Push against gas to drive up emissions as transition authority unveiled

The nation’s largest airconditioning manufacturer warns the push to switch households off gas will drive up emissions and put more stress on family budgets.

Energy Minister Chris Bowen announcing Australia's Net Zero Authority. Picture: Britta Campion

The nation’s largest airconditioning manufacturer says the push to switch households off gas will ­increase emissions and put more stress on family budgets, as the federal government unveils plans for a new entity to oversee the transition to renewables.

Seeley International managing director Jon Seeley has ­criticised the government’s ­“obsession” with ending the use of gas in homes and businesses, saying “less gas equals more coal” as the electricity grid comes under pressure amid growing demand.

“This consistent push to fully electrify our homes and businesses, despite the enormous cost to families, will put our already fragile energy grid under enormous pressure,” Mr Seeley said.

“You cannot switch five million homes who rely on gas every day onto the electricity grid without there being dire consequences for the stability of the energy grid, and a substantial uptick in emissions.”

Mr Seeley accused Labor and the Greens of peddling an “anti-gas narrative”, arguing the industry could play a vital role in transitioning to renewables as it decarbonised its operations and distribution networks, increasingly blending in zero emissions fuel sources such as biomethane and green hydrogen.

The warning comes as the federal government announced on Friday that it will legislate a “net zero authority” to assist coal-­reliant regional communities transition from high emissions industries, garnering support from industry groups, unions and ­regional communities.

An agency to guide the design of the net zero authority will launch on July 1 and initially be housed in the Department of Prime Minister and Cabinet.

The authority’s three major goals will be to support workers in emissions-intensive sectors to transition to new jobs, co-ordinate programs to attract and take advantage of new clean energy industries across the regions, and assist investors and companies to harness net-zero transformation opportunities.

Speaking from the Hunter Valley on Friday, Energy Minister Chris Bowen said the auth­ority would “demolish obstacles” for workers and communities reliant on emission-heavy industries to transition.

“We know it’s in the nation’s interests for Australian industries in the regions to be investing in decarbonisation and, therefore, it is in the interests of the government to help,” he said.

Australian Council of Trade Unions president Michele O’Neil said the announcement marked an “important victory” for energy workers and the climate.

“Supporting creation of new quality jobs and skills and providing the resources workers and communities need are essential elements of this plan,” she said. “Reaching net zero emissions is a nation-building, history-making, generation-defining project. The creation of this authority will allow Australia to advance that project with confidence, knowing no one will be left behind.”

Australian Manufacturing Workers Union secretary Steve Murphy said the announcement signalled communities such as those in the Hunter and Latrobe valleys could become “global leaders in clean energy manufacturing”.

Australian Energy Council chief executive Sarah McNamara said the transition to renewables posed “significant challenges” to some communities, and without support workers would suffer as power station closures occurred. “Government has a critical role to play in ensuring that communities are not left behind,” she said.

Climate Council chief executive Amanda McKenzie said the announcement, which comes just a week after the Liddell power plant was taken off line, signalled that the nation was shifting ­towards renewable energy.

“Australia’s global allies and trading partners are forging ahead with the transition to net zero and it makes perfect sense for Australia to get in the game,” Ms McKenzie said.

“Taking strong action now is the best way to ensure Australia captures growing markets for clean energy and low emissions products, to power the next era of our national prosperity.”

Isaac Regional Council mayor Anne Baker said the authority would guarantee resource-rich communities like hers were “supported by all levels of government through this transformational change”.