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https://theconversation.com/if-australia-and-indonesia-agreed-to-end-new-thermal-coal-mines-it-could-drive-the-green-transition-271309>
"In the 1960s, major oil-producing nations formed a cartel to drive up the
price of oil. It worked. For decades, nations in the Organization of the
Petroleum Exporting Countries (OPEC) have agreed to manage supply and raise
prices.
Economists have long recognised cartel market power can bring accidental
environmental benefits. By driving up prices, demand for polluting products
drops. One recent analysis found OPEC’s actions had avoided 67 billion tonnes
of carbon dioxide emissions between 1971 and 2021 – equivalent to around three
years of global oil consumption.
There’s no OPEC for thermal coal. However, Australia and Indonesia together
account for around two thirds of seaborne thermal coal exports. If these two
nations began acting in tandem to end the approval of new mines, falling future
supply would gradually increase prices.
Our recent research points out that a formal treaty to phase out new thermal
coal mine approvals would not only bring climate benefits, but could also
benefit national budgets, state royalties and regional jobs.
What we’re proposing blends climate action and self-interest. If restricting
coal supply boosted prices, producer states would benefit from increased
royalties. Owners and workers at existing mines would benefit from stabilising
prices. Finally, the green energy transition would be protected from being
undermined by a race to consume ultra-cheap coal.
In the 1970s, OPEC’s engineering of higher oil prices drove a shift to more
fuel-efficient cars and triggered intense interest in alternative energy
sources such as solar. In our time, solar, wind and energy storage have come of
age. A treaty to end new coal mines would make the shift even more appealing."
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
