Chris Bowen (McMahon, Australian Labor Party, Minister for Climate Change and Energy) Share this | Link to this | Hansard source

I move:

That:

(1) the following matter be referred to the Climate Change Authority for review, in accordance with section 59(1)(a)(ii) of the Climate Change Authority Act 2011:

(a) the potential technology transition and emission pathways that best support Australia's transition to net zero emissions by 2050 for the following sectors:

(i) electricity and energy;

(ii) transport;

(iii) industry and waste;

(iv) agriculture and land;

(v) resources; and

(vi) built environment;

(2) the review must identify:

(a) existing and prospective opportunities to achieve emissions reductions;

(b) which technologies may be deployed in each sector to support emissions reductions;

(c) how public and private finance can support and align with these emission pathways;

(d) barriers to implementation, such as short-term or longer-term pressures on cost and supply chains and the pace of technology commercialisation;

(e) workforce matters, including skills and opportunities for women;

(f) any gaps in existing evidence and data; and

(g) any other relevant factors;

(3) the review must take into consideration:

(a) the principles for the Climate Change Authority set out in section 12 of the Climate Change Authority Act 2011, including the global goals in Article 2 of the Paris Agreement and boosting economic, employment and social benefits; and

(b) the range of emissions reductions achievable through the deployment of available and prospective technologies;

(4) the Climate Change Authority must give the report of the review to the Climate Change Minister, in accordance with section 60(1)(b) of the Climate Change Authority Act 2011, by 1 August 2024 to assist the Government in developing a national net zero by 2050 plan; and

(5) a message be sent to the Senate acquainting it of this resolution and requesting that it concur and take action accordingly.

On 18 July, I announced at the Clean Energy Council that we will be working with industry, the climate movement, experts, unions and the community to develop sectoral decarbonisation plans as part of our net zero 2050 plan. We are beginning work on those plans—on the plans for electricity, energy, industry, the built environment, agriculture and land, transport and resources. The government's sectoral plans will be developed jointly between me and the relevant Commonwealth portfolio minister. We'll also, of course, be working closely with state ministers.

This motion is the first ever reference from the parliament under section 59 of the Climate Change Authority Act 2011. It requests the Climate Change Authority to develop technology based sectoral pathways for these sectors. This advice will be an important input into the government's sectoral plans and help investors identify opportunities in our transformation to net zero. Under this referral, the Climate Change Authority will look in detail at the technology options for each of the identified sectors to get to net zero by 2050, with the Climate Change Authority to report back to the government by August 2024. We value the Climate Change Authority's independent expert advice on these matters and its deep consultations with the sectors and the community.

When I announced the sectoral plans on 18 July, our approach was welcomed by stakeholders across the board. The Business Council of Australia stated, for example:

Development of plans for each sector of the economy is the only way to effectively 'build up' to nationally determined contributions for 2035 and beyond, that are both ambitious and pragmatic and navigate an orderly transition to a resilient, prosperous net zero economy.

We're already implementing our Powering Australia plan to meet our legislated 2030 and 2050 targets. Key reforms, including the Rewiring the Nation policy and our reformed safeguard mechanism, have been implemented, but there is much, much more to do.

The previous government had no credible net zero plan or sectoral approaches to meet its commitments. The previous government was never interested in expert or independent advice. The 2050 plan lodged by the previous government was a fantasy document. It assumed future technologies would do the heavy lifting without any effort or investment to bring them about, and the CCA—the Climate Change Authority of Australia—was not consulted on this so-called plan. We are working across the parliament for evidence based policy, and this referral was raised as an important step when the government passed our safeguard reforms in March this year. The House and all Australians must work together to do what's both possible and practical to stop dangerous climate change and realise the economic opportunities of net zero. I commend the motion to the House.

Adam Bandt (Melbourne, Australian Greens) Share this | Link to this | Hansard source

I rise to support the referral and the motion that has been moved by the minister and welcome him doing so. Of course, as people would be aware, there were discussions and negotiations between the government and the Greens during the course of the debate about climate legislation. Out of those discussions arose the need to seek the Climate Change Authority's advice about pathways, so I welcome the referral because it's something that we consider to be very important.

One of the things that this referral seeks to do—and why we support it—is to ask for advice about what it means to put into practice a response to the climate crisis, in particular an Australian response to the climate crisis. We have a different view to the government about the emissions reductions targets, what should be put into place and how quickly we need to move to tackle the climate crisis, but one of the things that are important about this referral is that it includes a reference to the globally agreed goals that are in the Paris agreement. That includes the accepted goals about limiting global heating to well below two degrees while still keeping 1½ degrees in sight.

