The specifics of the material difference between the WCA's stance on climate change and BHP's remains unclear, although there are clues in recent disagreements. Tensions arose between the two organisations due to WCA’s call for Australia to drop its clean energy targets. The WCA had instead promoted the use of lower emission coal it and is a big advocate for technologies such as carbon capture and storage (CCS). “We recognise that the use of coal has environmental consequences, but the technologies exist to address these,” the WCA states.
The Industry Association Review took into account aspects beyond the WCA’s position on climate change, evaluating the direct benefit of membership for BHP. The MCA has continued to advocate for greater use of coal in Australia’s energy mix, despite BHP’s threats of leaving if the MCA cannot become technology-neutral. But the benefits of its membership were rated as high, unlike those of the WCA.
“BHP identified a range of broader benefits provided by its membership of the MCA, relating to health and safety, environment, community, workforce and economics,” BHP’s industry report stated. “BHP continues to assess the benefits of membership in these areas as high.”
Thus, BHP’s decision to leave may be seen as more complicated than simply a criticism of the WCA’s approach to climate change. “BHP acknowledges the contribution made by the WCA in a range of areas, including environment and community practice, and appreciates the constructive approach undertaken by the WCA in discussions following the review,” BHP noted in its report.
BHP leaving the WCA raises questions about the relevance of coal lobbying groups today. As exploration companies drive towards lower emissions, is promoting CCS enough?
Environmental groups and NGOs have responded positively to BHP’s move, but many believe it is not enough, particularly given its continued commitment to the US Chamber of Commerce and the MCA. “While we welcome BHP’s formal withdrawal from the World Coal Association, it is nowhere near enough to wash off the stink of the company’s support for other organisations whose activities undermine the Paris Agreement,” Australian Centre for Corporate Responsibility executive director Brynn O’Brien said.
The WCA will undoubtedly continue to play an important role within the coal industry however, and recently, Russia’s leading coal producer SUEK joined. “We will continue our important work representing many of the world’s largest coal producers and allied companies and organisations, who are committed to working with us on a low-emission future for coal,” said Sporton.