Australia’s Recovery Tsar Shrugs Off Accusations of Pro-Gas Bias

(Bloomberg) -- The leader of a commission handpicked by pro-coal Prime Minister Scott Morrison to steer Australia's post-coronavirus economic transition has denied his own links with the fossil-fuel industry and public support for the gas sector create a conflict of interest.

“There has been a public focus on the commission's interests in the energy sector, specifically gas,” Nev Power, the chair of the National Covid-19 Coordination Commission, said in Senate committee testimony on Thursday. “We should be looking at competitive gas supply for its potential as a raw material for both existing and new manufacturing industry.”

Power, the former head of iron-ore miner Fortescue Metals Group, and some other members of the committee have strong links to the fossil fuels industry, drawing condemnation from environmental activists. His call for a gas-fired recovery has drawn fire from climate advocates who say it makes no sense to promote gas when wind and solar energy is already cheaper and cleaner.

Power said he was aware of the need to “avoid all perceived and actual conflicts of interest.” While he remains a non-executive director at petroleum explorer Strike Energy Ltd., he said he won't attend board meetings or vote while he's on the Covid-19 committee.

A recent study by the Climate Council identified a A$50 billion investment opportunity if Australia fast-tracks its pipeline of clean energy projects.

Morrison's conservative government will be reluctant to cut its strong ties to the resources sector and commit whole-heartedly to de-carbonization, even after one of the worst wildfire seasons on record brought climate change to the fore in one of the world's biggest per-capita polluters.

“The prime minister has handed the steering wheel for our economic recovery to Nev Power, who has a significant interest in promoting the expansion of polluting gas,” Lucy Manne, chief executive of climate-change lobbyists 350 Australia, said in a statement on Wednesday. “Morrison has established an opaque and unaccountable body with deep links to the fossil fuel industry, and Nev Power and the Covid-19 Commission have serious questions to answer regarding perceived conflicts of interest.”

The government may find itself increasingly out of step with the rest of the world -- a recent survey led by Nobel laureate Joseph Stiglitz showed strong support among policymakers globally for climate-friendly measures to lead the post-Covid recovery. That movement is being led by the European Union. The region is pushing through a Green Deal strategy that will set out more ambitious targets for greenhouse gas emissions, despite attempts to slow its progress by member states more reliant on fossil fuels.

The commission has spoken with more than 1,000 individuals and organizations, Power told the hearing on Thursday.

“The commissioners and I were appointed by the government for our wide range of expertise, experience and networks that have allowed us to connect business-to-business and business-to-government, and to mobilize efforts across public, private and jurisdictional lines,” he said.