Jenny McAllister (NSW, Australian Labor Party, Assistant Minister for Climate Change and Energy) Share this | Hansard source

by leave—I move government amendments (1) to (14) on sheet SK147 together:

(1) Schedule 1, item 1, page 3 (lines 8 and 9), omit "by ensuring that", substitute "by ensuring that each of the following outcomes (the safeguard outcomes) are achieved".

(2) Schedule 1, item 1, page 3 (line 12), omit "and".

(3) Schedule 1, item 1, page 3 (lines 13 and 14), omit paragraph 3(2)(b), substitute:

(b) total net safeguard emissions for all of the financial years between 1 July 2020 and 30 June 2030 do not exceed a total of 1,233 million tonnes of carbon dioxide equivalence;

(c) net safeguard emissions decline to:

(i) no more than 100 million tonnes of carbon dioxide equivalence for the financial year beginning on 1 July 2029; and

(ii) zero for any financial year to begin after 30 June 2049;

(d) the 5-year rolling average safeguard emissions for each financial year that begins after 30 June 2024 are lower than the past 5-year rolling average safeguard emissions for that financial year;

(e) the responsible emitter for each designated large facility has a material incentive to invest in reducing covered emissions from the operation of the facility;

(f) the competitiveness of trade-exposed industries is appropriately supported as Australia and its regions seize the opportunities of the move to a global net zero economy.

(4) Schedule 1, item 4, page 3 (before line 25), before the definition of associated provisions, insert:

5-year rolling average safeguard emissions, for a financial year, means the amount, in tonnes of carbon dioxide equivalence, that is one fifth of the total amount of safeguard emissions for the 5 previous financial years.

(5) Schedule 1, item 4, page 4 (after line 10), after the definition of issue, insert:

net safeguard emissions, for a financial year, means the total amount, in tonnes of carbon dioxide equivalence, of net covered emissions from the operation, during the financial year, of all designated large facilities for the financial year.

past 5-year rolling average safeguard emissions, for a financial year (the current financial year), means the amount, in tonnes of carbon dioxide equivalence, that is one fifth of the total amount of safeguard emissions for the period of 5 financial years that ended:

(a) if the current financial year ends before 1 July 2027—3 years before the start of the current financial year; or

(b) otherwise—2 years before the start of the current financial year.

(6) Schedule 1, item 9, page 4 (before line 23), before the definition of safeguard mechanism credit unit, insert:

safeguard emissions, for a financial year, means the total amount, in tonnes of carbon dioxide equivalence, of covered emissions from the operation, during the financial year, of all designated large facilities for the financial year.

(7) Schedule 1, item 9, page 4 (after line 24), after the definition of safeguard mechanism credit unit, insert:

safeguard outcome has the meaning given by subsection 3(2).

(8) Schedule 1, page 4 (after line 28), after item 10, insert:

10A Section 7

Insert:

Secretary means the Secretary of the Department.

(9) Schedule 1, item 37, page 21 (lines 11 and 12), omit all the words from and including "unless" to the end of subsection 22XS(1A), substitute:

unless the Minister is satisfied that those rules:

(a) are consistent with each of the safeguard outcomes in paragraphs 3(2)(b), (c) and (d); and

(b) take into account the safeguard outcomes in paragraphs 3(2)(e) and (f).

(10) Schedule 1, item 37, page 21 (after line 12), after subsection 22XS(1A), insert:

(1B) If the Minister makes safeguard rules, the Minister must publish on the Department's website the Minister's reasons for being satisfied that the safeguard rules:

(a) are consistent with each of the safeguard outcomes in paragraphs 3(2)(b), (c) and (d); and

(b) take into account the safeguard outcomes in paragraphs 3(2)(e) and (f).

(1C) If safeguard rules are in force and the Minister receives advice under subsection 14(1) of the Climate Change Act 2022 that:

(a) safeguard emissions, or net safeguard emissions, for a financial year are not declining consistently with a safeguard outcome in paragraph 3(2)(b), (c) or (d) of this Act; and

(b) the safeguard rules need to be amended in order to achieve each of those safeguard outcomes;

the Minister must:

(c) undertake public consultation in relation to whether the safeguard rules need to be amended in order to achieve the safeguard outcomes and the content of any such amendment; and

(d) if satisfied that the safeguard rules need to be amended in order to achieve the safeguard outcomes—amend the safeguard rules.

