Australia’s gas and coal producers are facing greater uncertainty in their top market as Japan drafts new targets to slash demand for the two fossil fuels by 2030.
In a draft report released this week, Japan’s government said it expected non-fossil fuel power supply sources to account for roughly 60 per cent of the country’s energy mix within the next nine years, while coal is forecast to fall by 40 per cent and liquefied natural gas (LNG) will nearly halve.
Japan, the biggest buyer of Australian coal, has outlined plans to sharply cut carbon emissions in its energy mix.CREDIT:MICHELE MOSSOP
The shift challenges the outlook for Australia’s coal and gas industries as well as government coffers, which rely heavily on revenue from the two fossil fuels that rank among the country’s most valuable exports.