Christine Milne (Tasmania, Australian Greens) Share this | Hansard source

I move:

That this bill be now read a second time.

I seek leave to table the explanatory memorandum relating to the bill and to have the second reading speech incorporated in Hansard.

Leave granted.

The speech read as follows—

RENEWABLE ENERGY AMENDMENT (INCREASED MANDATORY RENEWABLE ENERGY TARGET) BILL 2008

In October 2007, the then Labor Opposition announced a key element of their election policy platform on climate change—lifting the Howard Government’s Mandatory Renewable Energy Target from its pitifully and unpopularly low 2 per cent up to 20 per cent. The Greens, many environment groups and many people in the community welcomed this move as a significant improvement, although not as much as is both achievable and necessary.

Since that time, however, there has been very little progress toward legislating the promised renewable energy target. All we have seen is a discussion paper which disappeared into the black hole of COAG.

Today, in the week of the anniversary of the election, I am pleased to introduce the Renewable Energy Amendment (Increased Mandatory Renewable Energy Target) Bill 2008, a Bill to give effect to one of the Rudd Government’s most important unmet election promises. This bill amends the existing Renewable Energy (Electricity) Act 2000 to increase the Mandatory Renewable Energy Target from 9,500GWh to Labor’s proposed 45,000 GWh. It also includes a new clause requiring that the targets be reviewed each year, and revised by legislative instrument if necessary, to ensure that by 2020 at least 20 per cent of electricity in Australian each year is derived from renewable sources. It is essential to include this clause to make certain that the number of renewable energy GWh remains on track towards the 20 per cent by 2020 target. This is to overcome the problem that occurred previously when the 9,500GWh target did not represent the additional promised 2 per cent increase because of a much larger overall increase in electricity demand than was predicted at the time that the MRET was first set.

In the interests of achieving a swift resolution on this vital matter, the bill from the Greens would enact the Labor commitment on targets, not the higher Greens target. On such an important issue as developing the zero emissions energy sources that will enable us to prevent catastrophic climate change, there can be no reason for the Government not to support the bill.

The potential for renewable energy in Australia is far greater than any projections for energy demand. As Labor’s election documentation itself noted, “enough sunshine falls on Australia and New Zealand on an average day to power the two countries for 25 years”. When our geothermal, wave and tidal, wind and bioenergy potential is added to this, ensuring that, if one source is in short supply for a time, others can fill the gap, there is absolutely no doubt that we can power Australia forever with zero emissions, renewable energy. We can have energy that will never pollute, and we will never have to pay for fuel again, since the sun and wind are free.

Making this vital transition from polluting coal to clean, renewable energy will require a big investment and huge numbers of people employed in high quality jobs. Even if the climate change urgency were not as great, now is the perfect time to embark on this project as part of a ‘Green New Deal’ to lift us out of the global financial crisis. It is one of the most exciting political opportunities in recent history that we can use the solution to the climate meltdown as the solution to the financial meltdown.

The Rudd Government, however, appears to have coal dust in its eyes. While throwing hundreds of millions of dollars at the coal sector’s pipedream of geosequestration, renewable energy is getting the scraps from the table.

And yet, the Government is still attempting to dine out on its election promise. In the celebrations of its anniversary, support for renewable energy was listed as a great achievement.

Here are a few selections from what Rudd Labor said about its 20 per cent MRET promise before the 2007 election—some of the choice phrases from an election policy document called “Labor’s 2020 target for a renewable energy future” which encouraged so many voters to give them their support.

“Climate change is a critical economic challenge for Australia’s future and for the global economy. Taking decisive action on climate change is critical for future jobs and economic growth in Australia.”

“Australia has abundant solar, wind and geothermal energy. We can harness this clean, renewable energy to power our homes and businesses to help tackle climate change. Yet renewable energy has gone backwards under the Howard Government, and many leading edge Australian renewable energy businesses have been forced offshore by the Government’s inaction on climate change and renewable energy.

