Carina Garland (Chisholm, Australian Labor Party) Share this | Link to this | Hansard source

As others have said in this chamber, we have some amazing opportunities ahead of us as we transition to a net zero economy, but we know that these opportunities will not seize themselves. As the race to net zero accelerates, we must ensure Australian workers and communities are supported to play their parts. We know that there are communities in which the experience of the transition will be most concentrated, and our government knows that we must do what we can to support these communities and all those that live in them. We know the government has a critical role to play. That role is to coordinate programs and policies to attract investors and help communities make the most of the transformation opportunities.

Australia is uniquely positioned to become a renewable energy superpower in the future net zero global economy. As a nation, we have an abundance of renewable energy sources and, as home to every metal and critical mineral essential to net zero technologies, it would be negligent not to take advantage of our natural assets in a competitive global economy. This is, of course, why our government is taking the opportunity and responsibility incredibly seriously.

I'm really proud to be part of a government that wants to seize the opportunity presented, and the Net Zero Economy Authority is a key part of the plan to do this. Its job is to ensure we are looking after Australia's workers and regions as we transform from a fossil fuel based economy to a renewable energy superpower. This recognises that the way we navigate economic change is as important as reaching the destination of a net zero economy. The authority will, on behalf of government, be a partner with industry and investors in getting big, transformational projects happening. Importantly, the authority will support workers through the change. As Australia's ageing fleet of power stations retires, the authority will take a collaborative and consultative approach in working with employers, unions and others to support workers into new opportunities. This is not just the right thing to do by workers; it also ensures we're making good use of the highly skilled workers we need more of in the net zero economy.

The authority will also play an important role in helping communities navigate this change, especially in those regions where change may be significant. This new authority, with its focus on managing economic change, complements over $40 billion in government initiatives to reduce emissions and become a renewable energy superpower. These include the $20 billion Rewiring the Nation program to modernise our electricity grid and infrastructure so they can support our renewable energy based system, the $1.9 billion Powering the Regions Fund to support the decarbonisation of existing industries and the creation of new clean-energy industries, the $6 billion critical minerals facility to grow our critical minerals production sector, the $2 billion Hydrogen Headstart program supporting development of large-scale renewable hydrogen projects and, of course, our government's $15 billion National Reconstruction Fund to help diversity and transform Australia's industry for a net zero economy.

The authority will ensure workers receive the support they need to make the most of the opportunities here and in the future, working with employers, unions and others. As part of this, the bill will establish the legislative framework for the Energy Industry Jobs Plan. Administered by the authority, the plan will enable the use of pooled redeployment arrangements. These will support workers in closing coal-fired power stations and closing gas-fired generators and their dependent suppliers to transition directly to a new job. Workers in a closing facility will have opportunities to be redeployed into a new job with another employer in the same or similar industry. Closing or dependent employers will be encouraged to participate voluntarily.

At this point, I want to reflect on my previous work with workers in industries where there had been disruption and displacement. I know how difficult many of those workers found obtaining good, well-paid, secure jobs, so it's really important—and I'm really proud—that our government is taking this really positive step to set up the Net Zero Economy Authority to ensure that no workers are left behind as our economy transitions.

Our largest coal-fired power stations are run by mature corporations. They often have strong plans in place to support their workforce as they prepare for closures. Indeed, we expect many of them to put their hand up to participate in the Energy Industry Jobs Plan. Notwithstanding that, the bill provides the Fair Work Commission with powers to require their participation as a fail-safe to make sure the transition is orderly. It enlivens enforceable obligations for those closing employers to provide transitional support to their employees subject to operational requirements. The authority would encourage receiving employers to participate voluntarily. Those receiving employers that put their hand up will be in pole position to grab highly skilled and experienced workers. This community of interested employers will give workers the greatest opportunity to secure alternative employment.

The proposed model for the plan reflects the outcomes of detailed consultations with employee and employer groups. This is all about supporting workers on the front line of the energy transition and supporting businesses to access the skills and experience that they value. Helping workers and their families stay in place helps communities stay whole.

On a functional level, the Net Zero Economy Authority will promote orderly and positive economic transformation as the world decarbonises. The authority will do this by helping to facilitate the achievement of Australia's greenhouse gas emissions reduction targets and, in doing so, assist Australia's transformation to a renewable energy superpower. We'll also seek to ensure Australia's regions and workers are supported through and benefit from the associated economic transformation as we seek to transition our economy in a considered and sustainable manner.

This is going to be one of the most significant economic shifts we've seen since the Industrial Revolution, as previous speakers, including the Prime Minister, have said in this chamber. The scale and significance of global efforts to reduce emissions will absolutely transform industries and economies. While currently an emissions-intensive economy, Australia's net zero transformation will lead to significant economic and workforce transition. While this transition is important, it's important to also look at the opportunities that communities are going to receive as a result of that transition through the industry jobs plan and through the guarantees there.

We know we need to engage stakeholders widely. We've had broad support through our consultation process. Indeed, Jennifer Westacott, the former Business Council chief executive, described this as an opportunity for better jobs and better living standards. Steve Murphy, the National Secretary of the Australian Manufacturing Workers Union, explained that this delivers on a promise. That's what our government is doing and what this bill will do—making sure, when we're moving into a net zero economy, as our industries are transforming and transitioning, that we're not leaving communities behind.

I know that many in my own community of Chisholm are really passionate about the positive steps our government is taking to move into a net zero economy. I want to acknowledge some of the local groups that are making a positive difference for the environment locally and are fierce advocates for a carbon-zero future. These groups include Baby Boomers for Climate Change Action, the Australian Conservation Foundation Chisholm Group, the KooyongKoot Alliance, the Friends of Scotchmans Creek and Valley Reserve and the Friends of Damper Creek Conservation Reserve.

I believe that Australia's future is in renewable energy and that there are enormous opportunities that we as a nation can seize. I'm proud of our government's reliable renewables plan, which will deliver 82 per cent renewables by 2030. I'm proud to be part of a government that will, through this bill, help position this nation and our communities to take advantage of the opportunities that a transition to a net zero economy offers us. I'm really proud that, in that transition, we will support workers and industry and make sure that no community is left behind through positive and necessary generational change.

Elizabeth Watson-Brown (Ryan, Australian Greens) Share this | Link to this | Hansard source

It feels a bit like some kind of sick joke, doesn't it, that in the same fortnight the Minister for Resources announced the future gas strategy the government put up this legislation, the Net Zero Economy Authority Bill 2024, on Australia's path to net zero? Let me be clear: these two things are mutually exclusive. Australia has no real path to net zero, not under this government. The future gas strategy destroys any path to net zero. This government wilfully embraces the gas cartels, announcing more gas exploration despite the looming climate catastrophe. The government says that gas is a transition fuel—but to where? Not to net zero. If they keep rolling out the red carpet for gas projects, the transition will be to climate disaster. Labor are climate con artists. They are literally gaslighting everyday Australians, completely greenwashing their legislative agenda and at the expense of a real transition for coal and gas workers.

The Greens are the only party pushing for a statutory authority to support all coal and gas workers through the transition to renewables. This is not that authority. At the crux of it, this legislation covers only 10 per cent of the workforce affected by any transition to net zero. It only relates to employees of coal and gas-fired power stations and coalmines supplying domestic power generation. There's nothing about gas and oil export workers. Labor says, 'Bad luck!' if you're one of the 90 per cent of workers this bill just doesn't cover. It's because the Labor government has no desire to offer up a real transition plan. That's explicitly clear with the decision to exclude coal and gas export workers from this bill. This is a shameless reflection of Labor's plan to continue expanding coal and gas beyond 2050, such as the Barossa project, which, in the next 12 months, will emit more than 401 million tonnes of CO2 pollution. That's 80 per cent of the total pollution of Australia in just 2020 alone. What about the Scarborough offshore gas field? That's another devastating project, this one brought to us by another member of the gas cartel, Woodside. This project will produce emissions equivalent to six coal-fired power plants over its lifetime. The Scarborough-to-Pluto project will emit over 1.37 billion tonnes of pollution. That's the pollution impact—just to compare it—of 20,000 daily flights across the world for 25 years. It's the biggest oil and gas project in a decade.

It just doesn't make any sense. The planet's cooking. We need to stop any new coal and gas projects now. So what does this government do? It clears the way for Woodside to proceed with its biggest project in 10 years. What about Browse, another component of Woodside's Burrup Hub gas expansion? This expansion is the most polluting of all coal, gas or oil proposals in the Southern Hemisphere. It will have a lifetime of emissions of more than 13 times Australia's annual emissions. Labor is acting as the political arm of the fossil fuel industry. They've got massive amounts of taxpayer dollars for fossil fuel products, over $10 billion in subsidies and $1.5 billion in the budget for Middle Arm, which will be a gas export hub. That is public money—our taxpayer money—literally being handed to these highly-profitable gas companies that pay almost no tax. Unbelievable! Not only is the government letting Santos and Woodside virtually write their environmental policies but they're also giving them cash handouts—money that could be used to put dental cover into Medicare; to build public housing; or to ease the cost of living. But what do we get instead? We get huge gas projects that wreck our environment. With 2.5 or three degrees warming we will have heat waves that will kill thousands in our cities; floods and droughts that will cause massive crop failures; and cyclones and storms that will destroy entire communities. That's the future—that's what the scientists are saying the future is. That's the future for their own children and grandchildren that every Labor MP here is actually voting for.

