Woodside Energy and its companions might face a crippling carbon emissions invoice if proposed new fuel fields off the west coast go forward, unbiased modelling claims.
There could be a cumulative legal responsibility of as much as $63 billion to 2050 from the Burrup Hub liquefied pure fuel (LNG) export venture, in line with analysis launched on Wednesday.
Think tank Climate Energy Finance (CEF) has tallied the associated fee primarily based on the just lately legislated emissions safeguard mechanism and the event of the proposed Browse and Scarborough mega-gas fields off the WA coast, if emissions at current fuel amenities should not lower.
The safeguard mechanism doesn’t cease the brand new initiatives going forward, however does convey them underneath emissions controls from day one.
CEF director Tim Buckley mentioned Woodside faces mounting “investor unrest” about its path and local weather commitments.
Critics say Burrup could be essentially the most polluting venture ever developed in Australia, exporting a number of the world’s dirtiest LNG for as much as 50 years.
The new modelling calls on the board to urgently re-evaluate the funding case for the initiatives, and use the just lately legislated safeguard mechanism to put money into emissions discount at its current amenities.
Under the mechanism, taxpayer-funded credit can be found if massive emitters resembling Woodside outperform their onsite emissions discount obligations.
But with the carbon value set to rise yearly and free permits set to decrease as emission limits tighten, the decarbonisation funding incentive is important and rising, Mr Buckley mentioned.
The default choice to do nothing and pay for carbon offsets will turn into more and more costly for Woodside, he mentioned.
The CEF report recommends numerous methods to decarbonise LNG operations, together with by utilizing renewable power era and storage to exchange fuel when operating big-emitting processing vegetation.
Mr Buckley mentioned there may be additionally strain on Woodside to show if carbon seize and storage (CCS) expertise – a most well-liked technique within the fuel trade to attain net-zero emissions – can work persistently on the scale claimed by builders.
“Importantly, any investment in CCS should be paid for by Woodside, under the polluter-pays principle,” he added.
He mentioned Woodside is accountable for one per cent of the worldwide carbon funds to 2050 when emissions exported to prospects are included, which implies it has a accountability to speed up its decarbonisation plans this decade.
Woodside has been contacted for remark.
Source: www.perthnow.com.au
