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Federal government warned coal-producing communities need more than just hydrogen to adapt to clean future

29 Jun 2023

 

The federal government is being warned green hydrogen cannot be a catch-all solution for regions most exposed to a phase-out of coal and gas in the decades ahead.

And it is being urged to work with local communities to build diverse new economies, capitalising on existing skilled labour working in the coal and gas sectors.

A new report from the Centre for Policy Development looks at the unique challenges facing a range of Australia's most coal and gas-exposed communities, including the Hunter, Pilbara, Latrobe and Gladstone regions.

It considers a range of factors that might help or hinder communities as demand for coal and gas dwindles.

That includes measuring how many people in the region are employed in coal or gas, education levels across the workforce, the presence of other industries like agriculture and tourism, and the 'social fabric' of the community.

The report warns that much of the current focus from governments has been on replacing coal and gas production with newer industries like green hydrogen, including setting up 'hydrogen hubs'.

Report author Mara Hammerle says while the industry could be enormously beneficial in many regions, seeking to replace coal and gas with a new "anchor industry" in those communities could be a trap.