Gas project model pours cold water on emissions goal
Australia’s third-highest emitter of greenhouse gases is not on track to meet its net-zero emissions target by 2050, according to economic modeling of more than $30 billion of gas projects.
A Deloitte report into proposed drilling by Woodside in the Peeping Basin off the coast of Western Australia claims it would generate $147 billion for the state over the life of the project.
He also notes that on the state’s current trajectory, it won’t reach net-zero emissions by 2050.
The report states that the project, which has passed environmental assessments, will support the country’s transition to renewable energy sources.
However, with or without the project, it is stated that in order for WA to reach its 2050 target, renewable energy and energy storage will need to be used at rates much higher than those experienced in the past.
Australia is committed to legislation to reach net zero by 2050 and the WA government recently said the state was committed to that target.
According to the report, it is stated that the project, which is planned to start production in 2030 and last up to 44 years, will provide more than 56 billion dollars in revenue in taxes, privileges and consumption taxes.
Environmental groups harshly criticized the report, with some saying it failed to paint the full picture of potential impacts.
The report notes that the project’s potential impacts on domestic gas prices, its contributions to decarbonisation outcomes in Asia and broader environmental considerations are beyond the scope of the project.
“This report should be read in conjunction with complementary studies that examine these issues in more depth to provide a more complete understanding of the project’s outcomes,” the report states.
Australian Conservation Foundation chief executive Adam Bandt said people and nature would pay the price if development continued.
“Exported coal and gas are returning to Australia through heatwaves, bushfires, flooding and coral bleaching,” he said.
A report by the Institute of Energy Economics and Finance found that Gözat gas would likely be four times more expensive than existing domestic gas.
Peek fields were also “carbon dioxide intensive” with a higher average concentration than many other gas fields.
WA was behind Queensland and NSW in emissions for 2022/23, according to the latest data.
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