Climate Policy Engagement Analysis
Climate Policy Engagement Overview: The Australian Institute of Petroleum (AIP) appears to have had limited engagement on climate policy in 2021-23. Where it has engaged, however, AIP appears to be broadly unsupportive of action on climate change and has advocated for government to delay or weaken ambitious policy interventions.
Top-line Messaging on Climate Policy: The Australian Institute of Petroleum appears to support both the Paris Agreement and the target of net-zero by 2050 in its comments on the Safeguard Mechanism Reforms in September 2022. However, in its 2021 climate change statement, AIP describes climate change as being one half of a dual challenge, the other half being the supply of reliable and affordable energy. In the same statement, the AIP appears to call for policy that also considers both sides of the ‘dual challenge’ at the lowest cost to society, stating a preference for a market-based response using international offsets and a carbon price.
Engagement with Climate-Related Regulations: The Australian Institute of Petroleum has had limited direct engagement on climate-related policy and regulations since 2017. However, in September 2022 comments on the Australian Safeguard Mechanism Reforms, AIP appeared unsupportive of declining baselines and appeared to support tailored treatment of emissions-intensive, trade-exposed (EITE) industries as well as international offsetting with some conditions. Advocacy for these provisions under the Safeguard Mechanism undermines the original climate ambition of the policy.
Positioning on Energy Transition: The AIP do not appear to support the energy transition, however the organization appear to have limited engagement on the issue in 2022-2023. In its comments on the National Electric Vehicle Strategy, in October 2022, the association appeared unsupportive of the policy objectives by supporting a longer-term role of internal combustion engine (ICE) powered vehicles over rapid electrification. Also, in its 2021 climate change statement, the association advocated for Australia’s petroleum industry to not be competitively disadvantaged by climate policy in Australia, appearing to suggest that Australia should not be a leader in policy surrounding the energy transition.