Albanese win welcomed by miners, but Labor warned to stick to moderate promises
The resources industry warns Labor must keep to its promises for a moderate agenda in government, while welcoming climate policy certainty.
The resources industry has warned Labor must keep to its promises for a moderate agenda in government, as figures including Fortescue Metals chief Andrew Forrest also welcomed expected progress on climate policy.
Senior resources leaders on Sunday said they were looking forward to working with Mr Albanese’s new government, including Rio Tinto Australia boss Kelly Parker, Woodside Petroleum managing director Meg O’Neill, South32 chief executive Graham Kerr, and key lobby groups including the Minerals Council of Australia and the Australian Petroleum Production & Exploration Association.
Mr Albanese had previously said he would turn Australia into a “renewable energy superpower” if elected.
Minerals Council chief executive Tania Constable said the industry had moved more swiftly than the previous government on climate change, with the industry having committed to a net zero by 2050 goal ahead of policymakers.
“From our point of view, the climate wars are finished. It’s now about how we get there, and recognising that it’s not a one size fits all approach,” she said.
Dr Forrest said: “We now hope to see a more forward leaning climate change policy from Australia. We are pushing ahead to turn Australia into a green energy superpower.”
With the Greens and climate-focused independents the clear winners on Saturday, mining billionaire Andrew Forrest – now seeking to transform iron ore giant Fortescue Metals Group into a clean energy major – said Australia’s previous approach to emissions reduction was “embarrassing”.
“For a long time Australia has been a climate laggard. Frankly it has been embarrassing. Australia has the highest per capita coal emissions in the G20 – and in the world,” he said.
But Mr Albanese also faces pressure to stick to Labor’s modest carbon reduction emissions, despite claims from the Greens and so-called Teal independents their success delivers a mandate for stronger action on climate change.
Senior resources industry figures – including Association of Mining and Exploration Companies chief executive Warren Pearce, Incitec Pivot managing director Jeanne Johns, and MCA CEO Tania Constable – called on Labor to make good on promises to protect the competitive position of the Australian sector in international markets.
“We are encouraged the incoming government recognises the unique challenges faced by companies like us operating in hard to abate, high intensity, and trade exposed industries. We welcome guarantees by the incoming government that trade exposed industries will not be economically disadvantaged,” Ms Johns said.
Ms Constable said Labor clearly understood the sector’s contribution to the national economy, and the industry was “well placed” to work with Mr Albanese’s government.
“We are an industry that makes things and produces things and that‘s that can’t be forgotten by the Australian people because we’re going to need more mines, more minerals and metals if we want to have a strong economy and a modern society.”
Meanwhile, Mr Forrest’s comments were echoed by Atlassian billionaire Mike Cannon-Brookes, who used the strong vote for the Greens and Teal Independents to fire another shot in his ongoing war with energy giant AGL, which is seeking to split off its coal-fired generation assets into a separate company – a move Mr Cannon-Brookes opposes.
“This was an election won and lost on climate. Australians want action and are asking for a stronger stance. The AGL board should pay attention to its shareholders and the mood of the country. A demerger plan that is not aligned to Paris targets is not going to fly,” he said.
“Last night‘s vote suggests Australia has its sights set on a brighter future and the opportunities that decarbonisation will bring. AGL should not be left behind.“
Mr Cannon-Brookes is a technology billionaire who launched a takeover bid for AGL earlier this year, with Brookfield. He is also a major investor in the $30bn Sun Cable renewable energy project in the Northern Territory, with Mr Forrest, and has said he will donate and invest in $1.5bn of climate projects by 2030.
Responding to Mr Cannon-Brookes’ comments, AGL boss Graeme Hunt said Labor should ensure it kept energy prices firmly in mind as it turned its election policies into reality.
“Australia’s energy transition needs to be seen in the context of how Australia and the energy system as a whole transitions to net zero, and from there, what the contributions of any individual company should be,” he said.
“AGL shares the ambition for decisive action on climate, while ensuring affordable energy, and looks forward to working with the Albanese government to achieve this.”
On Sunday Labor looked likely to command a majority in its own right in the House of Representatives. But Mr Albanese could still fall short of the 76 seats required, meaning he may need the votes of the Greens or independents for supply and confidence motions.
Senior Labor figures on Sunday insisted that no deals would be done with the crossbench, but Teal independents such as Monique Ryan, Zoe Daniels and Allegra Spender all indicated they would use negotiations to push Labor to commit to a 60 per cent reduction in carbon emissions reductions by 2030, rather than the 43 per cent Labor took to the election.