Submission: Supplementary evidence – Inquiry into the role of Western Australia in the global effort on decarbonisation

2 December 2025

To: ECONOMICS AND INDUSTRY STANDING COMMITTEE 
Re: Inquiry into the role of Western Australia in the global effort on decarbonisation – Supplementary evidence 
 

Thank you for the opportunity for the Institute for Energy Economics and Financial Analysis (IEEFA) to provide supplementary evidence to the inquiry following my public hearing.

IEEFA is an independent energy finance think tank that examines issues related to energy markets, trends and policies. The Institute’s mission is to accelerate the transition to a diverse, sustainable and profitable energy economy.

In this supplementary evidence, we provide additional references and evidence supporting a range of points made during the hearing:

• Global LNG markets are heading towards a supply glut, based on an unprecedented addition of new capacity while demand growth is uncertain; this will be challenging for Australia’s high-cost LNG.
• LNG does not support global decarbonisation: gas is no longer considered a transition fuel; a shift from coal to gas requires costs below LNG’s cost of production; LNG could displace renewables more than it displaces coal; no new LNG capacity is required under Paris-aligned scenarios.
• Carbon capture and storage (CCS) presents high performance and cost risks.
• Green iron is often considered to be the largest economic opportunity for Australia in a decarbonising world; major opportunities are in clean heavy industry (especially metals and fuels) and minerals needed for the new energy economy.
• Recent insights from the Australian and global green iron and steel transition.

Kind regards,

Amandine Denis-Ryan
Chief executive, IEEFA Australia