The government has unveiled its strategy to make Australia into an “energy superpower”, including goals to increase energy productivity, ramp up gas production and stabilise electricity prices.



The energy green paper states that the repeal of the carbon and mining taxes have improved Australia as an investment destination but more needed to be done, such as improving worker productivity and speeding up the extraction and export of gas and uranium supplies.

Ian Macfarlane, the industry minister, said the plan builds on one of Australia’s “areas of competitive strength.

“Australia has an abundance of energy resources and energy assets,” he said. “We are well regarded internationally for our diverse range of energy sources and we are supplying increasing volumes of energy commodities to energy-hungry nations in the Asian region.

“We can’t afford to become complacent – Australia must also be the world’s best in how we access and utilise our energy resources.”

But environmental groups have criticised the plan, claiming it focuses on exploiting fossil fuels while neglecting renewable energy sources.

“This paper positions Australia as little more than a quarry, with its strong emphasis on energy exports – from dirty coal to dangerous uranium,” said Victoria McKenzie-McHarg, climate change program manager at Australian Conservation Foundation

“The paper presents the wrong answers to the wrong questions. The government should be asking what Australia’s energy system should look like in 10, 20 and 30 years’ time, then acting with the rest of the world to cut pollution and invest in clean energy.”

The Climate Institute said it welcomed the green paper’s focus on energy productivity, which includes energy and vehicle efficiency.

“On the downside, the energy green paper notes the transformation under way in global energy markets as countries make increasing efforts to reduce their emissions, but steps back from positioning Australia to deal with international shifts to clean energy and carbon constraints,” said Erwin Jackson, deputy chief executive of the Climate Institute.

Jackson added that the green paper failed to address the issue of subsidies paid to fossil fuel generators. Climate Institute analysis, released on Tuesday, found that carbon-intensive energy was subsidised to the tune of $14 billion to $39 billion a year in Australia.

Business groups have reacted more positively to the green paper, with the Business Council of Australia pointing out that energy accounts for 20% of Australia’s exports and employs more than 125,000 people.

“We have had years of missteps on energy policy which are driving up electricity prices,” said Jennifer Westacott, chief executive of the BCA.

“There is confusion between energy and climate policy, and inaction and a lack of political leadership in bringing on more gas supplies, particularly on the east coast.”

“We need a complete rethink of planning and approval processes which are imposing huge costs and delays in delivering major critical new energy projects.”

The green paper comes as the United Nations warned that coal, which makes up more than three-quarters of Australia’s energy supply, had no future if climate change is to be seriously addressed.

Domestically, the Australian government faces continued dissent over a review that recommended that the renewable energy target should either be suspended or shut down entirely.

Clean energy groups have organised a day of protest for Friday in each of Australia’s capital cities, involving more than 1,000 renewable energy companies, that will pressure ministers to retain the RET as it is.

The renewables sector has warned that $15 billion in investment and more than 20,000 jobs will be put at risk if the RET is wound back.