Unions urge split Labor to back gas, coal

Right and left-wing unions team up to urge Labor MPs to support gas and coal amid an internal ALP conflict over energy policy.

AWU national secretary Daniel Walton. Picture: Grant Wells

The nation’s leading right-wing and left-wing unions have teamed up to urge Labor MPs to support gas and coal amid an internal ALP conflict over energy policy, warning that Australia will fail to succeed as a renewable energy superpower “if we de-industrialise today”.

The Australian can reveal AWU national secretary Daniel Walton and CFMEU mining and energy national president Tony Maher held a briefing in Canberra with regional Labor MPs on Tuesday and pushed the party to support the expansion of the gas sector despite the opposition of environmental groups.

The two union leaders also said battery storage was “not close to replacing coal” as a baseload energy source and that reducing coal exports would make it more difficult for other nations to make a sensible transition to cleaner energy sources.

There were about 30 MPs in the meeting including Left faction MPs Tanya Plibersek, Julian Hill, Terri Butler and Pat Conroy.

The divisive issue — which has splintered the Labor caucus and inflamed tensions between Hunter Valley MP Joel Fitzgibbon and the party’s energy spokesman Mark Butler — has brought together the major right-wing and left-wing unions, which have historically been enemies.

The meeting will put pressure on Anthony Albanese to give more support to the gas sector despite Mr Butler pushing for a renewables-focused recovery from COVID-19.

The divisive issue has splintered the Labor caucus and inflamed tensions between Hunter Valley MP Joel Fitzgibbon, pictured, and the party’s energy spokesman Mark Butler. Picture: Milan Scepanovic

In a 15-page briefing document, seen by The Australian, the two union figures warn that Australia will not become a renewable energy “superpower tomorrow if we de-industrialise today”.

“We need to maintain our heavy industrial base today to expand it,” the document says.

“Battery storage is not close to replacing coal. Currently batteries dispatch 0.08 per cent of total electricity generation.

“Hydrogen will not be able to replace firmed generation for several decades.

“Snowy Hydro 2.0 will not be operational by Liddell closure and will not be enough to fill the other coal-power generators coming offline.”

The document, titled “A Sensible Pathway to Net-Zero Emissions”, says gas versus renewables is a “false choice”.

“Gas is not a direct substitute for coal, it only makes sense alongside more renewables,” the document says. “Gas is a must-have for manufacturers. Only 30 per cent of gas demand is for electricity generation, the rest includes feedstock manufacturing which does not emit.”

It also says cutting Australian coal exports “would hurt other countries’ sensible transition”.

“Australian coal exports allow other countries to achieve an orderly transition according to their Paris target commitments,” the document says. The briefing document will be distributed to all Labor MPs on Thursday.

Mr Fitzgibbon is pushing for Labor to go to the election without any medium-term emissions target, while Mr Butler wants the party to have an ambitious 2030 or 2035 target.

Labor sources say there is growing caucus sentiment to support Mr Fitzgibbon’s position.

Mr Albanese on Wednesday indicated Labor would wait until the United Nations climate conference in Glasgow at the end of next year before deciding on a medium-term target.

“You’ve got to know what your starting point is moving forward. And the starting point before the next election will include outcomes at the Glasgow conference,” Mr Albanese said.