PERTH (miningweekly.com) – The Australian Petroleum Production & Exploration Association (Appea) has welcomed a report by advisory firm Deloitte Access Economics, that shows international action on climate change must recognise the link between carbon emissions and economic output.

The report, titled ‘Emissions metrics: Australia’s carbon footprint in the G20’, noted that countries should seek to reduce emissions while maintaining economic growth, by reducing the emissions intensity of their economies.

Appea pointed out that in recent years, Australia’s carbon emission productivity had been improving in absolute terms and relative to the G20 average. Over the period from 2001 to 2011, Australia averaged 1.6% economic growth while keeping total carbon emissions growth to an average of 1.2% – meaning carbon intensity improved.

Appea CEO David Byers said that this report was an important contribution to debate on energy policy and climate policy.

“The G20 aims to enhance global prosperity while also reducing global emissions. To achieve these goals, energy policy and climate policy must recognise the link between emissions and gross domestic product, as well as the differing roles of various nations.”

Australia is the G20’s second-largest natural gas exporter, after Russia, with the country’s major liquefied natural gas (LNG) customers - Japan, China and South Korea - also listed as G20 members.

Byers said that Australia’s large LNG resources meant it could deliver secure, cleaner energy over the long term, domestically and internationally. 

“Australia’s role as an exporter of flexible and reliable lower-emissions energy – in the form of LNG – means it can help drive economic growth, as well as reductions in emissions.

“Because natural gas is a much cleaner-burning fuel than traditional energy sources, exporting natural gas to the world and using more natural gas domestically are among the most meaningful contributions Australia can make to reducing global greenhouse emissions.”

ASX-listed Origin Energy MD Grant King, who commissioned Deloitte Access Economics to conduct the report, on Wednesday said that Australia's response to climate change should be in line with global action but should not make the country’s industries uncompetitive, which would likely move carbon-intensive activity to less efficient countries, therefore, increasing global carbon emissions.

“Australia can play a role not just through setting targets for reducing emissions in Australia, but also by exporting lower emissions energy to developing countries with huge energy growth requirements and currently very high emissions intensity economies.”