Investment funds that are reportedly reducing their investment in gas transmission pipelines because of climate change concerns are misguided, according to the Australian Pipelines and Gas Association (APGA).
“Natural gas used directly has around a quarter of the carbon emissions of electricity taken from the grid today,” said APGA Chief Executive Cheryl Cartwright.
“To cut our emissions as soon as possible, we should be encouraging people to switch to natural gas for as many uses as possible.
“For household electricity to compete on emissions with gas delivered directly to homes, it would have to be generated from at least 50 per cent renewable sources, which is clearly not the case at the moment as only around 15 per cent of electricity comes from renewables.
“Natural gas is also a vital feedstock in many manufacturing industries and an essential heat and energy source in many others, including for safe waste disposal such as in hospitals.
“Before suggesting divestment from the very stable gas transmission sector, investment funds should learn a little more about the facts surrounding natural gas and its value to the economy, as well as its contribution to emissions reduction.
“Natural gas has a role to play as Australia increases its use of renewable energy, both in any transition as well as for peak power demand periods.”
