Sophie Scamps (Mackellar, Independent) Share this | Hansard source

by leave—I move amendments (1) to (9), as circulated in my name, together.

(1) Schedule 1, heading to Part 1, page 4 (line 2), omit "Export of carbon", substitute "Carbon".

(2) Schedule 1, page 4 (before line 4), before item 1, insert:

1A Subsection 4(1)

Insert:

applicable risk framework and guidelines means the following:

(a) the Risk assessment and management framework for CO2 sequestration in sub-seabed geological structures, in Annex 3 to Resolution LC/SG-CO2 1/7 adopted on 3 November 2006 by the Contracting Parties to the Protocol;

(b) the Specific guidelines for the assessment of carbon dioxide for disposal into sub-seabed geological formations, in Annex 8 to Resolution LC 34/15 adopted on 2 November 2012 by the Contracting Parties to the Protocol.

Note: These documents could in 2023 be viewed on the International Maritime Organization's website (https:// www.imo.org/en/).

Australia's greenhouse gas emissions reduction targets has the same meaning as in the Climate Change Act 2022.

fossil fuel facility means a facility that conducts one or more activities for the purpose of extracting, processing, supplying or exporting coal or petroleum (within the meaning of the Offshore Petroleum and Greenhouse Gas Storage Act 2006).

Kumming -Montreal Global Biodiversity Framework means the annex to the decision adopted by the Conference of the Parties to the Convention on Biological Diversity at Montreal on 19 December 2022.

Note: This Framework could in 2023 be viewed on the Convention on Biological Diversity's website (https://www.cbd.int/gbf/).

Paris agreement has the same meaning as in the Climate Change Act 2022.

1B After section 9

Insert:

10 Public money must not be used on carbon dioxide capture and storage projects

The Commonwealth must ensure that relevant money (within the meaning of the Public Governance, Performance and Accountability Act 2013) is not committed or expended on projects for:

(a) carbon dioxide capture; or

(b) the sequestration or storage of carbon dioxide streams;

where the carbon dioxide is, or is to be, captured from fossil fuel facilities.

(3) Schedule 1, item 1, page 4 (lines 4 to16), omit the item, substitute:

1 Section 10D

Repeal the section, substitute:

10D Export or import for the purpose of dumping or incineration

(1) A person commits an offence against this section if:

(a) the person:

(i) exports controlled material from Australia to another country; or

(ii) imports controlled material from another country to Australia; and

(b) the person does so:

(i) knowing that the controlled material will be dumped into the sea or incinerated at sea; or

(ii) reckless as to whether the controlled material will be dumped into the sea or incinerated at sea; and

(c) in the case where the controlled material is carbon dioxide streams from carbon dioxide capture processes for sequestration into a sub-seabed geological formation—the export or import of the material is not in accordance with a permit.

Note: A permit can only be granted if the carbon dioxide streams are not captured from fossil fuel facilities (see subsection 19(7B)).

(2) An offence against this section is punishable on conviction as follows:

(a) if it is proved that any of the offending material is carbon dioxide streams from carbon dioxide capture processes for sequestration into a sub-seabed geological formation—imprisonment for up to 10 years or a fine up to 363,637 penalty units, or both;

(b) if paragraph (a) does not apply but it is proved that any of the offending material is seriously harmful material—imprisonment for up to 10 years or a fine up to 2,000 penalty units, or both;

(c) if neither paragraph (a) nor (b) applies but it is proved that any of the offending material is not within Annex 1 to the Protocol—imprisonment for up to 2 years or a fine up to 500 penalty units, or both;

(d) in any other case—imprisonment for up to 1 year or a fine up to 250 penalty units, or both.

Note: In 2023, 363,637 penalty units was approximately $100 million.

(4) Schedule 1, item 2, page 4 (lines 19 to 27), omit subsection 15(2A), substitute:

(2A) Section 10C does not apply in relation to the loading of controlled material on a vessel, aircraft or platform in Australia or Australian waters if:

(a) the controlled material is carbon dioxide streams from carbon dioxide capture processes for sequestration into a sub-seabed geological formation; and

(b) the loading is for the purpose of:

(i) the export of the carbon dioxide streams from Australia to another country; or

(ii) the import of the carbon dioxide streams from another country to Australia; and

(c) there is a permit in force for that export or import.

Note: A permit can only be granted if the carbon dioxide streams are not captured from fossil fuel facilities (see subsection 19(7B)).

(5) Schedule 1, item 3, page 5 (lines 1 to 16), omit subsection 19(7B), substitute:

(7B) The Minister may only grant a permit for the export or import of controlled material for dumping, where the controlled material is carbon dioxide streams from carbon dioxide capture processes for sequestration into a sub-seabed geological formation, if:

(a) the carbon dioxide streams are not captured from fossil fuel facilities; and

(b) the other country to which the export or import relates is a Contracting Party to the Protocol; and

(c) there is an agreement or arrangement in force:

(i) between Australia and that other country; and

(ii) that includes the matters covered by paragraphs 2.1 and 2.2 (as appropriate) in the Annex to Resolution LP.3(4) adopted on 30 October 2009 by the Contracting Parties to the Protocol; and

(d) there is an agreement or arrangement in force:

(i) between the Commonwealth and each entity that is proposing to export or import the controlled material; and

(ii) under which each of those entities agrees to comply with the applicable risk framework and guidelines; and

(e) the grant of the permit would be in accordance with Annex 2 to the Protocol; and

(f) the Minister is satisfied:

(i) of the matters referred to in paragraphs 4.1, 4.2 and 4.3 of Annex 1 to the Protocol; and

(ii) that the other country to which the export or import relates has standards of environmental management, regulation and management at least as good as Australia's; and

(iii) that the grant of the permit would be consistent with Australia's obligations under the Paris Agreement, and consistent with the Kumming-Montreal Global Biodiversity Framework; and

(iv) that the grant of the permit would be consistent with Australia's greenhouse gas emissions reduction targets; and

(v) of any other matters the Minister considers relevant.