We don't need new gas expansion. Gas is not a transition fuel, it's a fossil fuel. Australia has enough gas for our domestic supply for the next 100 years. Australia barely uses any of the gas we extract; we export 84 per cent of it. By the way: it's not households who use most of our domestic supply, it's actually the gas industry. You can't export natural gas in its raw form, it has to be turned into liquefied natural gas, LNG, a process that uses more gas than the entire manufacturing industry and double the amount that households use annually.

Surely, if we export all of this gas, Australians must be getting a good deal in tax revenue—right? Well, no. The industry pays almost no tax or royalties. Santos made $31 billion and paid no income tax; Chevron made $6.8 billion last year, and paid $30—$30!—in income tax. Yes, $30! Woodside made $57 billion profit, with only three per cent tax paid. Even Texas, the crude oil and gas capital of the USA, has a royalty rate of 25 per cent on fossil fuels. Queensland's rate doesn't even hit 10 per cent. Gas companies like Woodside get our free money, pay nothing in return and leave us with a climate bomb in the form of the Beetaloo basin project. It's a pretty poor return on Australian investment. And, at the end of the day, it's the workers of these gas companies that are being left behind by this bill, while their employers laugh all the way to the bank, paying almost no tax on their billions in profit and wrecking the planet in the process.

Zaneta Mascarenhas (Swan, Australian Labor Party) Share this | Link to this | Hansard source

I rise to speak on the Net Zero Economy Authority Bill 2024. The thing that I'd say about the Australian Labor Party is that what we want to see is action on climate change. We want to take workers on the journey and we want to keep the lights on as well. I think that it's interesting that we've got the Greens on one side, who literally want to turn the lights off today, and then we've got the coalition on the other side, denying that climate change is happening. The truth is that it's the Australian Labor Party that will be in the best position to take us on this net-zero-emission journey.

I think that it's important to understand our relationship with the resource sector. I'm a proud Western Australian, born and bred in the Goldfields. I have resources in my blood; I'm an engineer who has worked on the mines. But I am also someone who wants to see action on climate change. In WA, coal was first discovered in the Collie Basin back in 1883. A few years later, the Collie coalmining district was declared, a railway was extended to Collie before the turn of the century and the production of coal began. Back then, in the 1800s, it was a pretty tough life for miners, but it was an important industry that saw the development of Western Australia. It was also an important development for the railway network and the regions in WA. By 1930, that industry had flourished and employed over 800 workers. By the 1950s, this had risen to 1,400 miners in the Collie Basin. It remained a significant industry in the 2000s and employed 1,200 people on the mines and a thousand people in power stations and support industries. For decades, Collie has supported WA families, workers and industries. They've literally kept the lights on for households, industry and businesses.

As we decarbonise, the nature of our regions will change. I recognise our regions are the powerhouse of our country. That's where we get our food. That's where we get our minerals. That's where we get our energy resources. As we decarbonise, I want to make sure that we take these communities on board, because they have done so much for us in the past, and we absolutely want them to continue to play an important role in our country. The thing that's great about Collie is that it is now an example of the economic and energy transformation that is underway in our nation.

Some years ago, a just transition working group was formed, and it was a partnership between private business, unions, workers and communities. They started thinking about plans for the future and how they wanted their town to be. So, when the Western Australian government announced their plan for an energy transition—which is about turning off coal-fired power stations by 2030—the community knew that they had a positive future and positive industries to ensure that their town continued to thrive. Collie is a beautiful place with beautiful old-growth forest trees. They have a lovely dam, and they've got some great bike trails as well. It's a really beautiful place to go visit. The interesting thing will be to see the industries that will develop in this town. The WA government committed $0.5 billion to a transition package, which included a fund to attract new industries. Among the new industries that have been discussed are a pilot plan for graphite and pumped hydro—a new alternative energy source—and they're also investing in skills. We don't want to see this in just one coal powered town in WA; we need to make sure that we see this across the nation. That's exact what this Net Zero Economy Authority bill does.

Let's think about it. This is about a transformation journey to net zero. But let's face it—it's not a journey; it's a race. It's a race that this government is committed to winning. We know that there is work that we must do to get there, and it's not a journey that we've embarked on lightly. It's something that we've taken very seriously, unlike the previous government. The previous government did not prepare to act and did not have a plan. They ignored the race and they ignored what was happening around them. They avoided the challenge that was before them. A coherent energy policy—did that exist? No. A climate change policy—did that exist? No. Actually, I think that there were 20 policies in total. Was there a strategic approach to the energy transition? No. There was no plan, no foresight and no long-term strategy about how to ensure the replacement of 24 coal fired plants such as Collie.

Since coming into office, the Albanese government has turned this around. In our budget, we announced further initiatives to keep us on the path to net zero, and that pathway runs through Western Australia. The decisions that we make now will make a huge difference for our future. Australia has the potential to be a renewable energy power. We are going to do this by investing in programs to make sure that we get there, with $3.2 billion through the Australian Renewable Energy Agency. This will help the commercialisation of clean tech over 10 years. It also includes $1.7 billion for the Future Made in Australia Innovation Fund. We should be a country that makes things here. This will support tech-linked priority sectors including green metals, batteries and low-carbon liquids. We also have $6.7 billion in hydrogen production tax credits from 2027 to 2050. Hydrogen is a little molecule with big ambition, and it is something that's going to help transform our energy use across Australia, with the $1.3 billion Hydrogen Headstart program to support early movers. There is also $7 billion for critical mineral production tax incentives for 31 critical minerals processed and refined up until 2040. There is also $1.5 billion to strengthen battery and solar supply chains. We saw during the pandemic that supply chains became very vulnerable. We need to make sure that we have robust supply chains so that we can make these projects shovel-ready.

We also have $0.5 billion for Geoscience to map Australia's critical minerals and groundwater systems. There is also $15 million for foundational activities for green metal development, which is something that I'm really excited about. If we can create green steel, this is going to transform the way that the world does its construction. Then there is $27 million to integrate household solar and batteries into the grid.

Our budget is one that invests in our clean future and a Future Made in Australia. We're creating new, secure and well-paid jobs in our regions like Collie but also in suburbs like the ones in my electorate—High Wycombe, Belmont, Redcliffe, Forrestfield. We're making sure that we're building infrastructure and clean energy to power new growth and a new generation of advanced manufacturing. We need to make more things here, and we're introducing legislation to do just that. Australian made means Australian jobs. These decisions are examples of a government leading from the front and preparing our country for a renewable energy future, examples of a government that places the future of Australians at the forefront of our policy, to ensure that our future is made in Australia.

This bill to establish the Net Zero Economy Authority supports Australian industries, workers and families to join the pathway to net zero. The new statutory agency will play an important role in driving our strategy. It will provide a centre for coordination and planning. It will foster and promote investment from the private and public sectors. It's very important to me and very important to Western Australia, and it will support workers affected by the transition.

I am the daughter of a miner. I grew up in a nickel-mining town. My dad worked for a mining company for 19 years after he moved to Australia. When commodity prices hit rock bottom, I saw mass redundancies in my town. My dad, who had become the breadwinner at the age of 15, was basically told that he was redundant—'You're no longer needed.' He would have been in his mid-50s and probably at the end of his working career, because he had already worked for four decades as a metalworker. In this place, it's really important that we remember to think about the workers and put workers at the heart of our economy when we're looking at transitions. We need to make sure that we look after workers and take them on this journey as we see our economy transition.

This authority will collaborate with employers, unions and stakeholders to help retain people and find new opportunities. It will be able to do this through our establishing a legislative framework for an energy industry jobs plan. We'll look at redeployment and new opportunities that are key to the transition. Skills and experience are valuable, and we know that. I would say that my dad, when he didn't have employment, felt the opposite. He felt not valuable and not worthy. I want to make sure that we take people along on the journey. So making sure that we connect workers to interested employers will be a role for this authority, helping workers to find meaningful employment through the transition.

We need to make sure that families are safe, secure and connected to their communities. This is important to everyone and a part of the Australian way of life. That's why Labor is putting these measures into place, so that all Australians can continue to enjoy and appreciate our lucky country. We will help businesses overcome the challenges of closures and help regional economies move smoothly through the process. A resilient and robust local workforce and economy will be the way to do this.

The authority will play an important part in facilitating a holistic approach to the transition—one that would not have been possible under the previous government. We are a government with perspective. We are a government who cares. We are a government for all Australians, not just a few. The authority will support the inclusion and participation of our First Nations communities in the transition. Education and promotional initiatives will be a part of the role of the authority, to ensure that communities remain informed of the facts.

It's not just me or Labor that supports the establishment of this authority; there is widespread community support. The government engaged a variety of stakeholders, including First Nations groups, education and training providers, industry, investors, regional bodies, communities, state and local governments and, of course, the mighty union movement.

