Labor wins Australian parliament lower house majority

  • : Coal, Coking coal, Emissions, Hydrogen, Natural gas
  • 22/05/31

The Australian Labor Party has secured enough seats to govern with a majority in the federal lower house of parliament, although it must still negotiate with opposition political parties to pass energy legislation in the upper house, the Senate.

Labor adopted a platform of more ambitious 2030 carbon emissions reduction targets and a focus on green over blue hydrogen in the federal election. This includes a 2030 emissions reduction target of 43pc of 2005 levels that is deeper than the 26-28pc under the previous government. It does not include the over A$1bn ($719mn) for [carbon capture and storage (CCS) for LNG and hydrogen projects](CCS) pledged by the previous government, with Labor preferring green hydrogen projects over blue hydrogen with associated CCS. Green hydrogen is made using renewable energy sources, while blue hydrogen is made using natural gas.

Labor, which is backed by the union movement including the influential Construction, Forestry, Maritime, Mining and Energy Union, has pledged to protect trade exposed industries, such as export coal mining from its emissions policies. But the Australian Greens want to ban the construction of all new coal, oil and gas infrastructure in Australia.

The Greens are important because of the 76-seat Senate, where it is expected to hold 12 seats following the election. Labor will hold 26 and the main opposition Liberal-National coalition 31, with five seats held by independents and two still in doubt.

Labor will either need to persuade the main opposition to back its legislation in the Senate or muster a diverse group of independents or rely on The Greens to pass bills. The larger Liberal part of the coalition this week chose conservative Peter Dutton as leader, He has indicated that the coalition may not support Labor's climate change policies, leaving The Greens as the most likely ally.


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