Letter from Britain: The Problem with Australian Cows

Australia is getting namechecked a lot more than usual in Britain’s media these days – and it’s not just because “Neighbours” is making a comeback.

We are said to be at the dawn of a new age of UK-Australian relations thanks to the AUKUS defence pact and the new UK-Australia free trade deal, both of which are touted by supporters as auguring a lovefest of commerce- and knowledge-exchanging ties.

Stephen Smith, the new Australian high commissioner in London, is all for building on these agreements. But he has a new twist: he has been telling interviewers that he wants Britain to show Australia what it knows about renewable energy and the fight against climate change.

The idea is that Australia has been behind the curve in transitioning to renewables as it aims to reach net zero emissions by 2050. Britain. Smith reckons, is way ahead.

Cumbria Coal Mine

Some British climate activists might be a bit surprised that Australia is looking to Britain for guidance, given the recent row about the Conservative government’s opening of a coal mine in Cumbria, the first new mine in three decades.

UK government policy is also to build or upgrade its nuclear power facilities. Nuclear, though arguably clean, is not classified as renewable and, as Smith surely is aware, is certainly not on the Australian government’s agenda, even if the World Nuclear Association reckons it should be.

Friends of the Earth, meanwhile, are about to go to court to challenge the British government’s plans for reaching 40 per cent of the overall emissions savings by 2037. Inadequate, they say.

So, lesson No 1 for Mr Smith might be that transition is a bumpy road.

Record Wind Power

That said, the renewables share of electricity generation in the United Kingdom hit 41.4 per cent in the last quarter of 2022, largely due to wind and solar generation reaching new record highs. Wind hit a record high share of 24.6 per cent of all generation.

It should rise more after this week’s announcement by Britain and the Netherlands of a first-of-its-kind electricity link to connect offshore wind between them.

This puts Australia in the shade – or perhaps that should be in the lee. Australia’s wind generation was only a 9.9 per cent share in the comparative period (none from offshore) and the country is among the largest emitters of CO2 per person annually in the industrialised world.

Australia does better that Britain with solar, of course; a lot of your country has something called sun. But it still accounts for only around 15 per cent of total electricity generation.

So, Smith may be on to something in trying to pick up the pace and getting Australian businesses involved both for profit and emissions-reduction.

Some are already there. Recharge Industries, an Australian start-up, is taking over battery-maker Britishvolt, a move that revives hopes for a £3.8 billion “gigafactory” in northern England.

This follows last year’s purchase by Fortescue Metals of the battery and technology arm of the Williams Formula One racing team. The idea is that it will help the mining company hit its own 2030 net zero target.

Free Trade Furore

Both of these corporate moves came before what is supposed to be the main course – the coming into effect later this year of the UK-Australia Free Trade Agreement.

Designed to remove tariffs and harmonise rules, the pact is touted by the UK government as boosting the economy by £2.3 billion over the long-term, and by Australia as creating huge opportunities for agricultural and services sales to Britain.

Cheaper G&Ts

In one of the jolliest press releases of recent times, Britain’s Department of Trade announced at the end of last year, that the agreement will lop 5 per cent tariffs off British premium gin and tonics for Aussies. You’re welcome, mates, cheers.

Such boosterism from Britain’s government is not surprising. The architects of our departure from the European Union – most of whom are in government – promised that leaving our seamless £340 billion annual free trade market with the EU would be made up for by new, exciting deals such as this one.

But the agreement is not going altogether smoothly. Some of the bumps — please note, Mr Smith — being caused by Britain’s transition to net zero emissions.

It was embarrassing enough for the UK government when former UK environment secretary George Eustice, who helped negotiate the pact, said it was “not actually a very good deal for the UK”.

But a more salient challenge may come in court. Environmental campaigners Global Feedback are seeking a judicial review of the deal, arguing that it breaks the UK’s international environmental pledges.

It’s all about your cows. Apparently, their carbon footprint is 50 per cent higher per kilo than British beef. So, if we let yours in, we would be reversing our drive to cut emissions.

Welcome to London, Mr Smith.