The authority will be governed by an independent board of a chair and up to eight members appointed by the responsible minister. We will ensure the board is responsible, representative and accountable. The board composition will include two members with experience from the union movement and two members that have experience in business, industry and finance or investment. Other members must have experience in either industrial relations, labour markets, economics, decarbonisation, technologies or policies, climate change, energy markets and regional development, First Nations engagement, advocacy, community leadership, public or corporate governance. We listened to the experts, and we want to make sure we get this decision right for our future.

In conclusion, we know that workers in communities have always played a significant role in the energy industry, right back to the 1890s—the Collie I talked about earlier versus the Collie of the 2030s. For this government, we will continue to see these communities play an important role—and that is our No. 1 priority as we travel on the pathway to net zero. While we're travelling on this journey together, it's not in isolation; it's a race. I commend the bill to the House.

Stephen Bates (Brisbane, Australian Greens) Share this | Link to this | Hansard source

I rise to speak to the Net Zero Economy Authority Bill 2024. The climate crisis is negatively impacting all aspects of modern life. The Australian population has gone through endless pain—sweltering summers, flooding events, incredible humidity, heatwaves and fires. And we know this is only going to get worse as the planet gets warmer and weather patterns become more and more unpredictable.

We are in a climate crisis right now. We cannot afford any new coal and gas projects, but fossil fuel companies have an outrageous amount of power within our political system and will do all they can to keep their profits high at the expense of this planet. The climate crisis is not just an environmental issue, however; we know the impacts disproportionately affect marginalised communities. First Nations communities, lower socio-economic areas and rural populations all bear most of the brunt of environmental degradation.

Australians are being taken for a ride. Massive coal and gas companies milk our resources and send the profits overseas while we at home face higher and higher home insurance prices, and more homes, including in my own electorate, that are entirely uninsurable. It's a broken system. A just transition must prioritise the needs and voices of those most affected by climate change.

The Greens have long supported a transition to a zero emissions society—a transition that must be used to create a more economically just and equal society. That means making sure that renewable electricity is readily available and affordable for everyone, that buildings and homes are sustainable and climate change ready and that more people are employed in the green economy. We must be ready for this future or Australia will be left behind yet again.

Gas is often touted as a cleaner alternative to oil or coal. The reality is that the extraction, transportation and combustion of gas releases eight significant amount of emissions into the atmosphere. This Labor government likes to trumpet on about the climate wars being over, but so long as it keeps approving new coal and gas mines the climate wars will continue. This government is giving gas companies a licence to destroy. As we all learned recently, the resources minister gets a letter from gas executives saying they want more money and less engagement with First Nations communities, and the next thing we know we have legislation that does exactly that—makes it easier to rapidly approve gas expansion. It is just what these huge fossil fuel companies needed—yet another win. When the fossil fuel industry says, 'Jump', Labor and the coalition say, 'How high?' Could it be that the donations from the gas companies to Labor and the coalition hold power over the decision-making process? Maybe. Probably. Definitely.

Labor must stop opening new coal and gas mines and instead focus on meaningful investment to transition to renewable energy and a net zero economy. Approving new fossil fuel projects is, at this point, anti science and leaves younger Australians in particular to deal with the fallout of a problem that they did not create but will bear the brunt of. The government keeps repeating the talking point of the gas industry that gas is the transition fuel to lower emissions, but every new gas well that is drilled and every new pipeline that is laid lock in decades of carbon emissions, further exacerbating climate change. Instead of investing in short-sighted solutions that perpetrate our dependence on fossil fuels, Australia must prioritise a rapid transition to renewable energy.

Then we have the coalition's harebrained nonstarter that is their push for nuclear. If the eye-watering exorbitant costs aren't enough for you, the lengthy lead times required to establish a nuclear industry would leave us with a multidecade black hole in energy sufficiency and simply push back action on climate change. They're trying their best to delay climate action under a thinly veiled and incomplete policy that doesn't come close to stacking up. We don't have time for it. We just need to accept that climate change is real and start dealing with it.

Australia possesses abundant renewable energy resources: wind, solar and geothermal. With sensible investment in infrastructure and technology, our country could actually become a global leader in clean energy production, helping us at home and our neighbours in the Pacific and around the world. We're talking about benefits beyond just mitigating the effects of climate change. There are vast economic benefits as well—job creation and energy independence, just to name a couple. By harnessing the power of the sun, wind and waves, Australia can secure a brighter and more sustainable future for us and for generations to come.

Recently, we have had some Labor backbenchers come out with concerns about their party's own Future Gas Strategy. Any Labor MPs who care about climate change must vote with the Greens against more coal and gas for a safer future. It's all well and good to express your concerns on social media, but at the end of the day, if you're voting for policies that enable fossil fuel expansion, what is the point? We are in the middle of a climate emergency, and all we are getting is some tinkering around the edges that poses precisely zero threat to the fossil fuel industry when what we need to be doing is stopping all new fossil fuel projects.

The need for urgent climate action in Australia could not be clearer. This Labor government's intention to expand the coal and gas industry is not only environmentally disastrous but economically short-sighted and socially short-sighted. Instead of doubling down on fossil fuels, it is absolutely critical that Australia rapidly transition to renewable energy. We need to be leading the way. We need to be promoting environmental justice towards a more sustainable future for all of us.

Australia is one of the world's largest per capita emitters of greenhouse gases. We export over one billion tonnes of emissions a year and produce another half a billion here at home. As a developed nation, we have a moral obligation to take bold action on climate change. This government must reject any expansion of the fossil fuel industry, and it must rapidly and equitably transition to renewable energy. Australia should be demonstrating leadership on the global stage, inspiring other nations to follow suit, but yet again, as always, we are playing catch up.

The climate crisis could not be more urgent. We must walk the walk and inspire international cooperation. We simply cannot afford to be left behind. Instead, this Labor government is joining with the coalition in making gas the poster child of the future. The fossil fuel industry is a Ponzi scheme, and this house of cards is already crashing down all around us. A rebranding of Scott Morrison's gas-fired recovery is not a prosperous future. My constituents in Brisbane want a clean, renewable future for this country, because it is what we all deserve.

Ged Kearney (Cooper, Australian Labor Party, Assistant Minister for Health and Aged Care) Share this | Link to this | Hansard source

I rise today to speak on the Net Zero Economy Authority Bill 2024 and the Net Zero Economy Authority (Transitional Provisions) Bill 2024. This legislation is historic. It is historic because it marks an opportunity for Australia in the face of the existential crisis that is climate change. It is historic because, if we seize this moment, if we take this opportunity, Australia can become a renewable energy superpower, one that not only produces clean energy for our communities and for export but creates new industries and jobs for all. It's historic because workers and their unions, community groups and climate organisations have been fighting for this for decades—because everyday working people should not be left behind or disadvantaged while we recharge our economy with renewable energy. Rather, they should profit and benefit from that change. More than anything, this bill is historic because it represents our future.

It goes without saying that the current moment represents a critical juncture for the world. In Australia, the effects of climate change are already being felt—scorching heat across our summers, tropical diseases heading south and longer bushfire seasons. From north to south, east to west, we're seeing extreme weather events just about every week—floods, fire, cyclones and drought. While our own shorelines are being flooded with higher and higher king tides, we know that the changing climate is also impacting our region. With sea levels rising in the Pacific, island homes could be washed away in the decades to come. We cannot afford to delay proper action any longer.

As the member for Cooper, this is something that is of the highest priority for me. My constituents care about strong action on climate change, and I'm committed to representing them. I'm committed to representing them within the Albanese Labor government, a party of government, a party that is actually about getting things done. I don't waste the precious time I have in this place going about throwing personal insists and jibes at individuals who are doing their jobs. I don't waste the parliament's time pulling stunts or moving motions without doing any of the complex work and hard slog that needs to go into seriously changing the laws of this country. I take the time and make the effort to help bring about real change, and that is what this bill delivers. It has been painstakingly written, with all the consultation, the legal advice and the touch of genius that goes into such things. I commend the minister and his team for the long hard hours that have gone into drafting this bill. This is the real change that I've been fighting for my whole career in the labour movement.

The Australian Labor Party is the party of workers. It is proudly the party of the union movement. In some corners of society, there is a misleading notion that the labour movement is at odds with the environmentalist movement. This is a misconception being peddled—that stronger environmental protection or action to address climate change will inherently impact the opportunities of everyday working people. That's a lie. I was a union representative as a young nurse back in 1985. My first official role with the Australian nursing federation began in 1997. I eventually became the federal secretary of that union before having the honour of representing all Australian workers for eight years as president of the Australian Council of Trade Unions. Throughout all that time, there was a growing awareness of changing climate. As the scientific base of evidence continued to grow, all areas of society resolved that something needed to change. Change was needed to reduce our emissions and protect our environment and, importantly, we needed to protect and support workers through that change.

