FOSSIL FUEL MODEL OF ENERGY SECURITY IS BROKEN AND LEAVES AUSTRALIA EXPOSED: NEW REPORT

A new report reveals Australia is one of the most exposed countries in the Indo-Pacific under a fossil fuel-based energy security model, yet has the most to gain in a shift to a renewable energy model.

WWF-Australia’s report, The New Energy Security, analyses the energy security of major economies in the Indo‑Pacific in the wake of the current fuel crisis.

The analysis by Cyan Ventures found Australia to be highly vulnerable under a fossil fuel model due to its high consumption of fossil fuels, thin liquid fuel reserves and reliance on imported oil.

China is the least exposed due to its large stockpile of reserves and early action to reduce its reliance on fossil fuels and build resilience through clean energy systems.

Other countries like South Korea are now following suit.

The report argues the fossil fuel model of energy security is broken and a model based on renewable energy partnerships must be built in its place.

“The idea that we can drill our way to energy security and independence is increasingly wrong,” said Rob Law, WWF-Australia’s Senior Manager, Energy Transition.

“Fossil fuel expansion makes countries more exposed to global shocks and geopolitical risk, not less.

“We already produce more coal and gas than we need domestically, yet we were still rocked when global gas prices went up due to the war in Ukraine.

“Renewables change the equation. They are not tied to global price spikes, can be adopted quickly, and are more resilient to natural disasters and conflict.”

Australia risks being left behind

The report warns Australia cannot afford to take a passive or isolated approach to what is happening in the region, as Indo‑Pacific economies rapidly restructure their energy systems to reduce fossil fuel dependence.

South Korea illustrates this shift.

Korea’s leadership has framed the current fuel crisis as an opportunity to accelerate the transition to renewable energy, alongside its previous commitment to phase out coal-fired power.

“While much public debate assumes Asia will continue to rely on Australian fossil fuels for security, countries across the region are actively shifting toward renewables and electrification to protect their economies from future energy crises,” said Camille Malbrain, WWF-Australia’s Renewable Exports Manager.

“Our neighbours are not debating whether to move beyond fossil fuels. They are deciding how fast and with whom.

“Australia risks becoming associated with an expiring energy model unless it urgently repositions itself.”

A future made with Australia

The report shows Australia is one of the countries with the most to gain in a shift to a renewables-based energy security model.

Australia has all the ingredients - renewable resources, critical minerals, proximity to Asian markets, technical capabilities, institutional capacity, strong established relationships and diplomatic platforms - to shift from being a fossil fuel supplier to a reliable renewable energy security partner.

Few other countries in the region hold all these advantages simultaneously.

The report calls on the Australian Government to treat renewable energy security as a core foreign policy priority by:

• Adopting a whole‑of‑government renewable energy security strategy.
• Advancing decarbonisation deals and renewable partnerships with regional partners.
• Turning energy security cooperation into real investment and delivery.

The report proposes a “Future Made with Australia” approach, positioning Australia as a partner in building resilient, clean energy systems across the Indo‑Pacific.

“A strategy built with our neighbours, not just for Australian gain, will be far more credible, durable and aligned with the energy security challenges the region is facing,” said Ms Malbrain.

“Australia cannot keep reaching for the same fossil fuel levers, while partner countries quietly accelerate their transitions and build the supply chains of the future without us.”