Is Australia in lead position to combat the clean energy battle?

Team Veye | 22-May-2023 Is Australia in lead position to combat the clean energy battle

As Australia hosts the 2023 Quad Leaders' summit in May 2023, United States President Joe Biden will be visiting Sydney to take part in it. The leaders of the US, Japan, India and Australia will also be the participants.

President Biden at the time of his meeting with Prime Minister Anthony Albanese on MARCH 13, 2023 in San Diego, California, had reaffirmed the strong bilateral relationship between the United States and Australia. Although underscoring their shared commitment to promote regional security through the Australia-United Kingdom-United States (AUKUS) trilateral partnership, both US and Australia also resolved to confront climate change.

The Australian Government is advancing action on climate change and build new clean energy industries by collaborating with international partners. While the partnerships are broadly to strengthen collaboration to tackle the global climate challenge, it is expected to build new clean energy trade opportunities for Australia.

Australia and Germany have associated to progress the development of a global renewable hydrogen industry, as also through the Australia-Germany Hydrogen Accord. The countries are exploring options to smoothen the trade of Australian hydrogen and its derivatives produced from renewable energy sources. 

The partnership with US aims to accelerate the development and deployment of zero emissions technologies, and advance collaboration on critical minerals supply chains, to support energy security, economic growth and decarbonisation goals across both economies. 

Presently, the thrust of the partnerships is primarily focused on developing clean energy solutions using hydrogen because of the key advantages of Hydrogen as a fuel. Australian companies like Pure Hydrogen Corporation Limited are likely to evoke considerable interest as it has a strong focus on developing hydrogen projects, with five hydrogen projects currently under development. PepsiCo is already lined up for a trial program with it to build and deliver the first Hydrogen powered truck.

The Australian government, in its bid to shed its reputation as climate laggard, is planning green financing program in the form of green bonds in 2024. 

While Australia moving to net zero can affect global emissions by just over 1 per cent, its supplying zero-emissions goods, currently being exported in raw form, like iron and aluminium could reduce 7 per cent more. These emissions could be most difficult to reduce in any other country of the world.

Further, Australia comfortably assumes the lead position because of it being richly endowed with renewable energy resources. Power from the best solar and wind resources in most of Europe is almost double as expensive as from the best in Australia. Moreover, even if this were to become cheap, there is nowhere to put hundreds of square kilometres of solar farms, let alone the tens of thousands that are required.

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