Powering Victoria beyond coal

Coal and gas are the leading causes of the climate crisis.

But right now Victoria still gets two thirds of its electricity from mining and burning coal, and the Victorian Labor Government has no plan to move our state beyond coal and gas.

For decades, coal mining and electricity generation in the Latrobe Valley has powered Victoria. Unfortunately, it’s also been fuelling the climate crisis.

Victoria needs to replace coal with 100% renewable energy by 2030, and the Latrobe Valley community deserves an honest conversation about coal closure and future economic opportunities for their region. 

In recent years, Victoria has made some progress on building new renewable energy and storage, but we need to be going a lot further and faster. Victoria is lagging behind other states and countries and we need to do more to meet our global obligation to phase out coal by 2030 and limit warming to 1.5 degrees. 

The good news is that a big build of renewable energy for a 100% renewable Victoria will create more than 50,000 new jobs and help every household save on their energy bills.

The Greens' plan for a coal-free, 100% renewable Victoria includes:

1. A legislated end date of 2030 for coal mining in Victoria with a timeline of coal plant closure between now and then.

2. Increasing Victoria’s legislated renewable energy target to 100% by 2030, supported by $10 billion in new renewable energy generation, storage, and grid upgrades.

3. A job-for-job guarantee for coal workers and secure funding for the Independent Latrobe Valley Authority to oversee planned and orderly coal closure and the development of new industries for the region, such as offshore wind, clean manufacturing and mine site rehabilitation.  

Further information about our plan:

1. Ending coal by 2030

Burning coal for electricity remains Victoria’s biggest source of climate pollution. 70% of Victoria’s electricity comes from 3 coal-burning power stations in the Latrobe Valley, yet the Victorian Labor Government has no plan to move beyond coal.

The United Nations, global scientists and environment groups make it clear that tackling the climate crisis requires states like Victoria to close all coal power stations by 2030. But right now Victoria’s coal plants are licensed by Labor to operate as late as 2048. 

The writing is on the wall for Victoria’s coal plants. They’re old, unreliable and spew toxic pollution that is harming the health of local communities. 

Planned coal transition

It’s vital for governments to take a lead role in planning the orderly replacement of coal with renewables, instead of leaving these critical decisions to billionaire-owned power companies.

That’s why the Greens have developed a timeline for Victoria’s coal plants to close between now and 2030, giving communities advance notice and support to invest in new industries and jobs well before 2030. 

Closure dates for Victorian coal plants

Stopping toxic coal pollution

Victoria’s power stations are Australia’s dirtiest, and some of the dirtiest in the world. They spew out huge quantities of toxic sulphur, mercury, nitrogen and particle pollution, all of which harm the health of the local community.

The Greens' plan also requires power stations to introduce clean technologies for the remainder of their operating life, to stop toxic pollution and protect the health and well-being of the Latrobe Valley community.

2. Powering Victoria with 100% renewable energy

Over the past four years, the Victorian Greens have successfully pushed Labor to build more renewable energy. But we are still lagging behind other states and what climate science demands.

Right now Victoria gets around 30% of its energy from renewable sources, but we can and must be aiming for 100%.

The Greens plan legislates a 100% renewable energy target for Victoria by 2030, and includes a mega $10 billion investment to drive 100% renewable energy. Our plan supports:

• Large offshore wind developments capable of replacing entire coal plants. 
• Solar and wind farms across the state, including community and First Nations led projects where benefits are returned to local communities.
• Expanding solar for homes, businesses and public buildings.
• New big-battery and pumped hydro storage projects, including publicly-owned storage, to ensure Victorians control our own energy security and aren’t at the mercy of big corporations.
• Retrofitting large energy users in our grid (like the Portland aluminium smelter) so they can increase and decrease their power usage and help stabilise energy demand across our grid.
• Household batteries, microgrids and neighbourhood batteries to store more locally-generated energy close to where it is made and used. 
• Upgrading and expanding our transmission and distribution networks (the poles and wires that move energy around) to create a stable energy system fit for the 21st century.

