Fossil Fuel interests - it’s time their bluff was called.
Energy and climate change Minister Chris Bowen has stared down the Australian Petroleum Production & Exploration Association’s (APPEA) opposition to the government’s price cap. He called out their desire to preserve the big profits they are making from the war in Ukraine.
This is important as the climate crisis makes it essential for governments to take back control of the political economy from fossil fuel interests. They have dominated political economies around the world for two centuries while providing the vast quantities of energy our civilisation has needed to develop to its current state. Now they are doing more harm than good and must be phased out.
Even though the climate is finally a high priority for many, and renewables have become cheaper than fossil fuels in most applications, they are still trying to slow the transition and keep themselves in the game for a few more decades.
Minister Bowen acknowledged that whilst APPEA is just doing its job of representing its members’ interests, governments must act in the national interest. Like many other institutions, APPEA are also representing the interests of wealth in a political economy that is set up to favour the wealthy - an economy that is the product of a class society that divides people according to their class background and favours or oppresses accordingly. Wealth and power are rewarded with more wealth and power.
Bowen’s stance has demonstrated that the power of the wealthy class is illusory and can crumble when stared down by a confident government with majority support. Australia’s parliament has a comfortable majority in favour of decisive action to address the climate crisis. Labor in opposition and in the first months of government was understandably cautious. They have been careful in crafting climate policies that won’t overly upset the dominant class. But recent overreach by the representatives of the wealthy have clearly shown that their interests do not align with the national interest.
Australia can now build on this breakthrough and implement comprehensive climate and energy policies that are actually capable of addressing the climate crisis instead of the piecemeal policies that wealthy interests can get around. An effective carbon price is essential if we are to bring down emissions quickly enough to avert the worst of the crisis. Climate dividends is the type of carbon price most likely to receive popular support and efficiently addresses emissions as close as possible to their source, the mine, well or port.
Wealth interests have long opposed carbon pricing because they know it can be effective and would interrupt the ‘trickle-up’ effect of neoliberalism that has favoured the wealthy for the past 50 years. It is understandable, but unacceptable that they would like to extract a few more decades of profit from fossil fuels but governments must continue to put the national interest and the interest of humanity first.
CCL can now advocate climate dividends with increased confidence and encourage the government and the parliament to continue to put the interests of the nation ahead of those of the small, but up-to-now dominant class.
P.S. Since this blog was published the Energy Users Association of Australia has appreciated the government for standing up to the gas industry.
