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Plus, South Australia's lessons for Spain
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Today’s newsletter looks at what the results of the Australian election mean for climate action and the country’s bid to host next year’s COP. Plus, we explore how a major South Australian power outage in 2016 may offer some guidance for Spain as it responds to a nationwide blackout last week. For unlimited access to climate and energy news, please subscribe

Australia’s campaign continues...for COP31

By David Stringer 

Voters in Australia enthusiastically endorsed Prime Minister Anthony Albanese’s incumbent Labor Party government for a second three-year term in a Saturday election, rejecting an opposition that pledged to review the nation’s “fantasy” climate targets and favored a slower-paced energy transition.

Yet green policies ranked well behind issues like housing and health in Albanese’s own campaign. And while his government has made significant advances on climate action, activists see a need for a more assertive approach in a nation that’s one of the developed world’s largest per capita polluters, and among the top exporters of coal and natural gas. 

A renewed focus on emissions cutting is also seen as crucial as Australia’s government accelerates its next pitch for votes — seeking to persuade climate diplomats to back the country’s joint bid with Pacific nations to host the COP31 United Nations climate summit in 2026.

“They have been given a huge mandate to continue in the direction that they have been going, and to go further, faster and to do more,” says Amanda McKenzie, chief executive officer of the Climate Council, a non-profit that advocates for action on decarbonization.

Campaigners are closely watching for Australia’s government to set out its delayed emissions cutting targets for 2035, and for a decision on whether or not to approve a request to extend the life of North West Shelf, the country’s largest and oldest liquefied natural gas export facility. Albanese’s administration has faced criticism over decisions to back expansions and extensions for fossil fuel production, even as it also supports a ramp up in renewable energy.

In brief remarks on climate in his victory speech, Albanese stressed the need to capture the economic benefits of clean energy. Total investment in Australia’s energy transition fell roughly 5% last year to $22.6 billion, though remains about double the amount in 2020, according to data compiled by BloombergNEF. 

“Climate change is a challenge we must act together to meet for the future of our environment,” Albanese said at an event in Sydney. “Renewable energy is an opportunity we must work together to seize for the future of our economy.”

Anthony Albanese Photographer: Brent Lewin/Bloomberg

Australia’s push to beat Turkey for the rights to host COP31 is seen, at least in part, as a move to underline the country’s credentials as a destination for green investment. The UN last month urged the regional grouping of Western European and other states — which includes Australia – to make a decision on where the event will take place by June.

In one of the few climate-related announcements during Australia’s election, Albanese endorsed Adelaide, a city of about 1.5 million people in South Australia, to stage the talks. The state, which already generates more than 70% of its electricity from renewable sources, is regarded as a global trailblazer in the energy transition.

“Hosting COP31 would send a powerful signal, but we need to walk the talk,” said Marilyne Crestias, head of policy at the Clean Energy Investor Group, which represents renewables investors and project developers. “This is our chance to demonstrate that Australia is serious about climate action.”

In another major election in the region Saturday, Singapore’s People’s Action Party — which has governed for six decades — was returned with a higher share of the vote than in a 2020 poll. While the city-state accounts for only about 0.1% of total global greenhouse gas emissions, on a per capita basis it ranks higher than nations including China.

Prime Minister Lawrence Wong’s administration has pledged to stick with a target to hit net zero by 2050, boost flood resilience and improve food security amid changing weather patterns.

— With assistance from Ishika Mookerjee and Sheryl Tian Tong Lee

Big profile

21.75
This is Australia's GHG emissions per capita in tons, making it one of the largest polluters by this measure in the G-20 bloc.

What's the hold up?

"The roll out of renewable energy is taking longer than expected. But more worrying is the fact that we don't currently see a path to meaningfully decarbonising hard to abate industrial sectors and electrifying the vehicle fleet will take decades."
Kristian Kolding
Head of consulting for Oxford Economics Australia

Lessons from South Australia

By Akshat Rathi

The world is waiting to hear from the Spanish grid operator for answers on what caused a nationwide blackout last week, but that hasn’t stopped speculation that a high share of solar power on the grid was somehow a culprit.

