In a statement made today to Parliament, Resources Minister Madeleine King acknowledged the resources sector’s importance to Australia’s past, present and future, but noted there are big challenges shaping the world.

“We must continue to work together to achieve the dual objectives of achieving net zero emissions and decarbonisation of our economy while continuing to grow our national prosperity,” Ms King said.

She said Australia’s gas resources are essential for energy security, stability and reliability both domestically and across the Asia-Pacific and will be needed for decades.

“We know that gas is critical to our trading partners’ own net zero pathways. Australia will support our regional neighbours as a stable and reliable partner in ensuring their energy security and supporting their path to decarbonisation.

“Our trade and strategic partners have committed to net zero, but will take different pathways to get there.

“While some countries will be able to transition to net zero rapidly, others will take longer because of the structure of their economies.”

Ms King said that in Australia, gas provides the flexibility needed to add more renewables to the grid, and is a vital feedstock and heat source for industries.

Manufacturing accounted for 26% of Australian domestic gas use in 2020–21. And of this, around 16% was used as feedstock for chemicals, including fertiliser production for the agricultural sector.

“Gas is absolutely essential for energy intensive projects such as extraction, concentration and processing of critical minerals and rare earth elements.

“These are the minerals that are central to the energy transition.”

Noting the resources sector will be crucial in enabling the global climate goals, Ms King said it will also play a role in Australia’s net zero pathway. Since the resources sector is a major emitter, she said, responsible for around one-fifth of Australia’s emissions and will need to play its part for Australia to meet its national targets.

“Almost 70% of the resources companies covered by the Safeguard Mechanism have committed to net zero, many well before the Commonwealth Government did.

“Many Australian resource projects are already at the leading edge globally in deploying renewables, electrification, methane abatement technologies and carbon capture and storage.

“While it is up to companies to make the investments needed to take these technologies forward, the government will also play a role.

“Through the Safeguard Mechanism reforms, we are providing the resources sector with the certainty it needs to invest in technologies and decarbonise its operations.”

Ms King also noted the government has committed to work with stakeholders on environmental law reform to ensure national environmental laws work better for everyone.

“Being responsible over the course of the full life of a project is a key part of maintaining the sector’s social licence.”

The Minister specifically mentioned the decommissioning of projects needing to be performed in a safe, environmentally responsible and timely way.

“Companies need to actively plan and provision for this throughout the life of their projects.

“Offshore oil and gas decommissioning activities, in particular, will increase significantly over coming decades.”

Ms King said the government continues to learn the lessons from the challenges of assuming responsibility for decommissioning the Northern Endeavour while ensuring that taxpayers don’t foot the bill.

“I am committed to ensuring the policy and regulatory regime governing decommissioning is robust, and the necessary safeguards are in place.”

The Minister also pointed to the opportunity for Australia to benefit from the significant investment that will be required, noting “decommissioning is a $60b opportunity for Australia”.

“I want us to capture this investment opportunity to build a competitive, world-class decommissioning and sustainable industry to service demand in Australia and the Asia-Pacific.

“It is important we work together, with other stakeholders, to ensure decommissioning in offshore Australia is done well and done right.”

The full statement can be accessed here.