(6) Schedule 1, page 5 (after line 16), after item 3, insert:

3A After section 21

Insert:

22 Conditions imposed by this section in respect of permits for the export or import of certain carbon dioxide streams

(1) This section applies for each permit for the export or import of controlled material for dumping, where the controlled material is carbon dioxide streams from carbon dioxide capture processes for sequestration into a sub-seabed geological formation.

(2) A condition imposed in respect of the permit is that the holder of the permit must:

(a) monitor whether the export or import, or any act or omission relating to the sequestration, is likely to cause or result in any condition or damage of the kind set out in paragraph 16(1)(a), (b) or (c); and

(b) ensure the sequestration is maintained so that such a condition or such damage does not arise; and

(c) repair or remedy any such condition, or mitigate any such damage, as does arise.

(3) A condition imposed in respect of the permit is that the holder of the permit must, at all times while the permit is in force, maintain financial assurance sufficient to give the holder the capacity to meet costs, expenses and liabilities arising in connection with, or as a result of complying (or failing to comply) with:

(a) the condition imposed by subsection (2); or

(b) any other requirement under this Act or a legislative instrument under this Act, in relation to the export or the import or the sequestration.

(4) Without limiting subsection (3), the forms of financial assurance that may be maintained include one or more of the following:

(a) insurance;

(b) a bond;

(c) the deposit of an amount as security with a financial institution;

(d) an indemnity or other surety;

(e) a letter of credit from a financial institution;

(f) a mortgage.

(5) This section does not limit the conditions that may be imposed on the permit by the Minister under section 21. However, sections 21, 23 and 25 do not apply to a condition imposed by this section.

Note: Failure to comply with a condition imposed by this section, or by the Minister under section 21, is an offence (see section 36).

3B Subsection 36(2)

Repeal the subsection, substitute:

(2) An offence against this section is punishable on conviction as follows:

(a) if the condition is imposed by section 22—imprisonment for up to 10 years or a fine up to 363,637 penalty units, or both;

(b) otherwise—imprisonment for up to 1 year or a fine up to 250 penalty units, or both.

Note: In 2023, 363,637 penalty units was approximately $100 million.

(7) Schedule 1, item 4, page 5 (line 20), omit "export of controlled material from Australia", substitute "export or import of controlled material from or to Australia".

(8) Schedule 1, item 4, page 5 (lines 26 and 27), omit "export of controlled material from Australia", substitute "export or import of controlled material from or to Australia".

(9) Schedule 1, item 4, page 5 (after line 28), at the end of the item, add:

(4) Section 22 of the Environment Protection (Sea Dumping) Act 1981, as inserted by this Part, applies in relation to the export or import of controlled material from or to Australia on or after the commencement of this item

For reasons I have already outlined in this place, I do not support the Environment Protection (Sea Dumping) Amendment (Using New Technologies to Fight Climate Change) Bill. What is most alarming is that, without extensive amendments, this bill would create a pathway, whether intended or not, for new Australian gas mines to continue to open and old ones to be extended and expanded. This green light is based upon unproven and faulty technology: carbon, capture and storage. Carbon capture and storage has failed to meet expectations time and time again, including in Australia's enormous Gorgon gas field CCS project. The bill in its current form would enable fossil fuel facilities, like the colossal and highly polluting Barossa gas project, to proceed.

In an attempt to improve and strengthen this bill and to ensure it's not misused, as I have described, I'm proposing three categories of amendments. The first category is an attempt to prohibit the import to or export from Australia of any carbon that was captured from a fossil fuel facility. This includes existing new or expanded facilities. This bill must not be used to enable new gas mines to be opened or existing ones to be expanded. The basic reasoning is that CCS only deals with scope 1 emissions and does nothing to deal with the vast majority of emissions produced when gas is burnt—over 85 per cent of the emissions. I'm also proposing a prohibition on the use of public money for any carbon capture and storage project that is in any way connected to fossil fuels. Public money must not be used to prolong the life of fossil fuel projects.

The second category of amendments I am proposing should be easy for the government to agree to. The government says that this bill is necessary to implement its international obligations under the 2009 amendment to the London protocol. However, the bill omits two very important aspects of the protocol: the risk assessment and management framework for carbon sequestration in sub-seabed geological structures and the specific guidelines on the assessment of CO2 streams for disposal into sub-seabed geological formations. These risk assessment and management measures do not form part of the permanent requirements in this bill in its current form. Instead, the environment minister can grant a permit to import and export carbon dioxide by reference to high-level considerations that fail to grapple with the seriousness of the activity. If the government is bringing this bill to comply with its international obligations, why would it only legislate the harmful aspects of those obligations and not the risk mitigation measures that accompany them?

The final set of amendments I have proposed cover what should happen if—or, should I say, when—things go terribly wrong. I believe it must be the companies who want to dump the carbon under the seabed and not the Australian taxpayers who are made liable for monitoring, maintenance and remediation of carbon capture and storage facilities. These companies should also be required to put up a bond to cover those liabilities as a condition of any permit. If they go ahead and import or export CO2 without a permit, they should also suffer serious penalties, as outlined in my amendments. I urge the government to adopt these amendments to ensure that this bill is used in the manner that it is intended.

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