World leaders have signalled an end to the fossil fuel age, committing for the first time to decarbonise the global economy by the end of this century.
In a historic announcement at a meeting of the G7, world leaders agreed to a global emissions reduction target of 40-70% by 2050 and to transform the energy sectors of G7 countries over that period.
The agreement is an important milestone as the world accelerates action on climate change in the lead-up to the Paris talks later this year.
With the end of the fossil fuel era now placed firmly on the global political agenda, the market for Australia’s coal will continue to shrink. Big players like the US, Germany and China are now indicating they are moving away from coal. This is a big trend for the twenty-first century.
The pollution from Australia’s coal alone, if developed, would take the world two-thirds of the way to a two-degree rise in global temperature.
There will be little market for Australia’s coal in a global economy that is rapidly decarbonising. Australia will continue to lose opportunities to other countries that have seized the renewable energy revolution unless we put in place long-term policy settings to allow the renewable energy industry to thrive.
For more detail on the agreement, head here.