Kate Chaney (Curtin, Independent) Share this | Hansard source

I thank the member for Warringah for the opportunity to second this important motion, which you will see is actually about fossil fuels and the role of methane in the fossil fuel industry rather than the agricultural industry. The effort Australia makes to address methane emissions in the next few years will have a substantial impact on how effective we are in meeting our decarbonisation goals, which is why it was such good news from COP27 that the Australian government has signed the Global Methane Pledge to cut methane emissions by 30 per cent by 2030. But, since that good news, we've heard almost nothing from the government about how it will actually fulfil this obligation, including no mention of methane emissions in the soon-to-be-debated safeguard mechanism.

Why are methane emissions are such an issue? Methane emissions are 80 times more potent than carbon dioxide over a 20-year period, and methane is responsible for about 30 per cent of the rise in global temperatures since the Industrial Revolution. In Australia, fossil fuel companies emit 40 per cent of the country's methane pollution, and much of that is avoidable. Two weeks ago the head of the International Energy Agency said methane cuts are among the cheapest options to limited near-term global warming. He said there is just no excuse for the continued in action, and there really is no excuse for the government to continue ignoring this problem. The IEA has shown that we could reduce 75 per cent of energy sector methane emissions using commercially competitive existing technology, and that currently wasted methane can be cost-effectively captured and used to generate electricity. Analysis from S&P Global shows that there's huge potential for methane to be captured from existing gas and oil facilities and brought to the market, countering the need for new gas exploration. Its analysis shows that two billion cubic metres of gas can be captured by limiting venting, flaring and leaks of methane at gas and oil sites in Australia. That would provide nearly a five per cent boost to Australia's gas supply annually, with no new fields being opened. This is more than double the ACCC's January forecasted shortfall in the east coast market.

Our trade competitors and partners are already acting on methane. Japan is working with PETRONAS to incorporate methane performance into its purchase of LNG from Malaysia. Italian company Eni is doing the same with Algerian supplier Sonatrach. The US, EU and other partners are working on standards to incorporate methane performance into gas supply agreements, and the same pressure will likely come to bear in Australia. We can be proactive or we can wait to be forced.

The Oil and Gas Methane Partnership framework has become the go-to standard for countries, buyers and investors who want assurance that the gas they're buying and the companies they're investing in and partnering with are serious about methane. To date, no major Australian company has joined, which is positioning the industry as out of step and unwilling to recognise that, as we transition away from fossil fuels, those left standing will be operators who can compete not only on cost but also on climate action.

Australia can seize the opportunity to cut methane by taking action in the safeguard mechanism reforms. Firstly, we need to accurately measure methane. We should update our methane reporting standards to require direct emissions measurement and statistically valid modelling at both the source and site levels. This should be consistent with international best practices such as that prescribed in the Oil and Gas Methane Partnership 2.0. This is essential, given that it's likely that Australian fossil fuel companies are drastically underreporting their current methane emissions. At the same time, the safeguard mechanism's baseline should reflect best practice methane emission intensities, which have been established globally by industry through dies such as the Oil and Gas Climate Initiative.

By not setting a best practice baseline on methane, we will be setting Australian industry up for future failure. We must ensure that methane that's currently wasted from fossil fuel sites is captured and brought to market. We need genuine abatement of this potential greenhouse gas using proven, existing, cost-effective technology rather than the unlimited use of offsets.

As drafted, the safeguard mechanism proposal could completely miss the opportunity for actual methane abatement. The safeguard mechanism reforms are a pivotal opportunity to get us on track to fulfill our global obligations under the methane pledge by requiring companies to measure and report their methane emissions while taking belated but critical action to cut methane pollution. (Time expired)

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