Zali Steggall (Warringah, Independent) Share this | Hansard source

Last year Australia signed the Global Methane Pledge: to cut 30 per cent of methane emissions by 2030. The International Energy Agency found fossil fuel companies in Australia are emitting about twice the methane that the government reports to the UNFCCC. We know from the report that was just released by the UN IPCC that the window of time to reduce emissions is closing and we must act with urgency. Not only are we losing our resources through these methane emissions but we're risking energy supply and cooking the planet, as methane is over 80 times more potent than carbon dioxide over the first 20-year period. If we were in a drought and had a leaking tap we would fix it, not open a new well. So it's time the government put in some gas leakage restrictions.

The safeguard mechanism reforms are an important opportunity for the government to bring in sensible measures for capturing and using that gas. The effectiveness of the safeguard mechanism will depend on the accuracy of the data it is based on, but the current reporting framework is too lax to ensure accuracy. Most oil and gas activities report based on national averages rather than actuals, and this needs to change. I've proposed amendments to ensure that Australian facilities adopt international best practice to ensure that we address this problem. I'm also proposing an amendment to cap fugitive emissions from coal and gas facilities within the safeguard mechanism.

This is an opportune moment to address energy sector methane emissions. If we don't get this right, we will lose the economic opportunities, with capital, workers and investment flowing to other jurisdictions such as the US, since their passing of the Inflation Reduction Act, and the EU, who are passing commensurate legislation as well. Australia will be penalised when trying to export goods. The European Union's Carbon Border Adjustment Mechanism will come into force in October this year, penalising carbon-intensive Australian exports. Australia's largest gas importer, Japan, has indicated it will preference low-emission gas.

In the context of this debate in relation to the safeguard mechanism, there are important amendments before the government, and I urge the government to come to the table and pass those sensible amendments. It is incredibly important at this time, with such a dire warning from the IPCC, that we establish a cap on gross emissions, that the government accept amendments and recognises the principle that gross emissions need to come down from this point, and that we set up a hierarchy of emissions reduction to ensure that the market and facilities prioritise on-site abatement, offset projects and then purchase offsets. We absolutely can do better.

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