(1D) If safeguard rules are in force and the Secretary is satisfied, having regard to:

(a) an estimate given to the Secretary under section 15A of the Climate Change Act 2022; or

(b) information published under subsection 24(3B) of this Act; or

(c) information given to the Secretary, by an agency or authority of the Commonwealth, a State or a Territory, relating to the likely covered emissions of a designated large facility for a financial year;

that the safeguard rules need to be amended in order to achieve each of the safeguard outcomes in paragraphs 3(2)(b), (c) and (d) of this Act, then:

(d) the Secretary must advise the Minister that the Secretary is so satisfied; and

(e) the Minister must:

(i) undertake public consultation in relation to whether the safeguard rules need to be amended in order to achieve the safeguard outcomes and the content of any such amendment; and

(ii) if satisfied that the safeguard rules need to be amended in order to achieve the safeguard outcomes—amend the safeguard rules.

(1E) Subsections (1C) and (1D) do not limit section 17 of the Legislation Act 2003 (rule-makers should consult before making legislative instruments).

(11) Schedule 1, page 21 (after line 28), after item 38, insert:

38A After subsection 24(3)

Insert:

Publication relating to the safeguard mechanism

(3A) If the total amount of covered emissions of greenhouse gases from the operation of a designated large facility during a financial year is set out in a report under this Act for the financial year, the Regulator must publish on its website by 15 April next following the financial year:

(a) that total amount; and

(b) the amount of those covered emissions that were carbon dioxide, methane and nitrous oxide; and

(c) the baseline emissions number for the facility for the financial year; and

(d) if safeguard mechanism credit units have been issued in relation to the facility and the financial year—the number of those units; and

(e) if a monitoring period for the facility ended during, or at the end of, the financial year—the following:

(i) the net emissions number for the facility for that period;

(ii) the number and type of prescribed carbon units (if any) surrendered for the purpose of reducing the net emissions number for the facility for that period;

(iii) if any of those units were Australian carbon credit units issued in respect of an eligible offsets project for a reporting period (within the meaning of the Carbon Credits (Carbon Farming Initiative) Act 2011) for the project—the methodology determination (within the meaning of that Act) that applied to the project for that period.

(3B) For each financial year between 1 July 2023 and 30 June 2030, the Regulator must publish on its website by 15 April next following the financial year:

(a) the safeguard emissions for the financial year; and

(b) the net safeguard emissions for the financial year; and

(c) the 5-year rolling average safeguard emissions for the financial year; and

(d) the total safeguard emissions for all of the financial years between 1 July 2020 and the end of the financial year.

(4) Subsections (3A) and (3B) do not limit the requirements that may be prescribed by the safeguard rules in relation to the publication of information.

38B Subsection 25(5)

Omit "subsection 24(1AF)", substitute "subsection 24(1AF), (3A) or (3B)".

(12) Schedule 1, page 29 (after line 13), after Part 2, insert:

Part 2A — Amendment of the Climate Change Act 2022

Climate Change Act 2022

66A Section 5

Insert:

Climate Change Secretary means the Secretary of the Department responsible for the administration of the National Greenhouse and Energy Reporting Act 2007.

designated large facility has the same meaning as in the National Greenhouse and Energy Reporting Act 2007.

Environment Ministe r means the Minister who administers the Environment Protection and Biodiversity Conservation Act 1999.

expanded designated large facility: a facility is an expandeddesignated large facility for a financial year if:

(a) the activity, or series of activities, that constitutes the facility is carried on to a greater extent in the financial year than in earlier financial years; or

(b) during the financial year, an activity, or series of activities, is included in the activity, or series of activities, that constitutes the facility for the first time.

facility has the same meaning as in the National Greenhouse and Energy Reporting Act 2007.

net safeguard emissions, for a financial year, has the same meaning as in the National Greenhouse and Energy Reporting Act 2007.

new designated large facility, for a financial year, means a designated large facility for the financial year that was not a designated large facility for any previous financial year.

safeguard emissions, for a financial year, has the same meaning as in the National Greenhouse and Energy Reporting Act 2007.

safeguard outcome has the same meaning as in the National Greenhouse and Energy Reporting Act 2007.

safeguard rules has the same meaning as in the National Greenhouse and Energy Reporting Act 2007.

scope 1 emission of greenhouse gas has the same meaning as in the National Greenhouse and Energy Reporting Act 2007.