It would be remiss not to acknowledge the immense difficulties for government and industry in taking effective action to address climate change. It's no easy feat. We know in the past governments have let working people down when making serious changes to our economy. I think back to the 1970s and 1980s, when the world's economy underwent a series of structural changes. As Australia got swept up in these reforms, many workers got left behind. For example, in the 1970s, the reduction of tariffs on textiles, clothing and footwear resulted in fierce competition from cheaper imports from countries in the Global South. This saw a rapid decline in Australian manufacturing of these items and significant job losses. Looking back on this history, some might say that these sorts of structural adjustments were important for the Australian economy. But what history too often forgets is the very real economic and social costs for workers, families and communities.

So what happened to all of the workers who lost those jobs? The reality of history paints a bleak picture: a third were able to find commensurate employment, another third found insecure work at lower wages and with poorer conditions than they previously enjoyed, and a final third never worked again. These were skilled, hardworking people with families to look after, mortgages to pay, kids to care for and grandparents to provide for. A more recent example is the case for ex-Mitsubishi workers when the South Australian plant closed in 2008 and again in 2017 when the then coalition government drove the car manufacturing industry entirely from our shores. An almost identical fate fell upon those workers.

While the car manufacturing and textile industries tell us cautionary tales, there are road maps of how change can be well managed to support workers through industry transition. Germany is a shining example. In Germany, the government chose to work with unions, workers and the industry when the decision was made to downscale their coalmining industry. Importantly, German workers were effectively redeployed across the industry in a systematic approach to avoid the sudden negative impact of single mine closures on the surrounding communities. This process saw thousands of workers successfully reskilled and reemployed, with only a few having to take funded early retirement. There is a simple story to tell here: working together and planning properly can mean no-one gets left behind. Here the Albanese Labor government has learnt well and will not be making the mistakes of governments past. This Labor government is taking strong action to protect our environment, address climate change, transition our economy and, all the while, support working people, working together so no-one gets left behind.

This bill will establish a new independent statutory authority to promote orderly and positive economic transformation as the world decarbonises. The bill sets out the detailed functions, powers and governance arrangements for the authority and establishes a framework for the use of pooled redeployment arrangements when coal- or gas-fired power stations close. As a fossil fuel based economy, the economic, employment and regional implications for Australia of the world decarbonising could be significant if it's not well managed. Australia is in a unique and privileged position. With our abundance of renewable energy sources, we're home to every metal and critical mineral essential to get to net zero technologies. This is especially true for our regions. They are the key to our future net zero economy. Our opportunity is here, and we must seize it—and, my word, we are.

The authority will be a partner on behalf of the Labor government, working with industry and investors in getting big transformational projects happening. Most importantly, as is always front of mind for this former president of the ACTU, this bill will support workers in emissions-intensive industries to access new employment and acquire new skills to improve their employment prospects. This bill has our workers and our regions at its core. As we transition, the authority will work with employers, unions and others to support workers into new opportunities. We know there are big changes to come in our economy and change can be daunting, but the authority will be there side by side with our workers, our regions and our communities. Importantly, the authority will work with First Nations people so they can participate in and benefit from the economic shift to net zero emissions, working together so no-one gets left behind.

In my own community of Cooper in Melbourne's north, climate change is one of the most important issues. I have many groups of climate activists, like Darebin Climate Action Now and the ACF Darebin group, who are staunch advocates and activists. They volunteer their time to raise awareness about the climate crisis and advocate for governments of all levels to take bold action. They live their values and are incredibly environmentally conscious. They shop local. They ride bikes. They use public transport. They buy clothes second-hand. They are the definition of reduce, reuse and recycle. But, beyond that, they are playing an important role in helping me develop policy and helping this Labor government develop a broader climate policy for the future. They understand and support Labor's plan to reach 82 per cent renewable energy by 2030 and our significant investment in green technology.

There's already been a 25 per cent increase in renewables in the National Electricity Market since we came to office. A few weeks ago, we saw a big boost to renewables in Victoria and Tasmania: a combined 1.7-gigawatt piece of the six-gigawatt pie in Australia's largest ever tender for renewable energy. Of that, 1.4 gigawatts is for my wonderful home state of Victoria, which is enough renewable energy for 700,000 homes. This will give confidence to investors to build renewable energy generating projects sooner rather than later. Also, a fortnight ago the budget delivered a massive investment in renewable energy. We've allocated $22.7 billion to grow clean industries like critical minerals, renewable hydrogen and clean energy manufacturing. This is a once-in-a-generation investment from the Albanese Labor government that is going to make such a big impact.

Climate groups have come out in support of this announcement. The Climate Council called this 'a decisive turn towards Australia's clean energy future,' with the federal government 'charting a course to power past the end of fossil fuels'. The Smart Energy Council CEO said: 'This budget changes Australia's future,' and, 'This charts the pathway to Australia's prosperity and comparative advantage.' And do you know who else has come out in support of our Future Made in Australia plan? The Australian Council of Trade Unions. It says it's 'set to create secure manufacturing jobs and develop new industries as part of the government's objectives of turning Australia into a clean energy superpower'. The Labor Party, the union movement, the climate movement and industry are all in lock step. Climate action and action to support working people, jobs and the environment are working together so no-one gets left behind.

It is clear that we need to continue to move towards low-emission technology with renewables and not prolong the life of fossil fuels. Renewables are the future of Australia. There's simply no other option. The transition to renewables must be rapid, but it must be just. The transition to renewables must be equitable. We can't leave anyone behind—not a single worker or their family, not a single region or community. I owe it to the people of Cooper, to our workers, to those I have fought alongside and to all those I will continue to fight for to stand here today in fierce support of this bill—a bill I've fought for for a very long time, a bill that will change the story for a future powered by renewable energy, a bill shaped by the voices of workers, a bill that will bring us together to build a new economy with decent jobs and a clean future, a bill where no-one is left behind, a bill that shows we are about real change.

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

It's only a few days since the world's leading IPCC scientists said that we are now expecting the world's temperature to rise by at least 2.5 degrees and announced their despair at the lack of progress being made by world leaders. On the same day that those dire predictions of an over-2½-degree world were being reported, there was irony in the government announcing its gas strategy to accelerate new fossil fuel projects in this country and lock in gas and fossil fuels till well beyond 2050. The International Energy Agency, scientists, my constituents in Warringah, many people around Australia and, quite frankly, anyone with common sense knows that, if the aim is to reach net zero and limit warming to 1.5 degrees, we must not have any new coal or gas projects.

It is in that context that today I consider this bill for the Net Zero Economy Agency. It's a big title, and it's an ambitious task for an agency, but I have to point out that there is a catch, and I would ask that no-one be misguided in the breadth of what is intended to be caught by this legislation. I'm hearing many in this place talk of it being revolutionary and of no-one being left behind, but the reality is that many people are being left behind. There is to be a very cherry-picked approach to who will be assisted in this transition.

The bill aims to coordinate Australia's orderly transition to net zero and introduce a long-overdue support framework to transition coal- and gas-fired power station workers. I repeat: it will assist to transition only coal- and gas-fired power station workers—no other workers in other industries, only those relating to coal- and gas-fired power stations. It's very niche, as Australia transitions away from fossil fuel generated energy. It's very limited as to which workers it is designed to assist.

One of the bill's objectives, to support workers in emissions-intensive industries to access new employment, is not supported by the bill's operational provisions. The authority will establish the Energy Industry Jobs Plan, which will support employees impacted by the closure of some coal-fired and gas-fired power stations through pooled redeployment plans. But this support is narrow. It not only excludes many trade-exposed industries but also permanently locks them out in the way it has been drafted. The frustration is that we have been engaging with the minister and the government in trying to have amendments that would properly reflect the intention of many of the speeches in this place from government, but they are refusing to amend the legislation to actually give it this genuine purpose. At the moment, it focuses only on coal- and gas-fired power station workers and their directly associated coal mines, and it ignores every other coal mine, LNG plant and other trade-exposed industries. You have to wonder: why? Is it because the government on one hand wants to beat its chest that it's moving on its transition to net zero economy, but on the other doesn't actually want to admit to specific communities that are reliant on fossil fuel industries that their industries and jobs are going to go? Rather than having an honest conversation with all communities, we have this cherry-picked approach to transition.

I think it is unacceptable to create grand objectives to transition Australia's economy to a net zero economy—something that will take time, with evolving needs, particularly when it comes to just transition, though I strongly support the intent—but then fail to provide the authority with the teeth and the scope to actually achieve that objective. The government's position is to focus on industries that have defined closure timelines, as is the case for coal-fired power stations. The government is completely ignoring the fact that other industries are also facing closure as we transition to net zero economy. It's political doublespeak, not wanting to acknowledge that some communities are going to need to transition. It's this idea that we are going to have gas exports forever, that there will be thermal coal exports forever—there won't be. They have to go, and it is a duty of government to ensure those communities and workers are not left behind and that they are assisted in their transition.

The broader issue, which is I think really disappointing from the government in relation to this bill, is the government's failure to acknowledge and properly manage Australia's inevitable decline in coal and gas and other emission-exposed industries of export. That decline is inevitable. Look no further than Australia's largest mining companies. BHP has divested from its coal assets, and even Glencore, Australia's largest coal miner, is committed to a responsible phasing down of our thermal coal production and has already closed mines in Australia. This bill must align its transition rhetoric with adequate provision to include all coalmining communities. It is selling them a lie to tell them that their jobs will be there forever in an export sense.

