Page 4 - AsianOil Week 21 2022

AsianOil COMMENTARY AsianOil

Australian election spells new

uncertainty for oil and gas

Australia’s federal election has resulted in a change of government following a

victory by the Australian Labor Party

POLICY AUSTRALIA’S federal election, held on May 21, the results as an indication of growing public
has resulted in a change of government following appetite for tougher climate and environmental
WHAT: a victory by the Australian Labor Party (ALP). policies, given that a record number of climate
Australia’s oil and Results were still being counted as of the end change-focused candidates has been elected.
gas industry is facing of this week and it was unclear whether the ALP The Greens wasted no time this week in
increased uncertainty would have an outright majority in the House calling for an end to all new coal and natural
following a change of of Representatives. The party still needed to gas developments in Australia. Indeed, Green
government. win one more seat for a majority with 79% leader Adam Bandt said preventing such pro-
of votes counted and securing this outcome jects from going ahead in the country would be
WHY: looked increasingly likely. At the same time, the his party’s priority in negotiations with the ALP.
New Australian Prime Australian Greens had secured their best ever This comes as new Australian Prime Minis-
Minister Anthony result in the election, potentially putting them ter Anthony Albanese pledges to treat climate
Albanese pledges to treat in a position to take a tougher line on climate change as more of a priority than his predeces-
climate change as more change and environmental issues and chal- sor, Scott Morrison. This includes achieving a
of a priority than his lenge the ALP. Climate-focused independents more ambitious reduction of greenhouse gas
predecessor. also achieved better results in the election than (GHG) emissions by 2030 and implementing
expected. policies to support that target. Albanese has said
WHAT NEXT: The shift has been described as significant for that he would implement an emissions reduc-
Greens and independents Australia, which was previously seen as lagging tion target of 43% by 2030. This compares with a
are also expected to be compared to other developed countries when it 26-28% cut from 2005 levels by 2030 as targeted
more vocal after gaining came to tackling climate change. Early sugges- by the Morrison government.
a number of seats. tions for the turnaround in public sentiment on Indeed, the election result is viewed in part
the issue include the fact that climate change has as a rejection of Morrison’s stance on climate
been linked to recent natural disasters such as change, with Albanese talking about ending the
bushfires. “climate wars” in his victory speech and saying
that Australia had the potential to become a
Under pressure “renewable energy superpower”.
The rise of Greens and independents looks set However, it is thought to be unlikely that the
to ramp up pressure on fossil fuel producers new government will significantly change its
in the country. Commentators are also seeing existing environmental and climate policies

Anthony Albanese has
taken over as Australia’s
Prime Minister.

P4 www. NEWSBASE .com Week 21 27•May•2022