The Australian government is set to create a finance facility of $2 billion dedicated to supporting investments in green energy and infrastructure in South-East Asia.
This initiative aims to capitalise on the increasing demand for renewable power in the region from the present time up to the year 2050.
The transition to a sustainable climate involves significant systemic transformations. There is a global necessity to alter the energy sources for households and vehicles, upgrade machinery in factories and farms,and reconsider the materials used in construction for both properties and infrastructure.
This transformation necessitates investment in various metals and materials, encompassing those essential for batteries and rare earth minerals.
Simultaneously, it is crucial to expand the availability of carbon credits to counterbalance emissions that are challenging to reduce or mitigate, and to offer incentives for the process of decarbonisation.
A report by Nicholas Moore AO directed towards theAustralian Government states that “Australia’s direct investment into South-East Asia has stagnated in recent years, while overall direct investment into the region from other countries has increased materially.”
By the year 2040, forecasts from the report indicate that the potential consumer market in South-East Asia, as gauged by households' after-tax income, is anticipated to be 10 times greater than that of Australia.
The report places emphasis on opportunities within ten pivotal industry sectors, namely agriculture and food; resources; green energy transition; infrastructure; education and skills; visitor economy; healthcare; digital economy; professional and financial services; and creative industries.
According to projections, South-East Asia is anticipated to become the fourth-largest economy globally by the year 2040. The region boasts a population of 687 million, with 55% under the age of 35.
This youthful demographic sets the foundation for a substantial and productive working-age population, not only until 2040 but also into the future.
Nuclear-powered Australia
At COP28 in December, over 20 countries spanning four continents expressed their commitment to significantly increase their nuclear energy capacity, aiming to triple it by the year 2050.
Australia stands as the sole nation among the top 20 economies that has not adopted domestic nuclear power or initiated steps toward its implementation.
There is a divergence in perspectives between the Australian Labor Party and the Coalition regarding nuclear power.
The Labor Party views nuclear power as a competitor to renewables, while the Coalition sees nuclear power as a complementary source alongside renewables.
Australia's current energy mix comprises approximately 21% gas, 47% coal, and 32% renewables.
In contrast, Ontario province in Canada has a different energy composition, with around 5% gas, 35% renewables, and a substantial 60%from nuclear sources.
This comparison highlights the varying approaches and energy sources in different regions, reflecting the differing opinions on the role of nuclear power in the overall energy landscape.
When averaging the electricity costs across all Australian states and territories, the average rate is approximately 30 cents per kilowatt-hour.
In comparison, residents in Ontario, Canada, pay a lower average rate of 16 cents per kilowatt-hour for electricity. This indicates a significant difference in electricity costs between the two regions.
The ambitious renewable energy targets require the construction of 58 million solar panels and nearly 3,500 wind turbines by the year 2030.
Additionally, the plan involves the installation of approximately 28,000 kilometers of new transmission poles and wires by 2050, which is equivalent to almost the entire coastline of mainland Australia.
However, the current rollout is facing delays, and the situation is expected to worsen due to the government's increasingly burden some environmental regulations, commonly referred to as "green tape."
These regulatory hurdles are contributing to setbacks in the timeline for achieving the renewable energy goals.
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