Australia’s Queensland legislates emissions targets

: Coal, Electricity, Emissions
24/04/18

Australia's Queensland state today approved two separate laws setting renewable energy and emissions reduction targets over the next decade, as it transitions away from a coal-fired dependent power generation system.

Queensland set net greenhouse gas (GHG) emissions reduction targets of 30pc below 2005 levels by 2030, 75pc by 2035 and zero by 2050 under the Clean Economy Jobs Act, while theEnergy (Renewable Transformation and Jobs) Act sets renewable energy targets of 50pc by 2030, 70pc by 2032 and 80pc by 2035.

The state is on track to surpass the 2030 emissions target, latest data show, as it achieved a 29pc reduction in 2021. Even though the share of renewables in the power mix last year was the lowest across Australia at 26.9pc, it has been increasing consistently since 2015 when it was 4.5pc, according to data from the National Electricity Market's OpenNem website. Coal-fired generation has been steadily falling, down to 42.9TWh or a 65.7pc share in 2023 from 52.9TWh or 83pc in 2018.

Most of Queensland's coal-fired plants belong to state-owned utilities, which the previous Labor party-led government of Annastacia Palaszczuk indicated would stop burning coal by 2035. The new Labor party premier Steven Miles disclosed the 75pc emissions reduction target by 2035 in his first speech as leader last December.

The Energy Act locks in public ownership of electricity assets, ensuring that at least 54pc of power generation assets above 30MW remain under state control, as well as 100pc of all transmission and distribution assets and 100pc of so-called "deep storage" assets — pumped hydro plants with at least 1.5GW of capacity. The government will need to prepare and publish a public ownership strategy for the July 2025-June 2030 and July 2030-June 2035 periods.

A fund totalling A$150mn ($97mn) will also be set up to ensure workers at existing state-owned coal-fired power plants and associated coal mines have access to new jobs and training or financial assistance during the transition.

The Clean Economy Jobs Act sees the government receiving advice from an expert panel on the measures needed to reduce emissions. The government will need to develop and publish sector plans by the end of 2025 with annual progress reports to Queensland's parliament.

By Juan Weik

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

25/03/18

Australia's New Hope boosts coal output in Aug 2024-Jan

Sydney, 18 March (Argus) — Australian coal producer New Hope increased its thermal coal production by 33pc on the year over the first half of its financial year, August 2024–January, while increasing its exposure to the coking coal market. New Hope raised the production rate at its Bengalla thermal coal mine in New South Wales (NSW) to 13.4mn t/yr of ROM coal towards the end of August 2024-January, in line with previously announced plans but below the site's approved capacity of 15mn t/yr. The company mined 4.2mn t of saleable coal at the NSW mine over that period, allowing it to maintain its Bengalla guidance for the 2025 financial year ending 31 July at 8.1mn-8.7mn t of saleable coal, in its half-year financial report. To the north of the site, in Queensland, New Hope produced 1.2mn t of saleable coal at its New Acland thermal coal mine over August-January, up from just 300,000t from a year earlier. The company only mined 1mn t of saleable coal at the mine over its 2024 financial year, ending 31 July 2024. New Hope also negotiated a legal settlement with the Oakey Coal Action Alliance (OCAA), an activist group that had been opposing New Acland's ramp-up, on 13 January. The company's settlement enabled it to maintain New Hope's 2025 guidance at 2.8mn-3.2mn t of thermal coal. But some of New Acland's coal exports may have been delayed by Cyclone Alfred in March, despite its production and legal successes over August-January. The Port of Brisbane , which handles exports from the site, closed for almost a week as the extreme weather system hovered off the coast of Queensland. New Hope also increased its ownership stake in publicly traded coking coal producer Malabar Resources, from 20pc to 23pc, over the last half-year. New Hope diversified its operations as coal prices started falling. Argus ' Australian pulverised coal injection (PCI) and thermal coal prices have been sliding over the last three months. Its coal 6,000kcal NAR fob Newcastle price hit $100/t on 17 March, down by 24pc from $131/t on 17 December, while its PCI low-vol fob Australia price slid by 18pc over the same period. By Avinash Govind Saleable Coal Production mn t August-January 2025 August-January 2024 August 2023 - July 2024 y-o-y Change (%) Bengalla Mine 4.2 3.8 8.0 11 New Acland 1.2 0.3 1.0 300 Total 5.4 4.1 9.1 33 New Hope Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU prepares CBAM export scheme

25/03/17

EU prepares CBAM export scheme

Brussels, 17 March (Argus) — The European Commission is preparing a "solution" for exported goods under the bloc's carbon border adjustment mechanism (CBAM), to be presented before the end of the year. The commission will also expand the scope of the CBAM to "certain" steel and aluminium-intensive downstream products. The changes to the CBAM will be announced as part of a European steel and metals plan. In a draft of the plan to be formally presented on 19 March, the commission points to the need to address the problem of carbon leakage for CBAM goods exported from the EU to non-EU countries. The draft also notes that the commission is currently "quantifying" risks, before proposing an extension of the CBAM to "certain" steel and aluminium-intensive downstream products, so as to address the risk of European producers relocating outside the bloc to avoid higher carbon costs. The metals plan also announces an anti-circumvention strategy for the CBAM to be presented in the second half of 2025. The commission points to the risk of goods from low-carbon production facilities in non-EU countries being redirected to European customers, while carbon-intensive production continues for other markets. The metals plan also points to the risk of "greenwashing" carbon accounting practices, with "electro-intensive metals production benefiting from market-based instruments to appear low-carbon". The commission put forward proposals last month to simplify the CBAM, exempting some 90pc of the firms currently covered by the mechanism. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Timing for EU's 2040 climate goal slips

