Australians want industry, and they’d like it green. Steel is the place to start
Australia has an historic opportunity to build a new, export-focused manufacturing sector based on renewable energy. As a bonus, it could enable a less politically fraught conversation about climate change. Global action on climate change is in Australia’s national interest. The changing climate is already reducing profits for Australian farmers. Tens of thousands of jobs depend on the again-bleached Great Barrier Reef. But for too long, political leaders have struggled to balance the national interest with the legitimate concerns of Australians who live and work in regions that host coal mining and other carbon-intensive industries – most notably central Queensland and the Hunter Valley in NSW. This climate conundrum has greatly complicated the national debate about climate change: neither commitments to a “just transition” to a low-emissions future, nor promises of coal exports in perpetuity, have proven convincing, leaving regional jobs in the lurch. Australians want industry In the 2019 federal election, voters in these carbon regions, perhaps fearing for their livelihoods, seemingly rejected Labor’s more ambitious climate policies. But with 85% of our black coal exported each year, decisions made in Beijing and New Delhi matter more to these communities than decisions made in Canberra. Australia needs a credible plan to replace carbon jobs as the world decarbonises, and ideally the new jobs will offer similar salaries, need similar skills, and be located in similar places. This is the key to cracking the climate conundrum: a plan based on sound economics that can offer hope to communities that currently depend on carbon-intensive activities. A new Grattan Institute report, Start with steel, finds that manufacturing green steel for export is the largest job opportunity for these regions of Australia. We can start with steel Green steel can be made by using renewable energy to produce hydrogen, and then using that hydrogen in place of metallurgical coal in the steelmaking process. The […]