Judi Moylan (Pearce, Liberal Party) Share this | Hansard source

I welcome the opportunity to conclude my presentation on the Renewable Energy (Electricity) Amendment Bill 2006. As I said, amongst the benefits of the changes brought about by this amendment, more householders will be able to participate in the scheme through changes that allow more eligible solar hot-water heaters—and I think that move should be universally welcomed. Under the scheme, accredited renewable energy generators can create one tradeable renewable energy certificate for each megawatt hour of energy they produce. The measure creates an incentive for electricity retailers and large users to purchase these certificates and surrender them to demonstrate their compliance.

According to the second reading speech and the explanatory memorandum to the bill, the government’s projections are aimed at achieving 9,500 gigawatt-hour targets, which would bring the renewable share of electricity consumption in 2010 to around 11 per cent. This would result in carbon dioxide equivalent abatement of about 6.6 million tonnes per annum or about 10 per cent of the current projected abatement for the Kyoto commitment period 2008-12. As I said earlier, there have been several reviews in relation to renewable energy. The 2003 review of the act made recommendations to enhance market transparency and to improve business certainty. As a result of that review, the government also agreed to increase opportunities for bioenergy and solar technologies, encouraging greater innovation.

Concerns have been raised about driving renewable energy expertise away from Australia due to these changes. However, I believe that the government has a very delicate balancing act to perform—that is, establishing an effective mandated renewable energy target without creating distortions in the market and ensuring that incentives are targeted to the most appropriate forms of renewable energy development.

The bill, I think, reflects the majority of the recommendations of the Senate Environment, Communications, Information Technology and the Arts Legislation Committee, providing a package of amendments that will improve the operation of the mandatory renewable energy targets. The changes are a result of expensive consultations, which have gone on since 2002, and an independent review in 2003. I think the government is demonstrating that it is committed to making sure that it is approaching the energy environment issue in a multifaceted way, as any responsible government ought to. (Quorum formed)

I was interested in the previous speaker, the member for Batman, who talked about the importance of building design and energy efficiency. On those issues, I agree with him. I think, though, that what we must realise is that, certainly in building design and energy efficiency, state governments have a very important role to play, and I think that some responsibility must be sheeted home to state governments to make sure that the architecture and the design concepts of buildings within their jurisdictions and within the local government jurisdictions are rightly overseen by them.

In summary, this government has taken a number of very important measures. As I said before, the first is the establishment of the Australian Greenhouse Office; the second, which is the subject of this bill, is the introduction of mandated renewable energy targets; and the third is the initiation of the Asia-Pacific Partnership on Clean Development and Climate. In conclusion, the AP6 partners cover most of the world’s manufacturing capacity for electrical appliances, from light bulbs to air conditioners and televisions. Energy efficiency improvements of these appliances made by the AP6 partner countries can drive rapid global improvements in energy efficiency. They are improvements that will reduce energy demands and costs and associated greenhouse gas emissions worldwide. I remind the House that, as a key negotiator at the Montreal meeting, Australia played a very important role in forging this new international collaboration.

The AP6 is a model of cooperation and practical action involving both developed and developing countries as equal partners that will play a major role in helping the world find a solution to human induced climate change. I think the bill before us today makes some sensible amendments, gives some flexibility and reflects the concerns of a very good Senate majority report and recommendations. I commend the bill to the House.

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