We have to have an expansion of the mechanism in this bill to ensure that all workers are genuinely assisted. At the moment, there is no mechanism to expand trade-exposed employers within this bill. I want to be very clear for all members of government: there is no mechanism within the bill as currently drafted to expand that scope. That means that neither the authority nor even the minister can expand support—as intended by this bill—for other industries or workers that we know are impacted by the transition to net zero and that will need support. It just doesn't make sense why there is a refusal by the government to amend this and to acknowledge this failing of the legislation as it currently stands.

I guess it's a political thing. I don't know if it's because they don't want to acknowledge that those transitions are going to happen for those communities, but it makes it very disappointing when it comes to the scope of this legislation. I know the government does not want to acknowledge to certain communities that, ultimately, the export of coal will go—that those jobs will be lost. I know that it's difficult, politically. But an honest conversation is needed, not only for the just transition for individuals and communities but for the sensible economic transition of our economy, with the many renewable job opportunities that we need filled.

I'll just give some numbers: approximately 10,000 jobs are covered by the Energy Industry Jobs Plan under this bill compared to those that aren't—but which should be and could be with the amendments that I and many others are proposing. That's 112,000 jobs from export coalmines, oil and gas which are not. And an additional 90,000 geographically dispersed industries, such as mechanics and gasfitters, are also excluded from assistance under this legislation. Just so we are very clear: less than 10 per cent of the jobs that should be covered are in fact covered by the scope of this legislation, and there's no mechanism to increase that number.

Of course we must transition to net zero. Transition is not about closures and job losses but about vast opportunities as we transform our economy. In Warringah, people are ready for Australia to ride that clean energy wave with policies—and I support the government on its Future Made in Australia policy and commitment. Warringah businesses are embracing the transition to renewables and enjoying the financial benefits. But we need a workforce to meet the demand and opportunity that these policies will bring. The Business Council of Australia predicts that there will be some 395,000 clean export jobs created in Australia, and this authority can work with communities and workers to help them seize those opportunities. We know it works; when regions, communities and workers are consulted to codesign solutions, they are successful.

We have success stories already. The Latrobe Valley Authority and the economic growth zone created 2½ thousand new jobs, and contributed to the generation of more than $99 million in private investment. In Germany's Ruhr region, the transition from a coal centred economy was successfully managed through significant investments in infrastructure, education and economic diversification. These created new opportunities in manufacturing, technology and services. The Canadian government is also actively phasing out coal-fired power, supporting affected workers and communities. They're focusing on community engagement and economic diversification. And it's not just coalmining or fossil fuel power stations that should be included in the scope; it should be extended to include workers around the country, including car mechanics, whose industries will transition. The opportunity is huge for the Net Zero Economy Authority to link its strategic goals with a just transition of workers impacted by any industry facing closure or transition. It will be key to coordinate between the public and the private sectors, communities and First Nations people to ensure that the transition is effective and efficient, and maximises the co-benefits for the regions that are impacted. This is what we are seeing here: a cherry-pick of one small 10 per cent of industry that really deserves the assistance.

It's prudent for the Net Zero Economy Authority to engage widely and determine the best policy levers that will unlock private capital to bring trillions of dollars of investment into the Australian economy. It can enable value-adding to Australia's vast critical minerals industry; production of green iron and steel; and manufacturing of solar goods and specialised batteries, and it can ensure that we are competitive internationally. It will improve a range of measures. Within its limited scope, I know that it will be effective—from production tax credits to contracts for different local content requirements and government procurement. Those must be balanced to provide the necessary market support to be effective.

The US has seen a huge surge of investment because of a very attractive legislative environment, leading to trillions of dollars in private investment. We know that China has built its renewables manufacturing sector on government subsidies, giving EV-maker BYD alone a US$4 billion start-up subsidy. The EU has dedicated 578 billion euros of its 2021-2027 budget to climate-related spending, facilitating a clean transition. And Japan, Korea and Canada have also made substantial commitments to their transitions. If we get it right, a $100 billion investment over 10 years could deliver $300 billion in renewable exports and keep Australia competitive and playing to our strengths.

Warringah and the Northern Beaches are becoming a hub for businesses in the renewable space that will benefit from the Future Made in Australia strategy. There is vision and there is appetite for a clean and profitable future. The bill provides a good framework to support those existing businesses and future startups. So, whilst the Net Zero Economy Authority will play an important role in Australia's history, as detailed in legislation I've brought to this place in the past, like the climate change bill, we must support a smooth and sensible transition to a carbon-neutral economy.

With amendments, I am confident that an independent net zero economy authority will enable us to make the most of our natural advantages while creating opportunities and well-paid smart jobs. However, it is ironic, as I said at the beginning, that the first bill before the parliament following the government announcing its Future Gas Strategy is this one. One of the many functions of the proposed net zero authority is to promote coordination and consistency in the design and implementation of Australian government policies, programs and plans. There's an irony in that. It's not an easy task. On one hand, we're transitioning our economy away from polluting coal and gas and creating a renewable future made in Australia economy. It's hard to reconcile that with the government's support of new fossil fuel projects and ongoing approvals by the environment minister to coal and gas projects well beyond 2050.

Ensuring we maximise the opportunities of net zero requires coordination and consistency in the government's policies. You can't have it both ways. It requires engagement across the economy with the private and public sector, communities, First Nations groups and unions. The Net Zero Economy Authority will ensure that Australia's transition is orderly for some workers. But, if we are going to meet our emissions reduction targets and actually what we need to keep our communities safe and healthy, then we have to go beyond this little narrow bit. The current bill, I would say, finally, is heavy on aspiration and broad objects, but it's light on detail and specifics. It desperately needs amending to genuinely fulfil the purpose it is intended to.

Alison Byrnes (Cunningham, Australian Labor Party) Share this | Link to this | Hansard source

The Net Zero Economy Authority Bill 2024 and Net Zero Economy Authority (Transitional Provisions) Bill 2024 seek to establish an independent authority tasked with overseeing the transition to a net zero economy. This means Australia needs to work towards achieving a balance between the greenhouse gases we emit and those we remove or offset. The urgency of the climate crisis demands bold and decisive action, and the Net Zero Economy Authority Bill represents a crucial step forward in our effort to combat climate change and secure a prosperous, resilient future for generations to come. This action aims to stop the ongoing progression of global warming and mitigate its devastating effects.

The Albanese Labor government is establishing a new net zero economy authority because we want to ensure Australia and regions like the Illawarra prosper in the future net zero global economy. The shift to net zero is already happening. Australia, along with the rest of the world, is reducing greenhouse gas emissions to net zero by the middle of the century. The establishment of such an authority is not merely symbolic; it is a logical recognition of the scale and complexity of the task at hand.

Climate change is not a problem that can be solved by individual action alone. It requires coordinated, systemic change across all sectors of society, from government and industry to communities and individuals. The Net Zero Economy Authority will play a pivotal role in driving this transformation. It will have the mandate and the power to advise, regulate and coordinate efforts across sectors, ensuring that we stay on track to meet our net zero targets and fulfil our international commitments under the Paris Agreement. The authority would promote logical and positive economic transformation by helping to facilitate the achievement of Australia's greenhouse gas emission reduction targets. Assisting Australia's transformation as a renewable energy superpower and ensuring Australia's regions and our workers are supported through and benefit from the associated economic transformation will be the key priorities. The transition to net zero emissions will mark one of the most profound economic changes since the Industrial Revolution. The substantial and widespread efforts worldwide to decrease emissions will reshape our industries and our economies fundamentally.

This new authority, with its focus on managing economic change, complements over $40 billion in government initiatives to reduce emissions and become a renewable energy superpower. These include the $20 billion Rewiring the Nation program to modernise our electricity grid and infrastructure so it can support a renewable-energy based energy system, the $1.9 billion Powering the Regions fund to support the decarbonisation of existing industries and the creation of new clean-energy industries, the $6 billion critical minerals facility to grow our critical minerals production sector, the $2 billion Hydrogen Headstart program to support development of large-scale renewable hydrogen projects and the $15 billion National Reconstruction Fund to diversify and transform Australia's industry for a net zero economy.

Our steelworks in the Illawarra, BlueScope, which is located in the suburb of Port Kembla, is a significant industrial site for the region, contributing millions to the local economy and generations of employment. Having operated for decades, it plays a vital role in steel production, supplying materials for various industries and infrastructure projects. Our renewable energy transformation will require 5 billion tonnes of steel between now and 2050, and our steelworks will be an integral part of achieving this.

