- Australia pushes for more substantial climate commitments and enhanced climate finance for developing nations at COP29.
- The country highlights its green hydrogen industry, targeting Asian markets like China, Japan, and India.
- Australia is considering opening its carbon credit market to international transactions, potentially increasing demand for ACCUs.
Australia ramps up its climate efforts ahead of COP29 in Azerbaijan, advocating for more robust climate goals and promoting green hydrogen for Asian markets.
At COP29, Australia plans to push for more robust Nationally Determined Contributions (NDCs) under the Paris Agreement. The country urges nations to enhance their climate action plans. Australia prioritises increased climate finance for developing nations, which will be a key focus during the conference.
One major proposal is the “New Collective Quantified Goal” (NCQG), which aims to replace the $100 billion annual climate finance fund that expires next year. Australia hopes to build consensus around this new framework, ensuring vulnerable nations receive the support they need. Logan Reese, Associate Director of Research at S&P Global Commodity Insights, emphasised that this change is crucial for global climate financing.
Energy Minister Chris Bowen plays a central role in promoting the NCQG. He advocates for financial commitments, particularly for small Pacific island nations. Australia contributed $100 million in 2022 to help these nations build resilience. This support will grow further during COP29.
Australia also focuses on its long-term climate goals. The country aims for a 43% reduction in emissions below 2005 by 2030 and net-zero emissions by 2050. These targets appear in the Climate Change Act of 2022. Additionally, Australia works to achieve 82% renewable energy in its grid by 2030. The Safeguard Mechanism, which requires large companies to meet emissions thresholds, forms part of Australia’s strategy.
At COP29, Australia highlighted its green hydrogen industry. The country plans to develop hydrogen supply chains to serve Asian markets. Australia sees significant potential in countries like China, Japan, South Korea, and India, which import large amounts of Australian coal and iron ore. Tony Wood, Director of the Energy and Climate Change Program at the Grattan Institute, noted that some Asian countries will pay a premium for sustainably produced goods, making green hydrogen an attractive export option.
The Azerbaijani presidency of COP29 focuses on low-carbon hydrogen, aiming to create a global market. Australia stands out in this space, with over 150 renewable hydrogen projects underway. These projects have an estimated production capacity of 17 million tons.
Australia is also considering opening its carbon credit market to international transactions. This could increase demand for Australian Carbon Credit Units (ACCUs), which could raise their price. Recent reports show the cost of ACCUs has risen to AUD 39.65 per ton of CO2, reflecting a global trend of increasing carbon credit prices. In comparison, European Union Allowance prices stand at EUR 66.01 per ton of CO2.
Australia’s actions at COP29 will likely shape its role in global climate discussions. By advocating for more substantial climate commitments and promoting green hydrogen, Australia positions itself as a leader in the fight against climate change.