Jerome Laxale (Bennelong, Australian Labor Party) Share this | Hansard source

Establishing the Net Zero Economy Authority shows our government's strong commitment to ensuring that we do, in fact, transition to a net zero economy. As the world works to reduce greenhouse gas emissions, we must handle this change with careful planning and a clear vision. The Net Zero Economy Authority will be crucial to managing this transition. Its main goal will be to work alongside workers, industries and regional communities as our nation shifts from relying on fossil fuels to embracing renewable energy.

This change is not only about meeting environmental goals; it's about securing Australia's economic future, creating new jobs and building sustainable industries that will give Australia a global competitive advantage. We are fortunate to have a unique advantage as the world transitions away from fossil fuels: we have the critical minerals needed to decarbonise the world, we have plenty of sun and land for solar farms, and we have some of the world's best conditions for onshore and offshore wind.

Unlike the Liberals and Nationals, ours is a government that accepts and understands this reality. Ours is a government that will use these strengths to drive down emissions and to grow our local economy. We understand that we have the opportunity to become a global leader in renewable energy and that we have a competitive advantage to manufacture using cheap, emissions-free energy. Compare this understanding to that of those opposite. The Liberals are captured by climate denialists who oppose grid-scale solar projects, who ridicule battery storage, who ridicule electrification and who oppose wind farms and hydro. From them we have had over a decade of climate negligence, resulting in wasted time and wasted opportunities.

Our government was elected with a mandate to take real action on climate change. Communities like mine are sick of governments wasting time and politicising climate action. Bennelong is sick of the climate wars initiated by the Greens, from the Left, and the Liberals, from the Right. They want consensus and they want action. The establishment of the Net Zero Economy Authority through the passage of this bill is taking the action that Australians elected this government to take.

Countries across the globe are making the shift towards net zero. Australia under Labor is part of this global movement. This government, unlike the former, acknowledges the necessity of reducing our emissions. We have pledged to reduce net zero emissions by 2050, aligning ourselves with international efforts to reduce the impacts of climate change. Personally, I'd like to achieve that goal well before 2050 and I'll continue to work within the government to help achieve that.

Our 2030 and 2050 targets will require significant changes across all sectors of our economy, particularly in energy production, transportation and industry. As a nation whose economy has long relied heavily on fossil fuels, shifting to net zero presents challenges and opportunities. The potential implications for Australia are profound. Our fossil fuel based industries, including coal, oil and gas, have been major economic drivers and sources of employment. Transitioning away from these industries will have significant economic, employment and regional impacts. But if we fail to transition we know the catastrophic impacts we will face due to climate change.

According to the Climate Council, without significant emissions reductions Australia is likely to experience more frequent and intense extreme weather events, such as bushfires, floods and heatwaves. These events have already caused billions of dollars in damage and have devastated communities, and without meaningful climate action they'll get worse. Deloitte Access Economics warns that without adequate climate action Australia's GDP could be reduced by six per cent annually by 2070, amounting to $3.4 trillion in lost economic opportunities and 880,000 fewer jobs.

We are under no illusions here. The transition to net zero isn't going to be easy, but it must be done. It has been and will continue to be a complex and challenging path, but Labor understands it's a path we must tread. Transition is essential for our environment but also for our economic future. Our commitments to net zero mean that we are contributing to global climate efforts but also paving the way for a more resilient and sustainable Australian economy. We want to unlock our potential to be a renewable energy superpower, and to do that we need to bring communities, workers and industry along with us.

I cannot understate the potential Australia has with renewable energy. We have the critical minerals to decarbonise the world, we have the best solar conditions in the world and we have world-class onshore and offshore wind conditions as well. And we're getting there, Madam Deputy Speaker. According to the International Energy Agency, renewable electricity generation in Australia quadrupled in the 2000s, increasing from 17.6 terawatt hours to 70.3 terawatt hours. This remarkable growth has elevated the national share of renewables in electricity generation from eight per cent to nearly 30 per cent. And we learnt this year that we are on track to meet our 82 per cent renewable energy target by 2030 and meet our emissions reduction targets too. Furthermore, Australia leads the world in household solar photovoltaic installations, with one in three households having solar panels. This widespread adoption underscores our capacity to harness solar energy effectively. That's why we're investing $20 billion towards the Rewiring the Nation program and over a billion dollars to help households further electrify.

In addition to renewable energy, Australia is rich in critical minerals required for net zero technologies. We are among the top global producers of lithium, cobalt and rare-earth elements, which are vital for batteries, electric vehicles and other clean energy technologies. We're capitalising on this opportunity with a $15 billion package to support the critical minerals industry and promote renewable hydrogen production.