Whilst the Illawarra has heavy industry ingrained in its core, it is also uniquely positioned to become a renewable energy superpower to help achieve a net zero economy. The Illawarra region has attracted significant attention as a thriving centre for pioneering renewable energy solutions, and spearheading this companies are companies like Hysata, which I have spoken about in this parliament before. They are world renowned for the production of the world's most efficient hydrogen electrolysers, having won an award at COP28 and having just achieved the Southern Hemisphere's largest ever series B capital raise of $172 million. These electrolysers will play a crucial role in the decarbonisation of heavy industry and large-scale hydrogen production. We also Sicona Battery Technologies, who have made significant strides in the development of next-generation lithium-ion batteries. Their cutting-edge technology promises enhanced performance and durability, crucial for storing renewable energy and powering electric vehicles. We have Green Gravity, who have ingeniously repurposed retired mine shafts to generate kinetic energy. The innovative approach not only provides a sustainable source of power but also repurposes existing infrastructure, demonstrating our region's commitment to both environmental stewardship and economic revitalisation.

The Net Zero Economy Authority will ensure we're looking after Australia's workers and our regions as we transform from a fossil fuel based economy to a renewable energy superpower. This recognises that the way we navigate economic change is just as important as reaching the destination of the net zero economy. The authority will be a partner on behalf of the government with industry and investors in getting big transformational projects happening—projects that decarbonise industrial facilities, build new industries and grow the future economic base for regions like the Illawarra.

In recent years, the Illawarra region has emerged as a dynamic hub for groundbreaking advancements in renewable energy technology, marking a profound shift towards sustainability and resilience. With lush landscapes and vibrant communities, the Illawarra is transforming into a hive where innovation thrives, paving a clearer way towards a cleaner and greener future.

Green hydrogen is expected to supply 10 to 15 per cent of energy in a net zero global economy and contribute 20 per cent of the total abatement required by 2050 for net zero. I'll go back to a company, Hysata. Hysata's innovative electrolysers will bring down the cost of green hydrogen and reduce energy usage, as they operate at 95 per cent efficiency, compared with around 65 per cent efficiency for other modern electrolysers. This is huge for industry, but it's also huge for the Illawarra. It really puts us on the map.

Projects like this are part of securing Australia's place as a renewable energy superpower and securing the well-paid secure jobs that come with exporting cleaner, cheaper, reliable renewable energy to the rest of the world. With the industry announcing that 24 coal-fired power stations will be shutting by 2030, under the watch of those opposite, the era of coal-fired power is drawing to a close. Those opposite had no plans for what would be replacing their electricity and no plans to help the huge workforce supporting these power stations as they transition.

As the Prime Minister has said:

We are home to every metal and critical mineral essential to net zero. Our workforce is skilled and valued, our safety standards are the highest in the world and we have a proven track record as a reliable producer and exporter of energy and resources.

A skilled workforce is the backbone of a thriving economy, driving innovation, productivity and competitiveness across industries.

One of the key aspects of achieving net zero involves the expansion of renewable energy infrastructure as well as the upgrading of energy grids to accommodate those new sources of power. In late 2023, the Albanese Labor government, through the Australian Research Council, funded the establishment of a Training Centre in Energy Technologies for Future Grids at the University of Wollongong. Amongst other things, this centre will develop innovations that will facilitate the integration of renewable energy into the electricity grid and maintain grid stability. It is important that renewable energy provide a predictable and sustainable source of energy. The university's research in this area could prove vital to this process.

A skilled workforce, like the one we are so fortunate to have in the Illawarra, is essential for the construction, installation, and maintenance of renewable energy systems, including engineers, technicians, electricians and project managers. Training programs and apprenticeships can help develop the necessary skills and ensure that workers are equipped to meet the demands of our growing sector. This is why I secured two crucial facilities for the Illawarra: the $10 million Energy Futures Skills Centre at the University of Wollongong and the $2.5 million renewable energy training centre at Wollongong TAFE. As Australia's fleet of power stations inevitably close, the Net Zero Economy Authority will work with employers, unions and others in our community to support workers into new opportunities. This is not just the right thing to do by workers; it also ensures we are making good use of the highly skilled workers we need more of in the net zero economy. The authority will help communities navigate this change, especially in regions where change will be significant.

This bill will be promoting innovation and investment in low-carbon technologies and infrastructure. From renewable energy and energy efficiency to sustainable transport and land-use practices, we must harness the power of innovation to drive the transition to a cleaner economy. It will engage stakeholders at all levels of society, from business leaders and policymakers to community organisations and grassroots activists. Climate action is a collective endeavour, and the Net Zero Economy Authority will work to build partnerships, foster dialogue and mobilise support for climate solutions. This will ensure that no-one is left behind in the transformation to a net zero economy. We must prioritise equity and social justice, recognising that the burden of climate change falls disproportionately on the most vulnerable people among us. It will be guided by principles of fairness and inclusion, striving to create opportunities for all to thrive in a sustainable future.

The Net Zero Economy Authority Bill 2024 represents a historic opportunity to chart a new course towards a brighter and more sustainable future. It is a testament to our shared commitment to leaving a legacy of hope and resilience for future generations.

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

For some time now, my community in North Sydney has been calling for action to mitigate the impacts of climate change, while supporting economic opportunities in emerging green technologies and industries. We've spoken about it as gearing our nation towards a forward-facing economy, and I welcome this opportunity to speak about the Net Zero Economy Authority Bill 2024 today.

Transforming the Australian economy to net zero emissions is one of the biggest opportunities and challenges of our time. Indeed, former US senator and secretary of state John Kerry has likened the challenge to a wartime effort, highlighting the national security threat climate change poses and the type of mobilisation required to address it. Much of this transition will play out in regions outside our capital cities, where the bulk of Australia's industrial base is located. While I represent the urban electorate of North Sydney, my community elected me on a platform of ensuring that the transition to net zero is fair and equitable. I also have a deep personal connection to regional Australia, having grown up in north-west New South Wales, so I know exactly how pivotal one industry can be to an entire community and how important it is to ensure that, as industry transforms, communities are taken along for the ride. Ultimately, though, whether it's my electorate of North Sydney, or my hometown region of northern New South Wales, both communities are looking to capitalise on the strong economic growth that should come with this transition to a net zero carbon economy. Both communities see the potential that comes with our nation delivering on our climate targets and ensuring regional communities thrive. And both fundamentally recognise the importance of building communities that are climate-safe, regenerative, economically sustainable and socially just.

Australia's regions, workers and communities stand to benefit from the global shift to green technologies and energies, but only if the transition is managed well and with the fair distribution of wealth generated from the transition across our whole economy. Transition authorities, such as the one proposed in this legislation, have proven to play a crucial role in helping countries like Germany, Canada, Spain, the United Kingdom and the United States all manage the impacts of a changing energy sector. Given this, where there's a lesson for us to learn from those countries, I suggest that we learn it well. I broadly welcome the Net Zero Economy Authority Bill 2024 then, along with its proposal to establish the Net Zero Economy Authority for the purposes of coordinating Australia's transformation to a net zero emissions economy. However, for the authority to achieve its goal of helping Australia to meet its greenhouse gas reductions targets, and to support the transition to a net zero emissions economy, its establishment must be accompanied by strong and clear climate targets; policies that provide clear direction and empowerment; and appropriate settings from the government. Without the policies in place to reduce emissions, including phasing out fossil fuel extraction and use, and clear sector-by-sector plans to manage an equitable transition, this authority will not achieve its goals. Additionally, I believe the bill could be strengthened by taking a whole-of-community approach; expanding the scope of the authority beyond coal regions to other industries affected by climate change and the energy transition; ensuring an independent board appointment process, where members are appointed by an independent selection panel; ensuring long-term funding for the authority; and avoiding overlap with existing industrial relations frameworks. I note my crossbench colleagues, including the members for Mackellar and Indi, have proposed amendments to achieve many of these things, and I support their calls and commend their amendments both to the minister and the House.

The core objectives of the authority as established by this legislation are appropriate. Specifically, I welcome the focus on promoting investment in decarbonisation initiatives, especially within energy-centric regions—the facilitation of public and private sector participation and investment in greenhouse gas emissions, reduction and net zero transformation initiatives is good. At the same time, helping employees across closing coal- and gas-fired power stations, and their affiliated employers who are impacted by the net zero transformation, to transition to a new opportunity is also welcome. Harmonising and coordinating government-wide policies aimed at achieving net zero emissions and achieving Australia's greenhouse gas emissions reduction targets is also good, as is building community understanding, confidence and engagement with the net zero transformation, and supporting First Nations communities in gaining advantages from this transition. Finally, engaging with the broader public to enhance understanding and involvement in the transition process by encouraging, supporting, developing and delivering educational and promotional initiatives is sorely needed.

Ultimately, as a nation, we are incredibly lucky when it comes to our clean energy endowment. Australia enjoys many comparative advantages in the transition to clean energy. We have a higher ratio of renewable energy resources to domestic demand than many other countries. We have vast access to mineral resources that will remain in demand, including some that are crucial to the energy transition, and we have the existing expertise to mine them. We also enjoy a proximity to growing Asian markets. With our massive landmass and unparalleled solar and wind resources, we are truly well placed to become a renewable superpower. But, to realise this opportunity, we need to step into it with purpose and in a coordinated fashion, ensuring no person, no community and no economic sector is left behind.

Beyond Zero Emissions estimates that Australia can grow its revenue from new green exports to $333 billion by 2050, which is almost triple the value of the 2019 fossil fuel exports. This will only be achieved, however, if our approach to transitioning our industries is inclusive, participatory and consultative. A top-down planning model will not work, and we must recognise the unique needs and opportunities of each community. Ultimately this revolution must be led by regional communities, not foisted upon them.