For those who’ve worked in the energy industry in Australia, these feelings of uncertainty and blame directed to renewables sound familiar. 

On Sept. 28 in 2016, the state of South Australia’s grid was hit with a blackout. At the time it was generating a high proportion of its power from wind turbines. And what happened in the years that followed is worth examining to understand how blackouts occur in an era in which renewables account for an of increasing share of the electricity mix, and how the grid continues to develop as a result.

What went down on that day? The Australian Energy Regulator’s report in 2018 summed it up:

It was triggered by severe weather that damaged transmission and distribution assets, which was followed by reduced wind farm output and a loss of synchronism that caused the loss of the Heywood Interconnector. The subsequent imbalance in supply and demand resulted in the remaining electricity generation in SA shutting down. Most supplies were restored in 8 hours.

So were renewables to blame? A wind farm contributed, but so did many other things. “The discourse on social media and traditional media tends to hyperfocus on a single cause,” said Ketan Joshi, author of Windfall, a book that explored the mistakes and opportunities of renewables deployment in Australia. “But no one cause was alone sufficient to have caused the blackout.”

Cooler heads prevailed at the grid operator. In the short term, utilities increased the share of reserve gas power plants, improved weather warnings and synchronous condensers (a device that mimics a rotating power turbine) on the network. Over the longer term, electricity providers added tons of lithium-ion batteries onto the grid and increased the share of power generated from cheap, clean solar and wind farms.

In 2017, for example, Tesla Inc.’s Elon Musk promised to build a battery for South Australia’s grid in a mere 100 days. And he delivered what was then the world’s largest grid-connected battery, helping to kickstart an Australian energy storage boom that BloombergNEF forecasts will see 2.5 gigawatts of new utility-scale capacity added this year.

Read More: Australia Is Quitting Coal in Record Time Thanks to Tesla

Nonetheless, Joshi said the blackout led to years of misinformation about renewables. He’s documented many examples of politicians bringing up the 2016 blackout to slow down policies aimed at deploying renewables.

But renewables kept advancing. “Engineers basically dealt with the problem by looking at the evidence, but equally Australia had a democracy that could withstand the level of disinformation being spread about renewables,” said Joshi. “The challenge in Spain’s case is to ensure the attacks don’t find purchase.”

Read more of our coverage on Spain’s blackout:

Spain Discloses New Power Grid Failure on Day of the Blackout

Before Blackout, Spain’s Power Grid Investment Lagged Solar Boom

Why Spain’s Rooftop Solar Owners Weren’t Spared From the Blackout

Worth a listen

Last week Canadians elected Mark Carney, leader of the Liberal party, to be their prime minister. Carney is a newcomer to politics, but is well known in international finance and climate circles, running both the Bank of Canada and the Bank of England, and founding the Glasgow Financial Alliance for Net Zero (GFANZ). Canada is far from reaching its legally mandated goal to achieve net zero by 2050, and has one of the highest emissions per capita of anywhere in the world. Now Carney has been elected, can he translate his international climate leadership into domestic policy, or will climate fall by the wayside as he fortifies Canada against a trade war with the US?

Bloomberg Green senior reporter and former Toronto Bureau Chief, Danielle Bochove, joins Zero to discuss. Listen now, and subscribe on AppleSpotify, or YouTube to get new episodes of Zero every Thursday.

Mark Carney Photographer: David Kawai/Bloomberg

Attention all filmmakers

Do you have a compelling story you want to tell? The Bloomberg Green Docs competition is open to all eligible filmmakers who would like to compete to win a $25,000 grand prize for a short climate documentary. The aim is to explore our climate future with documentaries that reveal the world we are making today. Films must be under 10 minutes and submissions will be accepted through May 23. The winner will be announced at the Bloomberg Green Docs Film Festival in Seattle on July 16. Visit the Bloomberg Green Docs official site for more information and rules.

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