It's not just our government that understands Australia's potential to become a renewable energy superpower. Leading industry bodies and climate change organisations say we can do it too. The Climate Council emphasises the urgent need for Australia to capitalise on our resources, stating that our nation can lead the world in renewable energy production and innovation. Climate Council senior researcher Dr Carl Tidemann highlights:

Every step we take towards a grid powered by 100 percent renewable electricity is a step towards lower power bills for Australians, less harmful carbon pollution and more control over our own energy.

The Australian Energy Market Operator has outlined a comprehensive, integrated system plan that aims to transform our energy market into a low emissions grid. Greg Bourne, a former president of BP Australasia, underscores the feasibility of transitioning away from fossil fuels saying

Australia needs to phase out fossil fuels as quickly as possible and replace them with clean and affordable renewables and storage. It's the quickest path to a cheaper, cleaner, safer, and more reliable electricity system.

This transition is important and happening, and the Net Zero Economy Authority that this bill seeks to establish is such an important addition to our strategy to manage the transition to net zero. The authority's primary task is to implement the Energy Industry Jobs Plan. This plan is designed to assist employees affected by the closure of coal- and gas-fired power stations. It includes jobs and skills matching, training, career planning and financial advice. By facilitating redeployment arrangements, the plan ensures that workers can smoothly transition into new employment opportunities within the clean energy sector while ensuring that no worker and no region is left behind as we move towards a net zero future.

The Net Zero Economy Authority will also act as a catalyst for major project development and investment. It will facilitate public and private sector participation in emissions reduction and net zero transformation projects across Australia. This will include working with established investment funds and coordinating policy and program design to ensure an orderly, positive and swift economic transition. The authority's responsibilities include mobilising public and private financing support, addressing infrastructure needs and navigating tricky regulatory processes to bring these megaprojects to fruition. By working in a genuine partnership with businesses, unions and communities, we aim to ensure that the transition to net zero is inclusive, equitable and beneficial for all stakeholders involved.

This authority is pivotal in ensuring this just transition away from a fossil fuel based economy to a renewable energy powerhouse. This support is especially crucial for regions like Gladstone, the Hunter Valley, Latrobe Valley, Upper Spencer Gulf and the Pilbara. These regions historically dependent on fossil fuel industries are poised to become the economic powerhouses of Australia's future net zero economy.

The closure of major industries profoundly impacts communities. It sees workers lose their jobs and families facing significant economic and emotional hardships. Economies are disrupted, services are put under strain and it can leave a long-lasting mark on these communities. We can look to the shutdown of the BHP Newcastle steelworks in Newcastle in 1999 to see these real impacts. These steelworks once employed over 11,000 people and were a cornerstone of the local economy. However, with global steel demand collapsing and the plant closing, it resulted in the retrenchment of 2,000 workers and 1,000 contractors. Many workers had spent their entire careers in this plant, and the sudden loss of employment left families in financial distress. The ripple effects extended beyond direct employees, affecting local businesses and services. The experience of Newcastle underscores the critical need for our government's structured support during these important and necessary transitions.

That's what the Net Zero Economy Authority will do. It will ensure that, as we transition to the new economy, we support communities like the Hunter Valley and Newcastle, we support affected workers and communities and we provide them with opportunities in the new economy. It will ensure that communities and workers are prepared for the transition we need and that they have the opportunities to retrain and diversify, while ensuring that they avoid severe disruptions we've seen in the past.

Our government has a comprehensive strategy to drive Australia towards its 2050 net zero target. The government has committed to a suite of initiatives aimed at reducing emissions whilst helping grow new industries and ensuring a just transition for all. The establishment of this authority through the passage of this bill is a critical step in a broader strategy designed to guide Australia towards a sustainable future. This authority is integral not only for managing the transition but for ensuring that our workers and our regions are well supported throughout. From emissions reductions targets, the safeguard mechanisms, our Rewiring the Nation program, the Powering the Regions Gund, our capacity investment schemes, by helping households electrify, by investing in green hydrogen and critical minerals and much more, Australia needs to know that we have a committed and holistic approach to achieving net zero emissions.

Our shift away from fossil fuels will stimulate economic growth, create sustainable jobs and foster innovation across multiple sectors. The Net Zero Economy Authority will play a crucial role in coordinating all of these efforts, ensuring that investments are strategically directed and that the benefits of the transition are widely shared. Our government is committed to taking decisive action on climate change while ensuring that no-one is left behind. The Net Zero Economy Authority embodies this commitment, providing necessary support for workers and communities affected by the shift.

This legislation is crucial. Without it, the transition will proceed and potentially leave behind support for those who need it the most. I commend this bill to the House.

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