Josh Wilson (Fremantle, Australian Labor Party, Assistant Minister for Climate Change and Energy) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

Today the government is proud to introduce the Future Made in Australia (Guarantee of Origin) Bill 2024.

The bill is accompanied by a primary legislation package that implements the Guarantee of Origin scheme, including two additional bills, namely:

The bill establishes two certification streams:

They are a crucial component of the $22.7 billion Future Made in Australia program.

It is important that this bill is brought forward now.

This is a decisive decade for achieving Australia's prosperous, responsible and sustainable industrial evolution.

The global transition to net zero is under way.

Countries need more clean energy, and they need to achieve the decarbonisation of products and processes across the full breadth of our economies.

In other words, the world needs what Australia has as our national strengths. From critical minerals to wind and solar resources, to our highly skilled workforce and our innovative business culture.

From that foundation of strength, our nation can leverage this transition and realise our potential as a renewable energy superpower.

We have abundant clean energy resources.

We can unlock crucial investment in these industries with the best supportive framework.

This bill creates that framework.

It will form the emissions accounting backbone for Australia's net zero industries.

In order to remain competitive in new and emerging domestic and global markets, Australian producers will need to account for the emissions embedded in products.

Under this voluntary scheme, the foundational certification will enable Australian producers to demonstrate the emissions intensity credentials of low-emission commodities.

Over the last decade, demand from competitive businesses across the economy for renewable electricity certificates has grown, supporting investment in new renewable energy projects.

Enabling this growth will further accelerate emissions reductions.

This bill provides for a nationally consistent certification mechanism that is backed and administered by the Australian government.

This bill is just another way that the Australian government is providing Australian businesses and investors with the regulatory certainty needed to support and encourage investments.

It builds on and complements the important initiatives this government has already put in place to secure Australia's low emissions future—such as the Capacity Investment Scheme, the reforms to the Safeguard Mechanism, and the Future Made in Australia agenda.

The Product Guarantee of Origin scheme will issue digital certificates that allow producers, exporters, and consumers to prove where a product was made.

The certificates will also verify the emissions intensity associated with a product's production, transport, and storage.

The certificates will be used by other Australian government initiatives to verify emissions including the proposed Hydrogen Production Tax Incentive, unlocking additional support and other opportunities for industry participants who opt into the scheme.

These certificates will first be issued for production of hydrogen, and expand in future to products such as low carbon liquid fuels and green metals.

The Renewable Electricity Guarantee of Origin certificates will provide information on when, where, and how renewable electricity was produced.

The existing Renewable Energy Target (RET) has played a significant role in accelerating the generation and use of renewable electricity in Australia for 25 years, but it is due to sunset in 2030.

The Renewable Electricity Guarantee of Origin in this bill is designed to operate alongside the RET, creating a seamless transition for its users beyond 2030.

For example, it expands the RET's design strengths as an effective certification framework, while expanding its scope and flexibility to respond to an evolving market.

It expands the types of electricity certified as renewable in Australia.

It will also certify electricity dispatched from storage, electricity for international export, and 'below-baseline generation'—in other words, it allows certification of electricity generation from renewable energy facilities regardless of their age, which is a marked change from the operation of the RET.

It facilitates the buying and selling of certificates to make credible renewable electricity use claims.

It also enables certificate demand and value to be market-driven by voluntary purchases.

Each of the certification streams have been designed to address the needs of both producers and consumers of low-emission products and of renewable electricity.

Through extensive consultation, the bill has incorporated industry feedback on the design and operation of certificates.

I do want to acknowledge that, as with all significant reforms, this scheme has come forward through the very hardworking application of public servants in the Department of Climate Change, Energy, Environment and Water over the last four years.

Each of the certification streams—the GO and the REGO—will be administered by the Clean Energy Regulator, promoting market confidence in their integrity. The regulator will publish the certificates on a public register.

The government will further consult with stakeholders on subordinate legislation setting out the details of the Guarantee of Origin scheme following this bill's passage.

The government is committed to launching the scheme in 2025 and all of the stakeholder engagement has emphasised the importance of delivering the GO and REGO framework on that timetable. It is a tight timeframe, but we are prepared and ready to achieve it.

Australia can only reach our decarbonisation goals through the development of new industries and by unlocking new export and trade opportunities.

This bill will position Australia as a high-quality and high-integrity supplier of renewable electricity and low-emissions products. It will promote new investment and innovation.

It will increase Australian exports and Australian jobs.

It is a critical piece of the work needed to continue Australia's leadership in tackling dangerous climate change and in achieving our potential as a renewable energy superpower.

Debate adjourned.