CIAB Market & Policy developments 2005/06 - IEA

year reduction in emission intensity over the period 2006 -15, and 2% per year
thereafter. The policy applied to all enterprises producing more than 100,000 tonnes/year
of CO 2 emissions; and this includes oil sands producers.
204. Canada is looking hard at CCS; the Genessee Phase 3 is on budget and schedule and
Luscar and Sherritt are partners in a coal gasification project. New export coal mines
being developed and the future looks bright for coal.
Australia
205. Escalating public concern about the risk of climate change, fuelled by persistent severe
drought in much of the country, has focussed attention in Australia on coal use as a
major contributor to greenhouse emissions and on the coal industry as a mainstay of the
national economy.
206. Some prominent commentators and minor party politicians have questioned the coal
industry’s social licence to operate, and called for a quick and complete phasing out of
coal production and coal-based power generation in the country in favour of lower
carbon fossil and renewable energy resources. There also have been a number of high
profile procedural challenges to the granting of permits to new coal mining operations on
the grounds that project assessment have not adequately accommodated climate
change impacts and/or should result in permit refusal.
207. However, as yet, such views appear to represent the extreme minority. Within the two
major political parties – the Liberal/National Party Coalition and the Australian Labour
Party – it is well appreciated that such an approach is unfeasible and undesirable. At
both national and state (provincial) levels, each party espouses the need to find solutions
to the energy/climate change dilemma that minimise the impact on economic growth and
preserve the value of Australia’s natural resource endowments, including coal.
208. Accordingly, current and prospective governments in Australia accept that coal should
continue to be an important part of the country’s energy mix for the foreseeable future,
and that Australian coal production and exports will grow in response to increasing
international demand.
209. It is also generally accepted, however, that fundamental changes in coal’s greenhouse
impacts are required and, to this end, low emissions coal technology is being widely
promoted by governments as a key element of Australia’s climate change response. The
Australian Government along with the State Governments of NSW, Victoria and
Queensland are proactively supporting the coal industry and the RD&D effort on clean
coal technology development. Together, they are contributing some $700 million for
clean coal technology development projects. During 2006-07, AU$275 million was
granted to four clean coal projects under the Federal Government’s Low Emissions
Technology Demonstration Fund 11 , and grants for these and complementary projects
were made in the states of Queensland, New South Wales and Victoria.
210. Additional government funds are being directed to other low emission technology
developments, principally solar and other renewables. The Australian Government has
established a clean energy target. By 2020, 15% of Australia's energy is targeted to
come from clean sources such as wind, solar and clean coal.
11 CS Energy – Callide A Oxy-fuel Demonstration (AU$50M); International Power – Hazelwood 2030 A Clean Coal
Future ($50M); HRL – Loy Yang IDGCC ($100M); Fairview Power – Zero Carbon from Coal Seams ($75M).
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