As has been previously alluded to, the Climate Change Authority, which was set up back in the 2010 parliament with the support of the Greens when we were in a shared-power parliament, was at that time a source of very important and independent advice. Then when the coalition was elected it was nobbled and there were tasks removed from it, including advising about how Australia's contribution will play a role in limiting global heating to well below two degrees. That was removed by the coalition, and the Climate Change Authority was essentially parked for a long time. The resurrection, if you like, of the Climate Change Authority and of asking it to do important work is important and a significant step, and it's one that we welcome.

But, in some respects, this is also going to be the first significant piece of independent work that the Climate Change Authority has been asked to do: to consider what Australia's contribution should be to meet those temperature goals. That is crucial. We certainly have the view that the science is very clear about what needs to be done to meet those temperature goals, and this is an opportunity now for some evidence based information for the parliament about what it would mean for Australia to do its bit to ensure that we meet those temperature goals.

People know what the Greens' position is around what needs to be done, but, critically, one of the things that we are all so excited about with this referral is that there are significant opportunities for Australia if we get our skates on and do what the rest of the world is asking. We have the capacity here in Australia to supply critical minerals and clean energy to the rest of the world and to sell to the rest of the world the products that they need in a zero-pollution society. This will hopefully be the first holistic piece of work that says, 'We know we need to get out of coal and gas and stop approving new mines, but we've got some massive opportunities over here on the other hand.' This could be the first significant piece of work to inform the parliament—and an independent piece of work.

I look forward to seeing what the Climate Change Authority comes up with that is consistent with the science. Again, I thank the minister for the referral. It's an important referral: revitalising the Climate Change Authority after a decade of it being attacked by the coalition. Let's not forget they tried to abolish it to ensure this parliament never had any independent advice. We saved it and kept it alive, and I'm pleased that it's now being asked to do some very significant work.

Helen Haines (Indi, Independent) Share this | Link to this | Hansard source

I rise to support this motion which will allow the Climate Change Authority to review sectoral pathways for emissions reductions to best support Australia's transition to net zero emissions by 2050. I thank the minister for making this motion today and establishing this particular review. Yesterday, I was really pleased to meet Greg Combet, the chair of the Net Zero Economy Agency. I'm sure that a review such as this will provide important data and information for Mr Combet and that agency.

I was very pleased to amend the Climate Change Act, when it was introduced to this House, to ensure that any measures to respond to climate change should boost economic, employment and social benefits, including for rural, remote and regional Australia. Renewable energy, and the new industries that they will unlock, could become the next gold rush or the next wool boom for regional Australia if we get it right—but only if we plan it right. So it's really important that we see long-term, well-paid jobs being created in our local towns and new training opportunities at our local TAFEs and regional universities, and it's really important to make sure that profits stay local instead of all flowing overseas. If this renewable energy economy is to really get traction, we need to make sure that that traction looks like legitimate rural and regional development.

I was also happy to amend that act so that the list of eligible qualifications to the Climate Change Authority would be expanded to include regional development experience. Again, this is really important if we're to see this renewable energy transition truly deliver for rural and regional Australia. We absolutely need regional voices at that table. We need people who understand how to make renewable energy actually deliver for regional communities.

This review that's been referred to the Climate Change Authority is a key moment to examine what a net zero emissions pathway looks like for our agriculture sector. This is really important work. Agriculture is key to our transition. I was very happy to work with the government and to see that, in the last budget, they funded sustainable agriculture facilitators—SAFs or, as I was calling them, 'climate change agricultural extension officers'. They're the same thing. These positions are extremely important because we need to make sure that our agriculture sector can work with people who can translate the science into practical action on our farms. We know that our farmers are keen to do this, but they need hands-on advice, and I thank the minister for agriculture for working really constructively with me on that. This review is an opportunity to look at those programs and to ensure that these sustainable agriculture facilitators are set up in a way that will enable them to succeed.

This review will look at prospective opportunities to achieve emissions reductions and at how public and private finance can support emissions pathways . Again, I've met with the minister many times around the work I have done on the local power plan, which is all about engaging local communities in rural and regional Australia to truly benefit, to share in the production of energy and the profits that come from that, and to make sure that we can see cheaper prices in the areas where the energy is now going to be generated. So I really urge the authority to look at locally owned renewables and the co-benefits that communities should receive as we work towards this massive technology and infrastructure transition.

