Political and corporate defeatism

Even coal company representatives seem to feel obliged to denounce their product, much like terrorised Chinese ‘capitalist roaders’ facing Red Guards and wearing dunces caps. In its Annual Report the coal miner Whitehaven acquiesces in the death of coal, claiming it supports the Paris Agreement’s aims of limiting global temperature rises to well below 2 degrees, the corollary of which is the elimination of coal. Similarly, Yancoal, in its 64-page ESG report, claims to be ‘demonstrating its commitment to renewable energy opportunities’ and support for the Paris Agreement.

New Hope, however simply says, ‘Achievable emissions abatement opportunities with positive value will be the first to be considered for implementation’.

Net Zero CO2 emissions is the clarion call but its costs are colossal. BloombergNEF, in promoting ‘investment opportunities’, estimates that to achieve Net Zero by 2050 Australia will need to spend $413 billion on renewables and their back-up, plus $300 billion on transmission. The existing coal-based supply would cost only $80 billion on plant plus maybe $30 billion on transmission!

Even adding in the coal input and operating costs means the system from which we are being transitioned provides energy with far greater reliability at one-third of the cost of the wind /solar system that our political elites favour.

Government regulations on mining and environment have brought electricity and gas price increases at double that of general inflation. This is notwithstanding Australia having the world’s lowest cost coal and gas resources. And the upward electricity price trajectory continues with a further increase of over 20 per cent in place for next month.

Widespread support for manipulating markets to achieve this dismal picture is testament to Charles Mackay’s recognition, nearly 300 years ago, that popular delusions sometimes replace human rationality. But the higher the delusions fly, the harder they fall.