“A Rudd Labor Government will ensure that the equivalent of at least 20 per cent of Australia’s electricity supply—approximately 60,000 gigawatt hours (GWh)—is generated from renewable sources by 2020 as part of Labor’s comprehensive approach to tackling climate change.

“This is equivalent to the electricity used in Australia’s seven and a half million homes.1

According to industry economic modelling, a 20 per cent renewable energy target will deliver emission reductions of 342 million tonnes of greenhouse gases between 2010 and 2030 compared to just 219 million tonnes under a 15 per cent clean energy target.”

“Scientists—including the CSIRO—are telling us that Australia must achieve emissions reductions of 60 per cent by 2050 if we are to avert the significant economic consequences of dangerous climate change. These reductions can be achieved while maintaining strong economic growth.

“Renewable energy technologies will play a critical role in achieving these cuts as well as providing substantial employment opportunities, particularly in regional Australia. Economic modelling shows that significant cuts to emissions can be achieved at the lowest cost by combining emissions trading with a strong renewable energy target and investment in energy efficiency.3

“Federal Labor has a long standing commitment to introduce emissions trading that will provide the incentive to cut Australia’s emissions through innovative approaches.

“But while the introduction of emissions trading will help bring cleaner technologies into the market over time, an interim renewable energy target will accelerate their use, driving cost reductions by encouraging economies of scale—and achieving overall emission reductions at lower cost.

“As emissions trading matures, however, a renewable energy target will no longer be required. Under a Rudd Labor Government the renewable energy target will phase out in the period 2020 to 2030.

“As part of Labor’s 2020 vision for a clean renewable energy future, Federal Labor will:

• Ensure the equivalent of at least 20 per cent of our electricity supply—or approximately 60,000 GWh—is generated from renewable sources by 2020.
• Increase the Mandatory Renewable Energy Target (MRET) to 45,000 GWh to ensure that together with the approximately 15,000 GWh of existing renewable capacity, Australia reaches Labor’s 20 per cent target by 2020.

“The global market for renewable energy is set to be worth US$750 billion a year by 2016. Countries around the world are setting renewable energy targets to help reduce emissions and position themselves to benefit from this growing market. China has a target of 20 per cent by 2020 and 33 per cent of California’s energy will come from renewable sources by 2020.”

These are fine words, many of which could have been taken from Greens announcements and campaign materials from years ago. The difference, however, is that, when Rudd Labor was given the power to turn words into action, they have, so far, failed to deliver.

This issue is increasingly urgent. Not only because of the climate imperative, but also because the renewable energy innovators and investors who were looking at such a bright future thanks to the election of a Government promising them so much, are now losing momentum and starting to look offshore for growth opportunities. I am hearing that the renewable energy industry is becoming increasingly dismayed about the delay—indeed the complete lack of progress—towards finalising the renewable energy target. This delay and uncertainly is holding back investment.

Only last week, BP Solar joined the long list of companies and innovators that the Labor document referred to as having left Australia thanks to Government policy.

For a Government that is so concerned about carbon leakage thanks to its emissions trading scheme, promising handouts to keep polluters in Australia, you might think that they would also see the clean energy leakage that is becoming apparent.

Millions of dollars of renewable energy investment is waiting to go—if only the Government would get of its hands.

This delay is indicative of the Rudd Government’s attitude to renewable energy generally. First they pull the rug out of the PV industry by means testing the Solar Homes and Communities Rebates and then they relegate serious consideration of national gross feed-in law to COAG oblivion.

Australia can and must see far more than 20 per cent renewable energy by 2020, which is why the Greens advocate both a 25 per cent target and a gross feed-in tariff. That policy structure would enable growth in the industry well beyond 25 per cent, and for technologies which will be relatively unsupported by the MRET such as solar thermal, geothermal and wave power.

However, in the interests of making progress, and of assisting the Government in meeting its election promises, this 20 per cent target is the necessary starting point. I commend the bill to the Senate.

I seek leave to continue my remarks later.

Leave granted; debate adjourned.