PERTH (miningweekly.com) – Australia stands to lose A$100-billion in investment in the resources sector if environmental activists are successful in their bid to halt gas developments in the country, independent think tank the Institute of Public Affairs (IPA) says.

“At the beginning of Australia’s Great Energy Crisis, and during a world gas shortage, we need to be developing affordable resources to ensure families can afford their energy bills and small businesses can continue to employ staff, not increasing taxpayers’ funding to fringe activists,” said deputy executive director Daniel Wild.

He noted on Tuesday that new analysis from the IPA shows that A$100-billion in investment is currently under threat, with potential job losses exceeding 174 000, if activist environment groups, which received vastly increased funding by the federal government in October’s mini-Budget, succeed with their demands. 

“This is a test for the federal government. It must decide whether it supports affordable and reliable energy and critical job-creating resource projects, or supports activist environmental groups that seek to undermine our way of life,” Wild said.

Following the Federal election in May, environmental groups the Environment Council of Central Queensland and Environmental Justice Australia, demanded approvals already granted to critical resources projects around Australia be reconsidered. The Federal Minister for the Environment has already acquiesced to 18 out of 19 of these demands.

On top of this, the government directed A$9.5-million of funding to Environmental Justice Australia in October’s mini-Budget.

“The energy crisis we face has been caused by the closure of affordable and reliable baseload power stations and chronic gas supply shortages. It is remarkable Federal Government is actually increasing funding to organisations seeking to prevent much needed energy production at this time,” said Wild.

Previous IPA research has estimated that between 2000 and 2020, ‘green-lawfare’ activism, as allowed by Section 487 of the Environment Protection and Biodiversity Conservation Act 1999, has put A$65-billion of investment at risk in Australia by holding major projects up in court for a cumulative total of 10 100 days, or over 28 years.

“Activists are using our courts to pursue their low-energy, high-cost agenda, which is a hammer blow to Australia’s future economic prospects, and to the communities in regional and rural areas that would otherwise thrive on a decades long pipeline of investment and production,” Wild said.

Wild’s comments echoed those made by the outgoing chairperson of the Australian Petroleum Production and Exploration Association (Appea) earlier this month.

Speaking at the Appea annual general meeting, Ian Davies said that one of the most concerning developments of the past year had been the successful challenge of a National Offshore Petroleum Safety and Environmental Management Authority-approved Environment Plan after drilling had already commenced.

“Our industry is absolutely committed to open, transparent and genuine consultation with Traditional Owners and community stakeholders about our activities. Despite media reports that this was a case about inadequate consultation with Traditional Owners, make no mistake that this was a case squarely aimed at taking advantage of lack of clarity in the law to attempt to shut down our industry.

“As a result, right now, sanctioned offshore projects in Western Australia and the Northern Territory have vessels and equipment on standby at a cost of millions of dollars per day, investors are questioning the safety of their investments and a total of 35 Environment Plans are in limbo while the regulator and proponents assess how they can achieve certainty of project approvals going forward,” Davies said.

The IPA called on the federal government to immediately end all government funding to radical green lawfare groups including the Environmental Defenders Office and Environmental Justice Australia, include natural gas as an investment deemed ‘sustainable’ in order to trigger more domestic energy investment, and repeal its legislated net zero emissions by 2050 targets that are causing the rapid closure of reliable and affordable baseload power stations without equivalent replacement.