I also urge the authority to consider the primacy of community engagement in the pathway to a renewable energy economy—the social licence to achieve these pathways. I was very pleased to work with Senator Pocock and to go to the minister's office and establish terms of reference for a review into community engagement about renewable energy infrastructure projects across rural and regional Australia. The Dyer review is now open for submissions, and I urge rural and regional Australians to make submissions to that review and to participate in the roundtables that will be taking place across the renewable energy zones.

Although the Dyer review is now open for submission—and it's critical, if we wish to ensure technology transition and emissions pathways, that we have the support of the community—in the findings of this review, we're seeing what's happening across parts of this nation where regional communities aren't taken seriously. I think it's important to remember that questions from rural and regional Australians about things like the grid or large-scale grid projects—whether they be wind, solar or hydrogen—aren't necessarily objections. They're legitimate questions. We will achieve this if we do it together. I urge the authority to examine the work that Mr Dyer's review brings forward and the recommendations that come with that.

Again, I thank the minister for this review. I have a strong record in looking for practical means to engage with rural and regional Australia in our response to climate change. I'll work closely with, and watch closely, this Climate Change Authority as it listens to the voices of rural and regional Australians.

Kylea Tink (North Sydney, Independent) Share this | Link to this | Hansard source

I too rise today to speak in favour of the motion moved by the Minister for Climate Change and Energy. I'm grateful to see such a motion brought before the House. The people of North Sydney remain incredibly concerned that, despite all the right words having been said by the government, we're yet to actually see any tangible impact from the new policies. Indeed, many were devastated to read the news last week that Australia's emissions have gone up in the last 12 months.

Globally, the number of countries announcing pledges to achieve net zero emissions over the coming decades has grown, and this is to be welcomed. The question of how to transition to a net zero energy system by 2050 while ensuring stable and affordable energy supplies, providing universal energy access and enabling robust economic growth is one that every country and every economy making such a commitment must face. It is a huge undertaking, and it is not a question that can be answered unless we are prepared to break it down to its smallest possible parts. Setting out a cost-effective and economically productive pathway that moves us towards a future focused economy supported by a clean, dynamic and resilient energy economy dominated by renewables like solar and wind instead of fossil fuels is a challenge that will require many shoulders to be put to the wheel. The path to net zero emissions is narrow. Staying on it requires immediate and massive deployment of all available clean and efficient energy technologies.

Ultimately, it will require all of us, the government, industry and the community, to work together, sector by sector, to share the burden and reduce our emissions as quickly as practicable. In that context, today's motion is a welcome development; however, I observe that the motion doesn't specifically direct the Climate Change Authority to overlay a holistic approach to emissions reduction.

What I'm seeing in my urban electorate is that the nexus between electricity and energy, transport and the built environment is critical in optimising emissions reductions pathways. The efficient electrification of buildings and transport will add loads to the electricity system, not just at the transmission level but also at the urban distribution networks—the poles and the wires between high-voltage substations and individual buildings. Distributed energy resources from rooftop solar and batteries to hot water systems, air conditioners and EVs all have a role to play in optimising the transition to zero emissions energy. As we struggle to balance a reduced reliance on fossil fuels, stretching the limits of current renewables technology and understanding new market dynamics for the various inputs, it is also incumbent on each of us to consider how we will conserve energy to ensure the processes we currently rely on during the transition phase are as efficient as possible, and for the government to continue to support energy-efficient initiatives at the community level. Things like making buildings thermally energy efficient through sensible insulation, glazing, window treatments and draught stopping are critical first steps, as is turning out the lights in high-rise buildings when no-one is in them. Those, and the efficiency dividend of electrified appliances and vehicles, can significantly reduce our primary energy needs.

Demand management means we have fewer renewables to build out in the first place. Using smart, orchestrated distributed energy resources means we can optimise the use of power when it's being overproduced and reduce the use of power when there's a shortage in the renewable generation. That will massively reduce the need for grid-level storage. For example, energy tariffs could be used to encourage electric vehicle owners to soak up excess solar during the day if chargers were available where people park their vehicles in the day; ditto for electric hot water heaters.

We need to ensure that the distribution network providers and electricity retailers are incentivised to optimise the use of these distributed resources because that will minimise the need for expensive upgrades to the distribution networks in our cities and towns. While a sectorial pathway can more readily allow for a critical detailed analysis of the peculiar challenges facing each sector, to allow us to understand synergies and tensions in pathways, where our quicker wins might be had, where investment in R&D and infrastructure is best allocated—and what the potential is for each sector to provide its own circular economy solutions—it is also essential that the Climate Change Authority be directed to avoid looking at the sectorial pathways as silos, and to overlay thinking about how the various sectors, holistically, can unlock new opportunities to reduce the costs and complexity, and accelerate our emissions reduction.

Question agreed to.