Key global insights
Minister Ros Bates has successfully completed a trade mission to Japan and South Korea, focusing on enhancing export opportunities and attracting investment to Queensland. The mission included over 25 meetings with key industry partners across various sectors such as resources, renewables, and agriculture. Queensland's significant export figures to these markets underscore the importance of these relationships for the state's economy. Minister Bates expressed confidence in future investment outcomes as a result of these engagements.
Geopolitical shifts are reshaping global energy logistics, particularly the transportation of Russian oil to Europe. It highlights the emerging significance of Kazakhstan and Azerbaijan as key players in oil transit routes, especially through the (Baku–Tbilisi–Ceyhan pipeline) BTC pipeline. These countries may benefit from increased transit revenues and stronger strategic partnerships but face significant challenges including logistical complexities and environmental concerns.
The breakdown of the traditional correlation between Middle East conflict risks and oil prices, highlights a well-supplied market and shifting demand dynamics, particularly from China. It underscores the geopolitical shifts towards Asia for energy exports andthe fragmentation of the Middle Eastern economy. Additionally, it outlines the implications for trade and investment flows, particularly in the Southern trade relations.
In his early presidency, Prabowo Subianto has initiated significant foreign policy shifts, notably engaging with China and Russia, which has sparked debate regarding Indonesia's stance on the South China Sea. Despite concerns over potential alignments. Indonesia maintains a commitment to a non-aligned foreign policy. Prabowo's outreach aims to position Indonesia as a key player in the Global South, balancing domestic and international expectations amid rising geopolitical tensions.
President-elect Trump's anticipated foreign policy such as globe tariffs and returning businesses back to the U.S., emphases the incoming presidents focus on short-term benefits over long-term alliances. It suggests that Asian countries should proactively engage with the U.S. to address trade barriers and foster positive relations. The potential for digital free trade agreements and tariff reductions is highlighted as a means to improve trade dynamics.
Queensland is advancing its green hydrogen industry with a $200 million investment from Japan's ENEOS to build a methylcyclohexane (MCH) production facility at Bulwer Island. Scheduled to begin production by mid-2025 and produce up to 680 kilograms of green hydrogen daily by 2026, the project will create over 100 specialist jobs. Supported by Japan's Green Innovation Fund and involving partnerships with Japanese and Brisbane-based companies, the initiative aims to export MCH to Japan, bolstering international trade ties and reinforcing Queensland's status as a global energy leader in sustainable solutions.
Three Queensland projects have secured $9.5 million in federal grants to enhance critical mineral processing plans. Notable allocations include over $3.8 million for Vecco Group and $3 million for Graphinex's battery anode operation in Townsville. These investments are positioned to bolster Queensland's role in the critical minerals market and support the growing demand for sustainable energy solutions.
Featured insights
CSIRO GenCost Report, Coalition Nuclear Costings Released
- The CSIRO has published its draft GenCost 2024-25 report.
- The CSIRO found solar and wind remain the most cost-effective electricity generation options.
- Capital costs for solar and battery storage have decreased, whereas wind and gas have slightly inclined.
- The report found that even with its longer lifespan, nuclear energy is up to twice as expensive as renewables.
- The Federal Opposition has released modelling suggesting its plan to build nuclear reactors could lower electricity prices by 44% compared to Labor’s plan.
- However, the Coalition’s modelling is based on assumptions of significantly lower demand for energy by 2050.
South Korean President Impeached
- South Korean President Yoon Suk Yeol, declared Marshal law on 3 December was called then retracted after widespread protests.
- The President was suspended after the National Assembly passed an impeachment bill.
- This turmoil saw both stock prices (2.8%) and Korean currency (0.9%) fall.
- With South Korea strong investment ($29.3 billion, 2023) and relationship with Australia, this political uncertainty may present challenges for Queensland’s advanced manufacturing and semiconductors sectors.
- Queensland has exported $15 billion worth of goods to South Korea over the past year, with the majority consisting of coal, gas and beef.
Long-standing Syrian government has fallen
- After more than a decade long fight, Syrian rebels have taken control of the country, ousting President Bashar al'Assad’s regime.
- Russia had heavily backed Assad (providing arms and equipment and establishing bases and Mediterranean Sea access), in a strategic move to widen Moscow’s geopolitical influence.
- Syria’s future Government is unclear, with a complicated patchwork of factions jockeying for position.
- The fall of the regime against the backdrop of the ongoing Ukranian war is a blow towards Moscow’s ambitions for great power status.
- The fall of the Syrian regime comes after a year of conflict in the Middle East, with the Israel-Gaza conflict continuing into its second year and spreading into Lebanon and Iran.
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