Martin Ferguson (Batman, Australian Labor Party, Minister for Resources and Energy) Share this | Hansard source

I thank the member for Bass for the question because she, like many in this House coming from Tasmania, understands the importance of energy transformation in Australia. I say that because, coming from northern Tasmania, she comes from a state which has historically made a major contribution to the renewable energy market in Australia—historically Hydro Tasmania and in more recent times the development of wind energy through the assistance of Roaring 40s. That is why the Clean Energy Initiative of the government is very important. It is about building the energy infrastructure of tomorrow. That is exceptionally important to Australia at the moment because it is about not only energy security but also putting in place the necessary investment to enable Australia to achieve its ambitious targets to reduce carbon emissions.

On that note, it is an absolute priority for Australia to front up to the need to make a complete transformation of energy technology as we know it. That is not just about our traditional reliance on coal-fired power stations; it is also about bringing through new investment in areas such as renewable energy, aided and assisted by the implementation of a renewable energy target of 20 per cent by 2020 and in association with finalising the debate—which goes to investment security in Australia, something that is expected by the private sector—with respect to putting a price on carbon. Hence the importance of resolving, this year, the debate concerning the Carbon Pollution Reduction Scheme because it actually finalises an investment horizon which enables us to achieve energy security in the 21st century.

This energy security debate, in association with our Clean Energy Initiative, is very central to the debate with respect to jobs. We are talking about an investment of $4.5 billion but, through a new partnership with the private sector and state governments, we will be able to leverage over $10 billion in Australia. This initiative will make a further major contribution to the issue of job creation as we go through this global financial crisis.

It is about nation building for recovery. In the context of carbon capture and storage, we are talking about a $2.4 billion investment which is going to bring substantial investment by the private sector and state governments in resolving what is all important to Australia both from an energy security point of view and from an export point of view, as we are a major exporter of coal. Carbon capture and storage is a must for Australia. It is very important both from an energy security point of view and from the point of view of reducing our carbon emissions. Our carbon capture initiatives are a world first. We have already put in place offshore storage capacity—world-first legislation—and we are now in the process of considering commercial investment in that offshore storage capacity.

The new part of the investment strategy, as embodied in our Clean Energy Initiative, of this budget goes also to a world first in terms of solar technology. We have placed on the table, for consideration by state and territory governments in association with the private sector an investment of $1.6 billion to be invested in large-scale power generation in a solar flagships program. The target of 1,000 megawatts of solar power represents three times the size of the largest solar energy project in the world today. It means that potentially we in Australia will put in place in the foreseeable future four individual power generation projects, solar thermal, in association with the further development of solar photovoltaic opportunities in Australia—important from a base load point of view. In association with our focus on solar energy, we are looking at other renewable sources, such as geothermal, wave and biomass. Renewables Australia represents an overall investment of $465 million to support leading-edge technology research, development and demonstration projects.

In conclusion, the Australian community expects this investment horizon. The key to any economy is energy security, and in order to maintain energy security in Australia in the 21st century we have to appropriately focus on the transformation of energy technology to achieve a reduction in carbon emissions. The nation building for recovery program of the government will enable us to build the energy infrastructure of tomorrow and in doing so not only ensure energy security but also lower emissions and, importantly, assist in job creation in a very difficult economic circumstance.

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