66B Paragraph 12(1)(d)

After "those policies", insert "and in particular whether safeguard emissions and net safeguard emissions are declining consistently with the safeguard outcomes".

66C Part 4 (heading)

After "Authority", insert "etc.".

66D At the end of section 13

Add:

66E After subsection 14(1)

Insert:

(1A) Advice given to the Minister under subsection (1) must include advice about:

(a) whether safeguard emissions and net safeguard emissions for the financial year to which the annual climate change statement relates are declining consistently with each of the safeguard outcomes in paragraphs 3(2)(b), (c) and (d) of the National Greenhouse and Energy Reporting Act 2007, taking into account:

(i) the impact of any expanded designated large facilities, or new designated large facilities, for the financial year; and

(ii) the impact of any expected expanded designated large facilities, or expected new designated large facilities, for future financial years; and

(iii) any emissions estimates that are given to the Climate Change Authority under section 15A of this Act; and

(b) if safeguard emissions, or net safeguard emissions, for the financial year are not so declining—whether any amendments to the safeguard rules are needed in order to achieve each of those safeguard outcomes.

66F At the end of Part 4

Add:

15A Environment Minister to give Minister, Climate Change Secretary an d Climate Change Authority certain emissions estimates

If, in a financial year:

(a) the Environment Minister approves, under the Environment Protection and Biodiversity Conservation Act 1999, the taking of an action for the purposes of a controlling provision (within the meaning of that Act); and

(b) the Environment Minister is satisfied that the action is likely to result in:

(i) an increase, in the financial year or future financial years, of scope 1 emissions of greenhouse gases from the operation of a designated large facility for the financial year; or

(ii) a new designated large facility for the financial year or a future financial year; and

(c) the Environment Minister has been given an estimate of the scope 1 emissions of greenhouse gases from the taking of the action in one or more financial years for which an entity covered by subparagraph (b)(i) or (ii) is, or is likely to be, a designated large facility;

the Environment Minister must give the estimate to the Minister, the Climate Change Secretary and the Climate Change Authority as soon as practicable after approving the taking of the action.

(13) Schedule 1, item 67, page 30 (after line 16), after subitem (3), insert:

(3A) Subsection 24(3A) of the National Greenhouse and Energy Reporting Act 2007, as inserted by Part 1 of this Schedule, applies in relation to the financial year beginning on 1 July 2023 and later financial years.

(14) Schedule 1, item 67, page 31 (after line 22), at the end of the item, add:

(14) The amendments of the Climate Change Act 2022 made by Part 2A of this Schedule apply in relation to the financial year beginning on 1 July 2023 and later financial years.

Today the government is moving amendments to amend the objects of the National Greenhouse and Energy Reporting Act to specify that net carbon emissions from safeguard facilities decline consistent with Australia's greenhouse gas emissions reduction targets and that covered emissions decline over time; that each facility has a material incentive to reduce emissions; and that the competitiveness of trade exposed industries is appropriately supported as Australia and its regions seize the opportunities to move to a global net zero economy.

These amendments also require public advice from the Climate Change Authority on how emissions are tracking against the carbon budget. Importantly, they add a requirement to make changes to subordinate legislation if the budget is not on track or to take other steps to address that problem. To inform this advice, the environment minister would be required to provide information about emissions from proposed actions that are likely to result in a new facility being covered by the safeguard mechanism or a safeguard facility increasing its emissions after approving the action under the Environment Protection and Biodiversity Conservation Act. This advice would be provided to the Climate Change Authority and to the minister responsible for the Climate Change Act. In the coming weeks, the minister will be releasing associated rules which are required to enable these changes.