Mathias Cormann, the Secretary-General of the OECD, recently emphasized the importance of having an impartial, open dialogue on the role of nuclear power. This is hugely important as Australia determines the shape of its energy future. In an interview with 7.30 on Thursday, Cormann addressed pressing economic crises. He warned against the dangers of out-of-control inflation and reiterated the Australian federal government’s emissions reduction goals.
In July against strong opposition, Cormann was reappointed to a second five-year term. While he flagged growing concerns about the weakness of the Albanese government’s climate policy, including its 43 percent emissions reduction target by 2030. He noted that Australia is “well on track” to meet this goal, having already reduced emissions by 28 percent compared to the baseline year of 2005. He challenged the administration to pursue an even more aggressive target for 2035. This target should be economically responsible and in line with global efforts to combat climate change.
Economic Concerns and Inflation Risks
In his pitching, Cormann expressed concern around inflation staying higher for longer than expected. He stated, “In a general sense, what we would say is that it’s appropriate for monetary and fiscal policy to remain prudent in the current global economic context.” This comment is symptomatic of the growing fears among economists about the state of the global economy. Events over the last month have raised the volume on these fears.
Cormann’s remarks coinciding with the intensifying struggle against inflation across all major countries. He encouraged lawmakers to pay special attention to how they shape management of their fiscal policies with an eye towards maintaining the greatest possible economic opportunity.
“I mean, there is a risk that inflation could remain elevated for longer than previously anticipated.” – Mathias Cormann
The Role of Nuclear Power in Australia’s Energy Future
Interview on Friday, Cormann said Australians need to keep an open mind when it comes to having the conversation about nuclear power. He clarified that he does not see nuclear energy as a partisan issue, stating, “I’m not getting involved in a partisan debate here.” He further emphasized that various governments worldwide, regardless of their political affiliations, are exploring nuclear power as part of their energy strategies.
Cormann acknowledged that the debate about the role of nuclear energy has come to the fore in many discussions around the world. He remarked, “In countries around the world, there are governments of different political persuasions who are pursuing increasing nuclear capacity.” This acknowledgment reflects a growing recognition of nuclear power’s potential to contribute to energy security and reliability amidst a changing climate.
“I don’t think that there’s anything inherently partisan about nuclear energy.” – Mathias Cormann
Australia’s Commitment to Climate Goals
Cormann maintained Australia’s commitment to its climate targets. He further reminded listeners that the country made legally binding commitments to such international agreements in 2016. He stated, “Australia signed on to that commitment back in 2016. We’re part of a global effort to tackle climate change.” This commitment underscores the importance of continued discussions surrounding energy sources that can help meet emissions targets while ensuring economic stability.
The Albanese government is now under intense multi-partisan political pressure for its energy policy. The Coalition, led by figures such as Sussan Ley and David Littleproud, has conducted internal reviews concerning net-zero emissions and nuclear energy. Moreover, Peter Dutton’s signature energy policy in the May election was an expansion of nuclear power alternatives.
Cormann wrapped up by emphasizing the importance of continuous discussion on energy policy and climate goals. He stated, “I don’t think it’s a debate that’s ever closed. I think the debate is always open.” This growl reflects an understandable desire for public policy decisions about energy to be nimble. They need to evolve with the times and new global realities and economic landscapes.