To effectively manage the changing landscape of Australian industry, ensuring and maintaining a strong social licence for renewable energy will be essential, and this authority can play a crucial role in ensuring that. There are, however, potential changes to the bill that would strengthen it. The first is to take a whole-of-community approach. Regional communities are often built around a core industry, and any impact to that industry has ripple effects through the entire community, to everything from the local school to the mechanic to the coffee shop. Supporting a smooth transition requires not only working with employers and employees from the impacted industries but should also extend to the broader community, to address the cumulative impacts of the change.

The Next Economy, who have worked extensively with regional communities to manage economic change, recommended in their submission to the Senate inquiry on this legislation a more holistic economic development approach to ensure long-term resilience and prosperity at the regional level. An example of what this may look like would be the authority offering structured support to small businesses in the region to take advantage of new opportunities, and investment in things like local health services, wellbeing, child care, aged care, housing, education and transport, to make communities more attractive to new people and new businesses. Ultimately what could be better for a region then becoming a hub for new, in-demand skills development? It would be incredible to see this new authority play a role in identifying that sort of opportunity for regional communities in Australia.

Next is expanding the scope of the authority beyond coal regions. While it makes sense for the authority to focus on regions facing coal-fired and gas-fired power station closures in the first instance, ultimately the scope of the authority should not be limited to these areas alone but rather extended to be broad enough to support all regions where core industries will be impacted by climate change. These industries will include things like forestry, tourism and agricultural industries, just to name a few.

We also need a more transparent board appointment process. As the board is the key decision-maker for the authority, it is imperative that the appointment of members to the board should be transparent and free from real or perceived undue political interference. More could be done to ensure members of the board bring appropriate knowledge and expertise to the work of the authority and that the work of the board is informed by a variety of perspectives.

As it stands, the board will consist of a chair and at least five, and not more than eight, other members. Two board members must have expertise or experience in the trade union movement, and two other board members must have expertise or experience in business, industry, finance or investment. A board position should also be reserved, though, for a First Nations person, and there should be at least one board member with experience in regional development. The government should also consider reserving a board position for someone with expertise and significant standing in climate science and engineering.

It is not appropriate that the minister is responsible for appointing all board members. I also think it is a significant weakness that the guidelines for appointment do not currently stipulate that the board must include someone with deep knowledge and connections across regional and rural Australia or someone with First Nations connections. For this reason, I strongly support the amendments of my crossbench colleagues the member for Indi and the member for Mackellar to ensure the appointment of board members is independent, transparent and appropriate.

We also need more secure long-term funding for this authority. To date, $83.2 million in funding over four years has been announced for the authority, but this is not enough to ensure it can engage in long-term planning. As the Grattan Institute has stated:

To take a true place-based approach that creates real change and strengthens regional economies, the Authority must be able to take a long-term view. It will not be able to design or commit to long-term activities if it does not have budget certainty beyond three-year funding envelopes.

If the authority is expected to provide real help to communities and regions at the forefront of the energy transition, it must be securely funded. Research by The Next Economy shows the work of transition authorities and outcomes from regional communities are more successful when the authority has access to its own funding. The Grattan Institute has also recommended legislating a minimum 10-year budget for the authority to put it on a stable footing and increase its effectiveness. To secure this funding, the government should redirect subsidies from the fossil fuel industries in consumption—which, according to last week's budget, will cost our economy upwards of $44 billion over the forward estimates.

Next, the authority should avoid overlap with existing industrial relations frameworks. While the bill is designed to operate within the existing industrial relations framework, multiple stakeholders representing businesses that are likely to be affected by this bill have raised concerns with the content and practical implementation of the Energy Industry Jobs Plan in part 5 of the bill. The obligations in the jobs plan have considerable overlap with existing obligations in Australia's industrial relations framework, and clarity is needed as to how these areas of overlap and the inconsistencies will be resolved.

The bill mandates employers who are closing must offer support to their workers, including retraining, financial support and career guidance, redeployment options, and paid leave. It creates processes and schemes for pooled redundancy and redeployment to enhance worker security and mobility, and it implements a system whereby the Fair Work Commission can issue binding decisions on the specific types of support that employers are required to provide to their workers. Further clarification, however, should be provided on how these inconsistencies and areas of overlap between existing industrial relations frameworks and the Energy Industry Jobs Plan can be resolved to provide more certainty to affected employers and to avoid unintended consequences.

Finally, I reiterate that the lofty goals of this legislation will not be achieved without stronger climate policy from this government. This agency—this single agency—simply will not succeed in its goal of transitioning workers and communities away from fossil fuels if the government continues to approve and fund new fossil fuel projects without laying out a clear pathway to net zero. The Australia Institute has found there are more than 100 new fossil fuel projects planned in Australia. If all of these projects proceed, they will produce $4.8 billion tonnes of emissions by 2030, and this government have given no confidence that they intend to curtail fossil fuel use or export. They have provided considerable funding to the Middle Arm gas project, they have passed the sea-dumping legislation following lobbying by Santos, they have declined to add a climate trigger to our central environmental legislation and, most recently, they have announced a gas strategy that posits gas as a central part of Australia's energy and export sectors out to 2050 and beyond. It is essential to provide certainty for communities, workers and investors. Talking up climate action while announcing gas plans out to 2050 and continuing to approve new fossil fuel projects does not provide it.

This legislation is a good start to help guide Australia's net zero transition, but without a detailed plan, strong interim targets, and policy settings to help industries and communities a net zero authority will not alone achieve the goal of getting to net zero emissions by 2050.

Sharon Claydon (Newcastle, Australian Labor Party) Share this | Link to this | Hansard source

If ever there was a region both well positioned and, indeed, capable of tackling the real challenges of climate change, and taking full advantage of the opportunities that lay ahead, it is Newcastle and the Hunter region. I am literally on the coalface of this change. There's probably a bit of a different perspective in North Sydney, but we are full of confidence about where this government is taking this nation. Newcastle and the Hunter have literally powered this nation for generations. With the right policy settings and investments, our government is ensuring that we will continue to power Australia, albeit in new forms of energy, for many generations to come. The Albanese Labor government is absolutely committed to supporting regions like mine that are carbon-intensive economies to take full advantage of the economic and job opportunities that will come with more affordable and reliable renewable energy.

Key to this orderly and positive transition is the Net Zero Economy Authority, which the Net Zero Economy Authority Bill 2024 is establishing. The net zero authority will ensure that workers, industries and communities are supported through this change and that we will be able to seize the opportunities of Australia's net zero transition. This is a huge job. I'm not sure that all members appreciate the scale at which this transition has to keep pace. This is turning around an entire economy. This government does not underestimate the task ahead. I mean it when I say that it is our generation's industrial revolution. We don't have time for Luddites. We don't have time to repeat that. But we do not underestimate the challenges that also come with this transition.

The authority will support workers in emission-intensive industries who are affected by the net zero transition to access new employment or acquire new skills to improve their employment prospects. The authority will also be a partner on behalf of government with industry, communities and investors in getting big transformational projects happening. As the Hunter's coal-fired power stations retire, the authority will work with those employers, with the unions and with the education and training institutions to support workers into new opportunities. This is not just the right thing to do by workers, even though that's a good enough reason in and of itself. It also ensures that we are making good use of the highly skilled workers that we're going to need in this net zero transformation, because the way we navigate economic change is as important as reaching the destination of a net zero economy.

I've got to remind the House that Newcastle is not afraid of change. We have the infrastructure, the assets and the industrial smarts to be at the forefront of this transition to a net zero economy. Our existing electricity transmission infrastructure makes connecting new energy into the grid a simpler proposition than in many other regions, because we have a highly skilled workforce that is very experienced in the generation, distribution and storage of energy. This is dangerous work for lots of people. We have generations of people who are trained to handle this situation. We have a world-leading university and high-quality TAFE system. We've got a deepwater port, which is utterly essential for this transition—it's a port that's the envy of a lot of port cities around the world, I'd have to say—along with vast amounts of land that is available around that port. This is a scarce commodity for most Australian ports. That land use will be critical in standing up new industries in this region. And we have a thriving and highly collaborative business community, poised to adapt and take advantage of the opportunities ahead.

After a decade of neglect from a government that stuck its head in the sand on climate change and refused to think about how to transition away from fossil fuels and how to work with communities like mine that could be at the very forefront of the work ahead, this Albanese Labor government acknowledges the enormous task ahead, and we have a very, very different approach. We will go to communities like mine and say, 'You can be assured we're not going to be leaving your people behind.' That's why the Albanese labour government has declared an offshore wind zone covering more than 1,854 square kilometres off the coast of Newcastle. The Hunter offshore wind zone has the potential to generate up to five gigawatts of renewable wind energy—enough to power an estimated 4.2 million homes—and will be a critical source of large-scale, reliable, clean energy for our industrial base. It will create up to 3,120 construction jobs and another 1,560 ongoing operational jobs. It's why we've invested $70 million in Origin to develop a Hunter hydrogen hub in collaboration with Orica.

