Lexi Webster
Australia has long relied on coal as a key driver of its economy, and it remains the country's second-largest export. In 2021, coal accounted for 64% of energy production and 32% of the Total Energy Supply (TES). While the country has abundant coal resources and strong ongoing demand from Asia, the Australian government's commitment to coal has been criticised for hindering progress on climate action. Despite international pressure to phase out coal, the Australian government has continued to approve new coal mines and provide financial support to the coal industry, even as it cuts spending on renewable energy sources. This has led to Australia being viewed as a bad guy in global climate talks.
| Characteristics | Values |
|---|---|
| Coal's contribution to Australia's economy | Coal is Australia's second-biggest export, totalling A$55bn in 2020. |
| Australia's coal reserves | Australia has the fourth-largest share of coal reserves in the world. |
| Coal's contribution to energy production | In 2021, coal accounted for 64% of energy production and 32% of the Total Energy Supply (TES). |
| Government protection of coal producers | The Australian government has dismantled the emissions trading scheme, approved new mines, provided tax subsidies, and invested in 'clean coal'. |
| Environmental impact | Coal-fired power plants regularly exceed pollution limits, and the government has withdrawn from the UN's Green Climate Fund. |
| Water resource protection | The Australian government uses the 'water trigger' provisions of the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) to protect water resources from coal development. |
| Climate targets | The Australian government passed a Climate Change Bill in 2022, setting targets to cut emissions by 43% by 2030 and reach net zero by 2050. |
| Coal producers in Australia | The largest coal producers in Australia include BHP, Glencore, Yancoal, Peabody, Anglo American, and Whitehaven Coal. |
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What You'll Learn
The Australian government's approval of coal mines
In December 2024, the Australian government approved three major coal mines: Caval Ridge, Boggabri, and Lake Vermont. These mines are projected to produce 350 million tonnes of coal and 936 million tonnes of emissions. This decision was defended by the Environment Minister, Tanya Plibersek, who emphasised the coal's use in steel production. However, critics argued that coal combustion contributes to climate change, regardless of its end use.
The Australian government has also approved coal mine extensions in New South Wales, including Whitehaven's Narrabri Stage 3 Expansion, MACH Energy's Mount Pleasant Optimisation, and Glencore and Yancoal's Ashton-Ravensworth Extension. These projects are expected to produce over a billion tonnes of pollution until 2048, more than double Australia's total annual emissions.
The Commonwealth regulatory regime, through the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) and the Clean Energy Act 2011, plays a crucial role in coal mine approvals. The EPBC Act focuses on protecting matters of national environmental significance, such as water resources and biodiversity. The Australian government's approval process involves assessing the potential environmental impact of proposed coal mines and ensuring compliance with relevant legislation.
While the Australian government has taken steps to regulate and mitigate the environmental impact of coal mines, its continued approval of new projects contradicts its commitment to climate action. Australia's coal industry has a significant impact on the country's economy, with coal exports contributing significantly to its trade. However, environmental organisations and climate scientists have urged the government to prioritise addressing climate change and reducing emissions by rejecting new coal mine projects.
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Coal producers' influence on Australian politics
Coal has been a significant part of Australia's economy since the late 1700s. In 2020, Australia was the second-largest exporter of coal in the world, with exports totalling $55bn. Coal is Australia's largest energy resource, and it accounted for 64% of energy production in 2021.
The Australian government has taken several steps to protect coal producers, even as the country faces international criticism for its lack of climate action. The government has approved new coal mines and extensions, provided tax subsidies to fossil fuel companies, and invested in 'clean coal' technologies. In 2024, the government approved three major coal mines projected to produce 350 million tonnes of coal and 936 million tonnes of emissions. The government has also cut spending on renewable energy sources and withdrawn from international climate initiatives.
The Australian Commonwealth government is responsible for making policies on offshore coal exploration, while state governments handle onshore exploration. The Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) and the Clean Energy Act 2011 are the primary Commonwealth environmental laws applicable to coal mining. The EPBC Act provides a framework to protect and manage nationally and internationally significant flora, fauna, ecological communities, and heritage sites. The Australian government has also established the water trigger' provisions under the EPBC Act to protect water resources from coal development impacts.
However, critics argue that the government's actions do not go far enough to address climate change. The Climate Change Bill, passed in 2022, has been called largely symbolic, as it does not outline specific measures to achieve its targets. Additionally, the government has been accused of dismantling Australia's emissions trading scheme and providing extra support to the coal industry. Prof Samantha Hepburn, a climate law expert, asserts that the mining lobby has "distorted" policy-making.
The influence of coal producers on Australian politics is evident through the government's continued support for the industry, despite international pressure to transition away from coal. While coal has historically been integral to Australia's economy, critics argue that the government's actions hinder progress towards addressing climate change.
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Coal's contribution to Australia's economy
Coal has played a significant role in Australia's economy, with the country becoming the number one coal exporter in 1984. Coal exports have brought in substantial revenue, with export earnings from black coal totalling $43.37 billion in 2020, although this figure has been decreasing. Australia is the fifth largest producer and the second-largest exporter of coal globally, and it has the fourth-largest share of coal reserves in the world. Coal exports to China have ceased since 2021 due to import restrictions, but India, Japan, the European Union, and Korea remain significant importers of Australian coal.