25/03/17

Timing for EU's 2040 climate goal slips

Brussels, 17 March (Argus) — The European Commission appears to have pushed back an official proposal for a 2040 climate target for the EU, which will further delay the bloc's submission of a 2035 climate plan to the UN. The commission's agenda does not include the presentation of a legal proposal for a 2040 climate target before the end of the first quarter. The commission in February 2024 confirmed its preference for a 90pc cut in greenhouse gas emissions (GHGs) by 2040, from a 1990 baseline — but this was not a formal proposal. The commission had scheduled an amendment to the European Climate Law for the first quarter of 2025. That amendment would write an intermediate target for 2040 into EU law. The 2040 target would also provide the basis for the EU's updated nationally determined contribution (NDC) — or climate plan — to UN climate body the UNFCCC. Countries and jurisdictions were expected to submit updated NDCs, covering up to 2035, to the UNFCCC by 10 February. Officials said work is "ongoing" on the bloc's 2040 climate target. It would be presented "sooner rather than later" and there is still "time left until the end of the first quarter". An EU source indicated reluctance to present a 2040 climate plan before Poland's presidential elections on 18 May, which may have a runoff on 1 June. Poland chairs meetings of EU ministers until 1 July. The source also said several other parties to the UNFCCC have missed the 10 February deadline to submit their 2035 emissions reduction targets. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Brazil to pilot reforestation concession

25/03/17

Brazil to pilot reforestation concession

Sao Paulo, 17 March (Argus) — Brazil's Para state in the Amazon basin will concede reforesting 10,000 hectares (ha) in the Triunfo do Xingu environmental reserve as part of efforts to protect more rainforest ahead of the UN Cop 30 climate summit in November. The 40-year concession will require R258.3mn ($45.3mn) in investments and capture an estimated 3.7mn metric tonnes (t) of CO2 equivalent (tCO2e)/yr, according to the Para state government. The 1.6mn ha Triunfo do Xingu reserve, which was created in 2006, has seen significant environmental degradation in recent years from illegal deforestation. Last year, the reserve lost 1,400km² (870 mi²) to illegal deforestation, the bulk of which was converted into pastureland. The concession, which will be Brazil's first for reforestation, will be a test case for the government's efforts to recover its tropical forests and is possible because of legislation approved in 2023, which allows carbon offsets to be issued on public lands. The auction will take place on 28 March at the B3 stock exchange, in Sao Paulo state. The winner of the project will be allowed to sell carbon offsets and environmental services credits, which will be generated by reforesting and preserving the forest. The sale of some forestry products is also approved. The Para state government estimates that the concession will generate gross revenues of R21.7mn/yr. Para will also sell two other 10,000ha concessions later this year, it said. Brazil has continued to reduce deforestation in the Amazon forest. It lost just 80.9km² of Amazon rainforest in February, down more than 64pc from the same month last year. February deforestation was the lowest on record, according to the science and technology ministry's national space institute INPE. Brazil's goal is to eliminate all deforestation by 2030. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Norway cold on EU VAT power sales harmony

25/03/17

Norway cold on EU VAT power sales harmony

London, 17 March (Argus) — Norway will not harmonise its value-added tax (VAT) legislation for cross-border power sales with the EU despite pressure from market operator Epex Spot, with the country's finance ministry claiming that its current rules are "satisfactory", it told Argus . Norway's finance ministry has not "found any reasons" to consider better integrating its VAT procedures on cross-border power sales, the ministry said, adding that EU rules are not "binding" and that, as such, "there is no ongoing work" to align the Nordic country with the broader European market. The decision follows a series of letters sent by Epex Spot that highlighted its significant objections to the existing VAT arrangements. The market operator argues that the system allows for potential double taxation on some sales while others can go completely untaxed. They added that this increases the risk of VAT tax fraud in Norway, with the system "leav[ing] the door open to well-known tax fraud methods", Epex Spot's public and regulatory affairs director, Davide Orifici, told Argus last year . In response to the ministry's statement, Epex Spot told Argus that while the legislation "is not binding for Norway", it hoped that Norway would align with EU rules "on a voluntary basis" to "secure the Norwegian power market against VAT fraud". It added that Norway's "tax authorities themselves" had confirmed to the media that Norway was, in effect, "keeping the doors open to fraud". Epex conducted discussions with Norway's tax authorities late last year, which were characterised as "good", but the finance ministry appears to be unmoved on EU VAT harmonisation. This is the latest flashpoint in a lingering dispute within Norwegian politics over whether it is best to pull back or move closer to the EU power market. Norway's coalition government fell apart earlier this year as the country's centre party left the ruling alliance over lead-partner Labour Party's willingness to align Norway more closely with the EU and adopt the bloc's fourth energy package. This leaves the Labour Party to govern as a minority government until parliamentary elections take place on 8 September. By Daniel Craig Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more