The Economic Perspective 10 October 2025

The Latest Trending Economic News Curated for You by Balmoral Group Australia

Good morning dear readers,

Today's articles follow BGA's running theme of energy production, agriculture and climate change. First, a look at coal export markets as renewables slip ahead in terms of energy generation worldwide led by China and India. Export markets in East and Southeast Asia for Australian coal are thinning too as renewables become cheaper. Next, rising temperatures may pressure agricultural labour supply with tougher conditions and higher costs, suggesting climate adaptation is needed to maintain food security. Our final article is a press release from the Minister for the Environment and Water, Murray Watt, which demonstrates the conflict between biodiversity conservation and renewable energy rollout. Additionally, I’ve attached a comprehensive renewable energy map from Rainforest Reserves Australia below to support the discussion.

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Hope you enjoy the articles and have a great weekend!

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Global Renewable Power Surpasses Coal for the First Time 

In the first half of 2025 global renewable generation reached 5,072 TWh, overtaking coal’s 4,896 TWh, with most of the renewable expansion coming from China and India through wind and solar. Growth in renewables was able to keep pace with the 2.6% rise in global power demand. While fossil generation rose by approximately 13 and 15% in the US and Europe, respectively, other markets are increasingly turning to increasingly cheap solar, which are now beginning to undercut coal operating costs. However, policy makers should beware supply chain bottlenecks, policy uncertainty, and shortfall of storage and grid infrastructure, all of which could constrain deployment. Read more here.

Australian thermal coal producers are losing their growth markets 

Australian coal export demand has been driven primarily by China and Southeast Asia as demand has petered off in mature markets, such as Japan and South Korea. However, China’s demand for coal is expected to drop as their renewable capacity increases, and cheaper renewables and batteries are undermining coal demand across Southeast Asia. Read more here.   

Too hot to harvest: rising heat threatens farm labour and food security 

Heat stress can damage crops biophysically, but may also precipitate labour market shocks. Hotter conditions for agricultural workers will necessitate more protection, water and rest, and make work more difficult and dangerous. Farms were already struggling with labour constraints: young people flock to urban centres while farmers are aging, and seasonal work is becoming more reliant on policy-influenced overseas workers. CSIRO’s studies into the quantitative impacts of rising heat on labour efficiency show that operating costs will rise and labour will become scarce unless something is done. Read more here.  

Fast approval of NSW solar farm shows site selection matters 

A recent ministerial release highlights the conflict between biodiversity conservation and renewable capacity rollout. Government approved a solar farm and battery energy storage system (BESS) for construction on degraded farmland with little native vegetation. The project was approved in lightning speed, and government cites the proponent’s application on degraded land as the reason. Farmers generally approve of renewables as a new income stream helping to “drought proof” agriculture. However, the Australian Renewable Energy Map (see below) shows that wind and solar projects are going to occupy over 4400 sqkm, similar to the 4560 sqkm occupied by mining. We’ll know more once the EPBC Act biodiversity reforms are released. Read more here.

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The Australian Renewable Energy Map

This map by Rainforest Reserves Australia compiles all of Australia’s renewable energy projects in one place, showing project footprints across all types of renewables, including transmission lines and unknown footprints.

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