Attempts to shut down Australia’s coal industry for the sake of climate change are premature—according to mining industry representatives—who say Asian nations will simply source coal from other countries, many of which have less stringent environmental regulations.
The warning comes as the International Energy Agency (IEA) revealed global electricity demand—namely from India and China—could rise, and fossil fuels would still be needed to prop up power demands.
Paul Flynn, CEO of Whitehaven Coal, told the Joint Standing Committee on Trade and Investment Growth that Asia was a hotbed of demand for Australian coal and that mining for the resource would continue for decades.
“If Australia were to exit the Asian market for coal, whether as a result of financing issues or not, the strong underlying demand from our customers would be quickly filled by lower-quality Indonesian or Russian coal, and there would be zero gain for Australia’s significant sacrifice,” he told the Committee.
“Therefore, close cooperation between Australia’s financial institutions and our export industries will not only benefit Australia’s economy but will help government, business, and industry to manage the global transition to a lower-emissions world,” he added.
Flynn’s comments were echoed by Tania Constable, CEO of the Minerals Council of Australia, who noted that despite coal consumption dropping in the United States and across Europe, Asia and ASEAN would continue to drive demand.- READ MORE
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