Regional cities at risk of unsustainable growth
Thousands of urban Australians have chosen to decamp to regional cities and towns since Covid-19, and without proper planning we will simply transfer issues such as housing affordability from larger cities to smaller towns, according to a New South Wales researcher.
“Our major cities continue to offer a broader range of employment opportunities, which means they will continue to attract new residents. So, it’s unlikely smaller regional areas can substantially ease pressures for major cities, at least in the short-term,” Dr Laura Crommelin from the University of New South Wales says.
This is especially the case in some coastal regions which have attracted swathes of sea-changers who are able to work professional jobs on a remote basis. This has placed upwards pressure on rental prices in these towns, and housing supply is also threatened by rising numbers of short-terms rentals from Airbnb.
Dr Crommelin said policymakers should focus on creating job and education opportunities in regional towns and in university campuses, and to build appropriate housing stock and transport options to help residents commute to major cities.
“Most importantly, growth needs careful management to ensure if regional Australia areas scale up, they maintain the overarching sense of community that make these areas appealing in the first place,” Dr Crommelin said.
She is participating in an upcoming Australian Housing and Urban Research institute project entitled Disruptions in regional housing: Policy responses for more resilient markets.
Digital by default
The Reserve Bank of Australia is not the only one concerned with Australia’s flagging productivity performance. Consult Australia said in a new report Digital by Default that the country risks missing an opportunity to be a world leader in digital technology in infrastructure and construction if it fails to adopt a nationally coordinated approach.
A recent report from Australian Constructors Association put the opportunity cost from a 30-year period of relatively weak productivity performance at roughly $35 billion. Consult Australia thinks the government needs to sharpen the digital pencils of the industry to have any chance of delivering on the $120 billion year rolling infrastructure pipeline.
Digital tools that could stimulate productivity include a Building Information Modelling Knowledge and skills toolkit and digitised design processes throughout project lifecycles to reduce whole of life emissions and help the economy reach its net zero targets. The construction and operation of physical infrastructure assets directly accounts for 15 per cent of Australia’s annual emissions.
Coal asset owners face financing hurdles
Coal mines and power stations are becoming increasingly difficult to finance or sell, with investors torn between divesting and remaining to manage the transition, according to research from the Anthropocene Fixed Income Institute.
Electricity is the major contributor to CO2 emissions in the ASEAN region, with coal accounting for 44 per cent of the energy mix. The energy crisis stemming from the Ukraine-Russia war has boosted demand for Asian coal, pushed prices upwards and this has fed through into appreciating asset prices.
The short-term value boost has provided an incentive for investors to hold coal assets and prolong their life to maximise profit, the report found. However, there is mounting evidence to indicate that coal assets are becoming more difficult to finance, with recent Wood Mackenzie research finding that some projects are being financed at interest rates of up to 20 per cent.
BHP struggled to find a buyer for the New South Wales Energy Coal thermal coal unit, and decided to keep running the asset until 2030 before rehabilitating it. Meanwhile, Singaporean energy group Sembcorp was forced to stump up financing for potential buyers of its coal assets because none were willing to finance the transaction. In South Korea, KEPCO is planning to divest all of its overseas coal assets by 2030.
Queensland sets aside $19 billion for renewable energy in budget
The Palaszczuk government has announced an investment of $19 billion over four years for new wind, solar storage and electricity transmission investment in its 2023-24 budget handed down on Tuesday.
The spending blitz includes $5.5 billion in capital investment in state-owned energy companies including PowerCo, Powerlink and Stanwell Corporation.
The government reiterated its commitment to 100 per cent ownership of Queensland’s electricity transmission and distribution networks, and said that this would extend to any new pumped hydro and battery storage assets it invests in.
Powerlink will invest $594 million into the CopperString 2032 high voltage transmission link in 2023-24 and $194 million to connect large renewable energy projects to the grid including the 2 GW Borumba pumped hydro energy storage project and the 1 GW MacIntyre Wind Precinct in the state’s south-east.
Call out for entries in Victorian Premier’s sustainability awards
Sustainability Victoria has opened the Premier’s Sustainability Awards for entries.
Now in their 21st year, the awards are split into categories that align with the United Nations Sustainable Development Goals (UN SDGs). The categories are community champion, industry leader, circular economy innovation, future energy, healthy and fair society, sustainable places, thriving environment and waste and recycling solutions.
From these categories two overall award winners will be selected for The Premier’s Recognition Award and The Premier’s Regional Recognition Award – which will be drawn from regionally-based qualifying finalists.
Entries for the awards close on Friday 30 June at 5pm.
The judging panel will be composed of a range of independent environmental experts with considerable industry experience.