Australia's natural gas exports carry a "substantial risk" of crowding out renewables investment and slowing the adoption of cleaner energy, a confidential government report has found.
Since the federal government controversially approved a 40-year extension to the country's largest gas project, Labor at both the federal and state levels has continued to insist gas will play an important role in transitioning Australia and its partners to net-zero emissions.
But findings from a report commissioned by the WA Labor government undermine these justifications.
The report acknowledged gas could serve as a "bridge" from coal to cleaner energy sources in Asia, but said it was essential to address certain challenges.
"There are substantial risks that natural gas could crowd out investments in renewable technologies or delay the broader adoption of zero-emission energy systems," the leaked Deloitte report said.
"These risks must be carefully managed to ensure natural gas serves as a true bridge fuel rather than a long-term dependency that hinders progress toward decarbonisation goals."
Directing resources towards natural gas infrastructure and research could reduce the funding pool for renewable energy solutions, according to the report.
Long-lived natural gas infrastructure can also create a dependence on fossil fuels, delaying the energy transition, while low-carbon technologies will find it difficult to compete in a market abundant with cheap natural gas.
The report urges the WA government to be flexible and support the build-out of renewable energy systems.
Greenpeace Australia Pacific called on the WA government to learn into a "green economic future".
"WA gas is fuelling the climate crisis, and any claims made by the gas industry that suggest otherwise are nothing but a smokescreen to wring every dollar out of their stranded fossil fuel assets," head of climate and energy Joe Rafalowicz said.
"How many more reports will be buried before the government of Western Australia accepts the truth?"
Natural gas is WA's second-largest export earner and Australia's third-largest export behind coal and iron ore.
Asked why the report was not released publicly, WA Premier Roger Cook said it was used to guide government conversations and helped inform his recent trip to Japan, where he discussed decarbonisation.
"Works in Australia's gas will continue to be an important transition fuel for economies right across the world," he told reporters on Thursday.
"That's the message that is in that report. It's the message that we continue to promote."
The federal government in September approved an extension for Woodside's North West Shelf gas project in WA to 2070.
The carbon emissions emitted across its lifetime would be 13 times greater than Australia's total annual emissions, according to the Australian Conservation Foundation.
Federal Environment Minister Murray Watt has insisted the project would be required to reduce its emissions every year and reach net-zero greenhouse gas emissions by 2050.
