Picture taken on January 23, 2019 shows a bucket wheel excavator mining lignite from the Welzow-Sued brown coal opencast mine in Welzow, eastern Germany. - The so-called "Kohlekommission" (coal commission), a governmental commission for growth, structural change and employment, that is meeting in Berlin on January 25, 2019, is to announce a roadmap for exiting coal as part of efforts to make Germany carbon-neutral by 2050. - Germany OUT (Photo by Patrick Pleul / dpa / AFP) / Germany OUT (Photo by PATRICK PLEUL/dpa/AFP via Getty Images)
UPDATE: As global energy dynamics shift, the Australian Liberal Party is being urged to reconsider its stance on coal, which remains a dominant power source. Recent discussions highlight that coal, particularly thermal coal used for electricity production, still accounts for over 85% of global coal output, despite widespread beliefs about its decline.
In Asia, coal is crucial, producing over 80% of the world’s thermal coal, with major contributions from China, India, and Indonesia. These countries rely heavily on coal for economic growth, where the share of coal in electricity production includes more than 60% in Mongolia, India, and Indonesia. The urgency for affordable energy solutions in these developing nations underscores the continuing relevance of coal.
Despite increasing investment in renewable energy—currently 15% or less in most Asian countries—electricity availability remains limited. For instance, the average Australian consumes roughly six times the electricity of an average Indonesian. This stark disparity emphasizes the need for reliable energy sources like coal, which has historically provided low-cost electricity.
In the United States, coal’s share of electricity has plummeted from 50% in 2000 to just 15% today. However, recent support for coal from the Trump administration, including halting the closure of coal-fired plants, signifies a potential reversal in energy policy that could influence global trends.
Across Europe, where renewable energy has surged, recent blackouts have sparked debates about the reliability and economic risks of solar and wind power. German Chancellor Friedrich Merz has called for reconsideration of coal plant closures, reflecting a growing unease with stringent green policies.
Meanwhile, the Australian government aims to boost renewable energy to 75% by 2030. However, experts are questioning the feasibility of this target, citing concerns over reliability and economic implications. Judith Curry, a U.S. scientist, argues that the climate system’s complexity cannot be simplified to a single factor such as carbon emissions.
The Liberal Party faces a critical decision: to pivot away from its current renewable-focused strategy toward a robust coal policy. With coal supplying nearly 60% of electricity in Victoria and New South Wales, a commitment to coal could stabilize energy supply and support economic growth.
The urgency of this decision is compounded by the impending elections, particularly in Victoria, where energy policy could sway voter sentiment. Analysts warn that failing to present a coherent energy strategy centered on coal could jeopardize the Liberals’ electoral future.
What’s Next: The Liberal Party must act decisively, considering studies for new coal-fired plants in both Victoria and New South Wales by the early 2030s. Political courage will be essential to reshape their energy narrative and regain public trust.
As energy demands grow, especially with the rise of AI data centers requiring reliable electricity, coal may emerge as a necessary ally in Australia’s energy landscape. The Liberals’ embrace of coal could redefine their political fortunes and influence Australia’s energy trajectory for years to come.
This developing situation demands immediate attention, as the Liberals’ next steps will be pivotal in shaping not only their party’s future but also Australia’s energy security and economic resilience.