The Greens also support an emissions reduction target of 80% by 2030 and net zero by 2035 or sooner.

Getting to 100% renewable energy is a big job, but it’s absolutely possible. The technology exists and the Greens have a plan.

The Greens in Parliament are pushing the government to go further in tackling the climate crisis, ending coal and gas and creating a 100% renewable Victoria. In doing so, we can also create tens of thousands of new jobs, reduce energy bills and bring power back into public hands. 

3. Supporting the Latrobe Valley community to a new future beyond coal

Victoria needs to replace coal with renewable energy, but we can’t abandon the workers and communities who have powered our state for generations.

Without a plan, coal workers and the Latrobe Valley community are at the mercy of corporate boardrooms and coal billionaires, who will abandon them when coal is no longer profitable.

The Greens’ plan for a fair transition for the Latrobe valley includes:

1. A job-for-job guarantee for Victoria’s coal workers in the Latrobe Valley, costed by the Parliamentary Budget Office.
2. A revamped Latrobe Valley Authority with new and guaranteed funding of $48 million/year until 2035 to oversee the transformation of the Latrobe Valley beyond coal.

Job-for-job guarantee for coal workers

The Greens’ plan for a fair transition beyond coal includes a job-for-job guarantee for coal workers in the Latrobe Valley that will guarantee new employment at existing pay rates where workers shift out of the coal industry.

The guarantee would operate for ten years from leaving employment, while workers over 55 who choose to retire instead of continuing work will have the option to receive an equivalent income until they reach pension age. Businesses outside of the coal, oil and gas sector who hire a former coal worker would be eligible for a wage subsidy equal to 50 per cent of a full-time worker in the coal mining sector. The employee must be working in Victoria and receive a wage at least equal to the amount they received in their previous coal job for the employer to be eligible for the wage subsidy.

If an employee is unable to find a job that attracts the wage guarantee, they can claim the amount directly from the Victorian Government.

An independent and fully-funded Latrobe Valley Authority

It’s not just mining and power station workers left in the cold when coal plants close without notice - the whole of the surrounding community is also affected. That’s why the Greens’ plan for a fair transition beyond coal also includes looking after the future of the entire Latrobe Valley region.

Our plan would see the Latrobe Valley Authority become independent and granted secure and ongoing funding to 2035. While this Authority was created in the wake of Hazelwood power station closure under pressure from the community and Greens, Labor has failed to give it the power or funding to plan for coal replacement or oversee the development of new economic opportunities.

The Greens’ plan would legislate the Latrobe Valley Authority as independent, provide long-term funding, and give it the broad functions needed to plan for the staged and orderly retirement of Victoria’s coal power stations by 2030 and capture a new economic future for the region. Opportunities include developing an Offshore Wind Centre of Excellence, establishing a workforce training centre to build Victoria’s renewable and electrification workforce, pioneering world leading mine rehabilitation and attracting clean manufacturing jobs to the region.

Paying for our plans

The Greens’ fully costed plan to move Victoria beyond coal, support workers and power our state with 100% renewable energy includes the following:

• $10 billion to build new renewables storage by 2030, $4 billion of this in the forward estimates. This includes large-scale storage, retrofitting large energy users to increase and decrease their usage to help stabilise energy demand, grid upgrades, solar gardens, neighbourhood batteries, micro-grids, solar and batteries for public housing, grants for First Nations people to build renewable energy enterprises and establishment costs for Power Victoria.
• $576 million in secure funding between 2023-2035 for an independent Latrobe Valley Authority to oversee coal closure and the development of a new economic future for the region
• A job-for-job guarantee for coal workers as Victoria’s 3 coal plants close between 2024 and 2030. 

The Greens will make the big banks, property developers and the gambling industry pay their fair share of tax so we can invest in climate action, affordable housing and public services for all. We’ll immediately double royalties on coal, oil and gas corporations before they close. Our plans will also be paid for by spending smarter and making our state borrowings work for the community.

Read our Bill to transition off coal here