Accelerating the Phase Out of Coal in Australia: Key Trends and Drivers

Abstract

This chapter provides a concise overview of Australian experience and learning about policies and strategies for accelerating the rapid, well managed and equitable phase out of coal. Coal mining and coal fired power production have been important foundations for Australian economic and export growth for well over a hundred years. Coal based industries have also been key sources of economic prosperity and employment for many Australian regional communities. While Australian coal industry owners, investors and workers retain significant political influence, international pressure to reduce CO₂ fossil fuel emissions combined with sharp falls in the price of renewable energy are likely to continue to accelerate the phase out of coal. The most significant factors influencing coal phase out trends and impacts in Australia are the relative price of fossil fuels and renewable energy; international demand for Australian coal; and government climate and energy policy decisions. Climate activists and advocacy groups are also deploying an increasingly diverse, creative and effective array of legal, financial and corporate governance strategies highlighting the physical, financial and reputational risks of coal investment, mining and production. There is also increasing awareness of the importance of respectful, wellplanned, well-resourced just transition strategies in broadening and deepening public support for a rapid, just and well managed transition away from coal.