Government Mandates can Help Australia to Seize Renewable Energy Export Opportunities – Watts Up With That?

Essay by Eric Worrall

If it is a profitable opportunity, why is government intervention required to make it happen?

Australia could become the world’s first net-zero exporter of fossil fuels – here’s how

Published: June 18, 2025 6.09am AEST

Frank Jotzo Professor, Crawford School of Public Policy and Director, Centre for Climate and Energy Policy, Australian National University

Annette Zou Senior Researcher, Centre for Climate and Energy Policy, Australian National University

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Emissions embedded in Australia’s exports do not count towards our national emissions targets. But they contribute to climate change – and they’re the reason for Australia’s international reputation as a fossil-fuel economy. 

On the bright side, Australia boasts huge potential for low-cost renewable energy and a knack for resource industries. 

We can, and should, become a “renewable energy superpower”. This term refers to the potential for Australia to use its bountiful renewable energy resources to make commodities such as iron, ammonia and other products and fuels in “green” or low-emissions ways.

So how does Australia give salience to this idea on the global stage, while our fossil fuel exports continue? The solution could be a new net-zero target for Australia, in which emissions from green exports are tallied up against those from fossil fuel exports.

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Read more: https://theconversation.com/australia-could-become-the-worlds-first-net-zero-exporter-of-fossil-fuels-heres-how-259037

There probably is a market for boutique green energy products. If your luxury sports EV costs a million dollars, it probably doesn’t matter if the steel or aluminium used to manufacture that vehicle costs $100 / pound, because it was manufactured using green energy. Likewise, there are people today who are driving hydrogen powered vehicles in California – at least those who haven’t yet blown up.

But is a boutique scale market something which can sustain an entire nation, on the same scale as Australia’s multi-billion dollar fossil fuel exports?

Here’s a thought. Rather than pushing for the government to rig the market, to make your unprofitable green energy scheme look marginally viable, how about waiting until there is a real market for the product? A market whose profit potential genuinely attracts private investment?

That way, Australia’s push to be a “renewable energy superpower” might make money for Australia, instead of draining the productive economy to fund yet another green boondoggle.

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