foreign policy. That is unlikely to change any time soon.

Tuvalu’s Prime Minister Enele Sopoaga has warned Australia that its Pacific ‘step up’ could be undermined by a refusal to act on climate change.
Mick Tsikas/AAP

Will Tuvalu prove a turning point?

Tuvalu Prime Minister Enele Sopoaga may well be hoping that when Morrison sees for himself how climate change is affecting his country, he will be so moved personally, he will shift Australia’s stance politically.

Indeed, on arrival in the capital of Funafuti this week, leaders are being met by children sitting in pools of seawater singing a specially written song “Save Tuvalu, Save the World”.

So what can Morrison realistically be expected to achieve during the summit? He will be able to demonstrate Australia’s commitment to other issues that are important to regional security, such as transnational and organised crime and illegal fishing.

He can also hope the personal relationships he has cultivated with Pacific leaders deliver returns by way of compromise around the wording of the final communique, if only to avoid a diplomatic stoush.

But if there is no real commitment to cutting greenhouse gas emissions, he will leave plenty of frustration behind when he returns to Australia.The Conversation

Tess Newton Cain, Adjunct Associate Professor, School of Political Science & International Studies, The University of Queensland

This article is republished from The Conversation under a Creative Commons license. Read the original article.