Karen Grogan (SA, Australian Labor Party) Share this | Hansard source

We will be voting against this motion, but I want to make it clear why we will be doing that. The Minister for Climate Change and Energy has just returned from a very successful COP27 in Egypt, at which Australia was warmly welcomed back into the fold, into the international community, as a climate change leader after nine very long years of neglect. We are delighted to join with our Pacific family in bidding to co-host COP31 in 2026. We want the Pacific to have a voice, and there is no better way than hosting this conference with them, in our region, for the Pacific to put their case before the world.

We look forward to working closely and cooperatively with the Pacific, to secure and deliver a COP that will look to a collective vision in this important environment. Minister Bowen met with the Vanuatu climate minister at COP. That minister has described having an Australian government with a strong agenda as a breath of fresh air. The level of support that we have received, for this bid, from around the world has been really encouraging, including very strong support from the Pacific region.

We also acknowledge that nations have differing positions, which are, rightly, debated at these international summits. The question that we have in front of us refers to the Middle Arm Sustainable Development Precinct. The government is supporting the development of the Middle Arm Sustainable Development Precinct, together with regional logistics hubs along key transport links. This investment will enable the precinct to be globally competitive and sustainable, with a focus on green hydrogen and critical minerals processing.

This investment is not a subsidy for fossil fuel. Rather, the funding will go towards infrastructure that will support users to export clean energy critical to meet our commitment to net zero. That means not only generating green hydrogen but also manufacturing and exporting lithium batteries, which are critical to the global energy transition and decarbonisation. Demand is growing overseas for these clean energy sources, and this investment will help to position the Northern Territory and northern Australia to diversify their economies and take advantage of new opportunities. It will provide significant economic benefits and sustainable jobs.

Middle Arm is already recognised as a potential site for renewable energy, with companies like Sun Cable looking to establish renewable energy battery facilities at Middle Arm. Instead of funding any particular companies, what we're seeking to do here is invest in common-use enabling infrastructure, like the marine works, which will give all potential users in the market an opportunity to grow and thrive—including those who are able to process and export green hydrogen and energy transition components.

There is some way to go until construction commences, and, as our friends would be well aware, the project is undergoing significant environmental assessments both under the Northern Territory Environment Protection Act and under the federal Environment Protection and Biodiversity Conservation Act. These assessments will look clearly at the impact of the proposed construction.

The Australian government will work with the Northern Territory government, with the industry, with the local community and with the relevant First Nations communities to develop a sustainable growth plan for Middle Arm, with a view to further announcements next year on the implementation of this equity investment. The Australian government believes investing in projects such as the Middle Arm Sustainable Development Precinct is an important way of setting up our economy and the Northern Territory for a sustainable future. We are committed to playing a constructive role as a climate change leader, and we also support economic and job opportunities where it makes sense to do so. We believe that this project has potential for both economic development and job opportunities in the Northern Territory. It will also help us into a sustainable future.