Sussan Ley and her deputy, Ted O’Brien, made headlines last week by attracting controversy over glamorous photo ops at Parliament House. Their arrival represents a new Coalition focus on energy policy, which has often been overlooked. O’Brien, known as the architect of the Coalition’s nuclear policy, has been at the center of discussions regarding Australia’s energy future. Peter Dutton visits Bluescope Steel in a Hi Vis vest and Blue Hard Hat. He went on to emphasize the vital importance of energy to the manufacturing sector, declaring that “energy is the economy.”
Innes Willox, chief executive of the Australian Industry Group (Ai Group), welcomed Treasurer Jim Chalmers’ pledge that productivity would be a focal point for the Albanese government’s upcoming term. Willox’s comments are timely as the Coalition continues to deal with its own ideological fight over climate policy after suffering a historic election defeat. For energy-intensive manufacturing sectors, there is great uncertainty as we shift towards net zero emissions. This climate emergency has only increased calls for bold, explicit and predictable energy policies.
Coalition’s Energy Policy Under Scrutiny
So it’s not surprising that Sussan Ley has already made her position on energy policy clear, insisting that it should focus on “affordable, reliable, baseload power”. She argued that any discussion on energy must take into account the needs of this critical sector. This critical sector deeply depends on a reliable, 24/7 energy supply. Ley’s comments are amid a larger reshuffling of the Coalition’s strategy while the conversation continues on how to redirect climate policy.
The ongoing internal debate has left room for a wide range of reactions among its members. Andrew Bragg has called for a reevaluation of the net zero target, while Matt Canavan has suggested abandoning it entirely in favor of coal. The two camps’ visions underscore the political tightrope the Coalition must walk to in order to present a cohesive action plan on climate change and new energy production.
Ley also worried that revisiting negotiations over net zero could stifle business investment. She continued, “Business has absolutely locked in net zero for a long time. Companies have already made investment decisions that are focused on reducing emissions to reach net zero by 2050. To open that can of worms now would freeze billions worth of pending investment decisions.”
The Importance of Productivity and Energy Viability
AIE Chief Executive Innes Willox further supported Ley, declaring a lasting certainty in energy policy is what business confidence craves. He further explained that even a minor disruption would have far-reaching consequences for investment determinations in all sectors. Willox remarked, “We have an agreed position that both political sides have settled on for some time, and that’s given business and industry some certainty around investment.”
Importantly, he too was clear that the path to net zero needs a pragmatic plan, with a focus on on-the-ground implementation. We have to get the social licence in place, the approvals, the permitting, and we’ve got to build it. Or else we’re not going to achieve our targets. So in fact, we’re not going to meet a 2030 target, much less a 2035 target or a 2050 target,” Willox said.
Additionally, Willox pointed out that nuclear energy is not a practical short-term answer to Australia’s energy crisis. He explained, “What I kept hearing from the private sector was that in the Australian context, nuclear in the time frame that was being talked about wasn’t going to stack up.”
The Future Direction of Climate Policy
As discussions continue within the Coalition regarding its climate strategy, new Environment Minister Murray Watt is poised to reform environmental approval laws. This decision would help make sustainable projects move through the pipeline faster. There are too many unanswered questions about how these reforms will stitch together to meet industry standards and government goals.
The controversy over net zero policy is indicative of a deeper anxiety over Australia’s energy transition. Ley urged against reopening past agreements, stating, “Oh God no, no, anything but, please … For many in business, there would be a lot of eye-rolling about this.” Dutton’s recent visit to Bluescope Steel illustrates the urgent need for such a robustly designed, specific, and coherent energy policy. He stressed that “energy is the economy.”