The Australian government has taken steps to protect the coal industry, such as approving new mines and providing tax subsidies and investments to fossil fuel companies. In 2024, the government approved three major coal mines projected to produce 350 million tonnes of coal. The government has also withdrawn from global clean energy initiatives and defunded renewable energy projects, opting instead to invest in new gas basins and plants.
However, critics argue that the economic benefits of coal are overstated. While coal exports totalled A$55bn in 2021, less than a tenth of this revenue went directly to Australia, contributing only about 1% to national revenue. Additionally, the coal industry employs about 40,000 people, a relatively small number compared to other sectors.
The coal industry's impact on the environment is also a significant concern. Coal-fired power plants in Australia have been criticised for exceeding pollution limits, and the government has been accused of dismantling emissions trading schemes and failing to restrict emissions from fossil fuel producers. Despite international commitments to combat climate change, Australia has been reluctant to phase out coal, instead prioritising its economic contributions.
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Australia's coal exports
Australia has a long history of coal production and export. Coal was first discovered in the country in 1797 in New South Wales, and the first exports left Newcastle in 1799, bound for India. In the 1800s, coal mining began in Queensland, Victoria, Tasmania, and Western Australia. By 1901, Australia was exporting several million tonnes of coal annually, and by the 1940s, it had become integral to the economy, used in locomotives, steam mills, and grinding wheat. After World War II, Australia began exporting coking coal to Japan for steel production, and soon after to South Korea and Taiwan. In 1984, Australia became the world's top coal exporter.
Today, Australia is the world's second-largest coal exporter, with coal being the country's largest energy resource. In 2021-22, Australia exported 10,173 PJ of coal and coal products, accounting for 57% of the country's total energy exports. The main importers of Australian coal include India, Japan, South Korea, Taiwan, and the European Union. Australia has nine major coal export ports, including the Port of Newcastle, New South Wales, which is the world's largest and most efficient coal handling operation.
The Australian government has taken steps to protect the country's coal industry, particularly in terms of policy-making and environmental regulations. The Commonwealth government is responsible for policy on offshore coal exploration, while state governments handle policy on onshore exploration. The Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) and the Clean Energy Act 2011 are the main environmental laws applicable to coal mining. The EPBC Act focuses on protecting matters of national environmental significance, such as water resources and biodiversity, and works in conjunction with state and territory governments.
In December 2024, the Australian government approved three major coal mines—Caval Ridge, Boggabri, and Lake Vermont—expected to produce 350 million tonnes of coal. This decision was controversial, as critics argued that coal combustion contributes to climate change. However, the Environment Minister defended the projects by emphasizing their use in steel production. While Australia has set targets for reducing emissions and achieving net zero by 2050, the government's actions suggest a continued reliance on coal, at least in the short term.
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Coal's environmental impact
Coal is an abundant and inexpensive fuel source, but it has significant environmental impacts. In 2022, coal accounted for 64% of Australia's energy production and 32% of its Total Energy Supply (TES).
The Australian government has a responsibility to protect water resources from the impacts of coal and coal seam gas development through the 'water trigger' provisions of the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act). The EPBC Act is triggered if a proposed action is likely to have a significant impact on a matter of national environmental significance. The Australian Parliament also passed the Climate Change Bill in September 2022, which includes national targets of cutting emissions by 43% by 2030 and reaching net zero by 2050. However, this bill is largely symbolic, and it is unclear how these targets will be achieved.
The approval of three major coal mines in December 2024, projected to produce 350 million tonnes of coal and 936 million tonnes of emissions, was controversial. Critics argue that coal combustion contributes to climate change, regardless of its end use. Additionally, Australian coal-fired power plants have been found to exceed pollution limits, with levels of pollution that would be illegal in the US, Europe, and China.
The environmental impacts of coal are far-reaching. Coal mining can alter the landscape, as seen in the Appalachian Mountains, where mountaintop removal and valley fill mining have caused significant changes. Coal extraction can also lead to the release of pollutants that harm aquatic wildlife downstream. Coal ash, a byproduct of coal combustion, can contaminate groundwater if not properly stored. Coal transportation can also result in environmental disasters, such as the Shen Neng 1 coal carrier collision with the Great Barrier Reef in 2010.
The burning of coal releases numerous toxic pollutants into the air, water, and land, affecting both human health and ecosystems. These pollutants include mercury, soot, and other trace elements. The electric power industry, with coal as the dirtiest fuel, is the largest toxic polluter in the country. Thermal pollution, caused by the use of water as a coolant, also degrades water quality and impacts aquatic organisms.
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Frequently asked questions
Yes, the Australian government has been known to protect coal producers. In 2024, the government approved three major coal mines, projected to produce 350 million tonnes of coal. The government has also provided tax subsidies to fossil fuel companies and invested in clean coal technologies.
The Australian government has implemented policies that favour coal producers, including approving new mines and providing financial support. The government has also withdrawn from global climate initiatives and defunded renewable energy projects.
Coal has been integral to Australia's economy since the 1900s. It is the country's second-biggest export, and the government often credits coal for much of the country's wealth. Coal exports totalled A$55bn in 2020, although most of this wealth was kept by mining companies.
Coal is a non-renewable fossil fuel and the worst emitter of greenhouse gases. Coal-fired power plants in Australia have been found to exceed pollution limits, and the government has been criticised for its lack of climate action.
The Australian government's refusal to give up coal has been met with criticism, especially in the lead-up to global climate talks. While some rural communities depend on coal jobs, most voters want tougher climate action.
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