This was the first major agreement struck in Australia that would deliver government investments and a commitment to developing a regional hydrogen hub, and it was no accident that this first agreement took place in Newcastle. This hydrogen hub will produce 5,500 tonnes of green hydrogen per year and support good regional job opportunities. This will lead to a significant reduction in CO2 emissions from the site, and it will fuel carbon-free buses and heavy trucks. Becoming a global hydrogen leader requires significant investment, and our $2 billion Hydrogen Headstart program will provide an additional revenue support for large-scale renewable hydrogen projects. Two out of the six national hydrogen projects shortlisted come from Newcastle. That is a clear indication of the strength of our region.

Just north-west of Newcastle, plans are underway to manufacture world-leading solar cells at the old Liddell coal-fired power station. Solar panels are an Australian invention, but fewer than one per cent are manufactured in Australia. We have 3.7 million rooftops covered in solar panels in Australia now—great job—but fewer than one per cent are made in Australia. Our government wants to change that; we want a future made in Australia. Once operational, the new solar manufacturing facility is expected to deliver more jobs than Lindell did as a coal-fired power station. This is a great story to tell in carbon intensive regions like mine. And these are going to be good, secure jobs.

At the Port of Newcastle construction has started on a low-carbon manufacturing plant being built by the amazing local manufacturer MCi Carbon. It will capture CO2 direct from Orica's Kooragang Island manufacturing plant and transform it into building materials like cement and plasterboard. Once operational, it's set to transform more than 1,000 tonnes of CO2 per annum and provide decarbonisation pathways for hard-to-abate sectors, including steel, cement, mining, chemicals and manufacturing. These are all things that are rich in my area and hard to abate. Central to this renewable energy development is the Port of Newcastle. The government has invested $100 million into the port to ensure its hydrogen readiness and to create a landmark clean-energy precinct. For the port, where coal currently represents 94 per cent of our trade exports, the need to diversify has never been more important. Let me say it again: we've got a lot of skin into this game. Novocastrians are up for the change. We will help lead the change. We will help show our metropolitan cousins how it's done.

The final piece of our puzzle is, of course, skills and education. As we plan for the renewable energy focused future, we cannot overestimate the importance of skills and education to the development of our region. Education and training will be critical to meeting the demands of the new energy sector and our community, and that includes ensuring our higher education facilities, like the TAFE and the University of Newcastle, remain affordable and accessible throughout the Hunter region and are focused on equitable outcomes. We must make sure that our educational institutions are aligned with principles of equity to deliver good outcomes for both industry and the community. The Albanese Labor government know this. It's why we provided $16 million to the University of Newcastle to establish a new energy skills hub. It's why we're investing in TAFE centres of excellence to help deliver a skilled workforce for the future. It's why we're investing in more than 600,000 fee-free TAFE places in priority skills areas, 60 per cent of which are being taken up by women. We're supporting new energy apprentices by giving them $10,000 over the course of their apprenticeship to relieve cost-of-living pressures. The Net Zero Economy Authority will be key to this.

As I said, the authority will be there to support workers in emissions intensive regions to access new employment and acquire skills to take advantage of the net zero transformation. It will support, develop and deliver educational initiatives for the purpose of promoting an understanding of Australia's transition to a net zero emissions economy and support social licence for this transition. I don't think any of us in this chamber should underestimate the challenges ahead.

In the generation, distribution and storage of electricity, there is now a great opportunity for us to disrupt what traditionally has been a male-dominated sector. When I visited Denmark and north-east Scotland to look at their offshore wind industries, I couldn't help but notice that they remained—in the case of Denmark, despite all of the great social policy settings that exist in Nordic countries—very male dominated. With the historical shift from the offshore oil and gas industry to renewables, we in Australia have an opportunity to break that cycle and make sure that women are centred in the renewable energy sector. That makes good economic sense for us. It's why it is supported by local Hunter businesses as well as the big nationals: the Business Council of Australia, the Australian Council of Superannuation Investors, the Climate Council, the Australia Energy Council, the Australian Industry Group, the Clean Energy Council, the National Farmers Federation, ACOSS, the ACTU, the AMWU, the MUA and the MEU.

As I said, in Newcastle we're not afraid of change. We have been through major industrial upheavals in the past and we're not intimidated by change on this scale. When BHP closed its doors in Newcastle, some 25 years ago, many people here and elsewhere wrote us off. At BHP's peak, 11,000 people worked there—generations of men, including my father, from Newcastle and right across our region. When someone employs 11,000 people, it's a big deal when they shut their doors. While this significant employer and part of our local community was suddenly gone, through a decision made in a boardroom overseas, we Novocastrians picked ourselves up, retrained and diversified. We took on new jobs in new industries. Growth and innovation have now made health and education my two biggest employers. Newcastle has continued to flourish. I know that, like in that moment in 1999, Novocastrians are again ready to embrace the new challenges and opportunities ahead.

All this is why the federal government sees Newcastle and the Hunter as such a central place in our energy transformation, and it's why the Net Zero Economy Authority will be so vital to this transition. I give my full support to this bill.

Zoe Daniel (Goldstein, Independent) Share this | Link to this | Hansard source

The member for Newcastle is right when she says this is an immense job. The scale of it must be acknowledged, but so must the urgency. In a bid to make up for lost time and the competition for investment provoked by President Biden's massive Inflation Reduction Act, the budget bet more than $22 billion to try to get Australia deeper into the clean tech race. The Net Zero Economy Authority is another piece of the process, as we try to make up for lost time. What we know is that if we're going to succeed, communities affected by the forthcoming transformation of the economy must be brought along with the rest of us. What we also know is that unless affected communities are treated with dignity and respect, the entire shift to a cleaner, greener future could be put at risk. We're already suffering because of the re-weaponisation of action on climate change.

Many Australians will remember Al Gore's 2006 documentary An Inconvenient Truth as one of the first moments when the enormity of the climate change challenge began to sink in. These early national policy debates set in motion what would become a dominant theme in Australian politics for the ensuing two decades, and the climate wars have been, and unfortunately remain, among the most divisive fault lines in our nation's political history.

In 2022, the Prime Minister was sworn into office in part on his pledge to end these wars, and, as I said earlier, the Net Zero Economy Authority is one such piece of the process to get on with the job of mitigating climate risk and addressing climate impact. It represents a step in the right policy direction, and it should certainly become a standalone statutory authority. The proposed arrangement is a solid foundation towards a just transition in Australia, but it's just that—a foundation. More can be done now to soften the impact of fossil fuel industrial closure and to pre-emptively prepare an uncertain workforce for this transition. Workers deserve certainty and so does business.

I support the member for Indi's amendments to expand the authority's remit to cover the gamut of affected industries. Once established as a statutory authority, its advice will continue to provide strategic direction to future governments on issues related to cultivating efficient public-private investment and support for a fossil fuel workforce transition. Given the influential powers which the authority's prospective CEO would wield in applying to the Fair Work Commission for a community-of-interest determination, the CEO office holder should be appointed other than by ministerial direction. Australians know all too well the dramatic climate policy shifts which have occurred following a change of government or unpredictable global circumstances. Australia's renewable transition should be sheltered from politics and the day-to-day culture war that often fuels it.

The government's approach to transitioning to net zero is based on a six-sector strategy. As it stands, substance has only been provided for just one of these six—agriculture. Business is attracted to certainty, but the level of policy detail released by the government on our net zero transition is insufficient to provide this. This makes it difficult as Australia considers the net zero transition as a national mission, and that requires deeply entrenched social licence. Broad coordination across government, industry, academia and education is essential to not only achieving our net zero transition targets but ensuring that our country is better off for it and that people understand it. We should help all Australians understand the sense of urgent purpose in this mission, from a fresh chemical engineering graduate to a woman involved in solar panel installation, to corporate CEOs and school students of all ages.

A capable, resilient and specialised domestic workforce is required to support maintenance of this transition and this new renewable energy network. Right now government could provide, for example, electrical apprenticeship training and supervised job placements necessary to build the capable workforces that we need. It would be a start if the Commonwealth coordinated an approach which sees regions sharing in these benefits. In fact they must if we're to cultivate the genuine social licence for regional communities living in the vicinity of renewable energy facilities such as solar and wind. Right now, better community outcomes like lower energy prices, expanded community services and new local infrastructure could be delivered for these residents.

When it comes to climate change more broadly, I think it's fair to say that members of the Goldstein community that I meet, and there are many of them, are somewhat confused about the approach of this government. At the 2022 election they thought they were getting a government which took the issue seriously, but when they hear of the recent decision of the government to lock in a significant dependence on gas until at least 2050, they do wonder whether Labor really is serious because, on the face of it, that announcement is bad news for all of us working for a cleaner, greener future.

By contrast, this legislation is a step in the right direction. I will support this legislation and, in doing so, I encourage the government to remain future focused rather than to be focused on the past.

Sharon Claydon (Newcastle, Australian Labor Party) Share this | Link to this | Hansard source

The debate is interrupted in accordance with standing order 43. The debate may be resumed at a later hour.