Environmental and economic organizations have strongly condemned the Australian government’s decision to approve the expansion of three coal mines in New South Wales, labeling the plans as “disastrous” and “out of step” with the nation’s climate goals.
Groups like the Australian Conservation Foundation (ACF) have expressed concerns that the expansions could significantly hinder Australia’s efforts to achieve net-zero emissions by 2050. Gavan McFadzean, the ACF’s climate program manager, highlighted the potential impact, stating, “Together, these coal mines will generate more than 1.3 billion tonnes of lifetime emissions, undermining Australia’s climate commitments.”
The expansions approved by Environment Secretary Tanya Plibersek include Whitehaven Coal’s Narrabri mine, Mach Energy’s Mount Pleasant mine, and Yancoal’s Ravensworth mine, with their commissioning extended for a period of eight to 20 years.
Defending the decision
Plibersek defended the government’s approval, asserting that the decisions complied with existing environmental laws. She noted that the emissions resulting from the mines would be considered under the government’s safeguarding mechanism, which is intended to reduce emissions from major polluters. However, critics argue that the current Environmental Protection and Biodiversity Conservation (EPBC) Act 1999 does not adequately address climate change issues.
A report from the University of Melbourne pointed out that the EPBC Act lacks a climate-related “matter of national environmental significance,” meaning a project’s climate impacts alone do not trigger mandatory federal assessment and approval.
While the government has proposed reforms, including the establishment of an independent environmental protection agency and an investment of A$100 million (US$68 million) into environmental approvals, these plans have been deferred indefinitely due to disagreements among ministers.
Concerns over coal viability
The future viability of Australian thermal coal exports is also under scrutiny. The Institute of Energy Economics and Financial Analysis (IEEFA) predicts that export earnings will plummet from A$36 billion in FY2023-24 to around A$21 billion by FY2028-29. This decline is attributed to China’s dominance in the market and decreasing demand from key Asia-Pacific countries like Japan, Korea, and Taiwan.
The IEEFA’s report warns that as demand for Australia’s high-energy coal continues to fall, there may soon be insufficient market support to sustain the mines’ viability.
