Climate change policy and emissions reduction
The Australian oil and gas industry supports a national climate change policy that delivers greenhouse gas emissions reductions at least cost and facilitates broad-based investment decisions consistent with an international price on carbon.
The industry has committed to a set of Climate Change Policy Principles designed to assist policymakers in developing efficient and effective responses to this major global issue. These climate change principles are currently being reviewed by APPEA.
Greater use of Australian natural gas – in the domestic market, and in Asia – can significantly reduce greenhouse gas emissions. Gas has an essential role to play in reducing emissions. In the home, natural gas is a cleaner fuel compared to the National Electricity Market (NEM) average.
Exporting gas as LNG allows Australia’s Asian trading partners to reduce the emissions from their economies. For example, it has been estimated by the Federal Government that Australia’s LNG exports have the potential to save importing countries 152 million tonnes of greenhouse gas emissions per year. This is equivalent to 28 per cent of Australia’s annual emissions and is a major contribution the industry makes to reducing the global impacts of climate change.
While the demand for energy as part of the industrialisation of Asian economies is a key driver, the properties of natural gas as a lower emitting and cleaner burning fuel is also driving much of the international demand for LNG.
Much greater use of Australia’s extensive gas resources will be crucial in meeting the challenge of significantly reducing global greenhouse gas emissions at lowest possible cost whilst enhancing Australia’s economic and export performance.
The industry continues to monitor, report and reduce its own emissions profile and participates in a range of global initiatives to reduce emissions (such as the Oil and Gas Climate Initiative, the World Bank Zero Routine Flaring initiative, the Climate & Clean Air Coalition Oil & Gas Methane Partnership and Methane Guiding Principles).
Industry Action on Emissions Reduction
APPEA recently released a new report called Industry Action on Emissions Reduction, highlighting through a series of case studies the range of the practical actions and initiatives undertaken by the oil and gas industry to reduce its greenhouse gas emissions. These actions encompass the entire oil and gas exploration and production life cycle.
Read the fact sheets on the gas industry’s role in emissions reduction: