Jess Walsh (Victoria, Australian Labor Party) Share this | Hansard source

Minister, there've been a lot of questions and concern today from those opposite about the impact of our reforms on the business community. I understand that there's actually been considerable support for the government's safeguard mechanism policy design from business advocates and that there's considerable support on the record. For example, from the BCA, Jennifer Westacott said about these safeguard reforms:

… my message to all involved is let's pass this bill.

She also said:

… let's get it done, let's get some momentum so that we can get this big investment change happening …

There were similar comments and similar endorsement from Andrew McKellar of ACCI. He said:

The business community has been very clear in its support for reforms to the Safeguard Mechanism. This is the best way to secure the planning, investment and innovation that will underpin the decarbonisation of our economy without sacrificing reliability or affordability.

There was also considerable support on the record from the Australian Industry Group, the AIG. Mr Willox said:

While debate over the detail of the reformed Safeguard Mechanism will continue, the crediting Bill before Parliament is essential policy infrastructure and it is strongly in everyone's interest to pass it.

Mr Willox also said:

It is time for the Parliament to come to a workable agreement on the current package of Safeguard Mechanism reforms so that the private and public sectors can get on with the transition to a net zero emissions economy.

I note further the comments that were actually made just yesterday, I think—I think yesterday was 28 March, it's been a bit of a time-space vortex in here recently, but I think these comments were made yesterday—from Manufacturing Australia on 28 March and those comments take into account all of the debate that's been happening over the last few days. Manufacturing Australia said:

These changes are sensible and pragmatic. It's now vital that we get the details and the implementation right, to enable the multi-decade investments that are needed to underpin low emissions manufacturing.

It's great, of course, to hear that support from our manufacturing sector as recently as yesterday that the changes are sensible and they're pragmatic, and it's vital that we continue now with the implementation phase and get that right so that industry can get on with the long-term investment that they need to transform to low-emissions manufacturing.

Of course, it's not just in the manufacturing sector that we have seen this support from business and from industry. I have also seen comments that I wanted your reaction to, Minister. Glencore CEO Gary Nagle said:

We are committed to reducing our total emissions (Scope 1, 2 and 3) by 15% by 2026 and 50% by 2035, both on 2019 levels. Post 2035, our ambition is to achieve net zero total emissions by 2050, with a supportive policy environment.

We have heard today figures about just how many of the businesses that are covered by the reformed safeguard mechanism already have those net zero total emissions targets by 2050, and Glencore is clearly one of those. Their website explains it really well. The website says:

We aim to be a net zero total emissions company by 2050. This means we're not only reducing the direct emissions from our own operations (Scope 1 and Scope 2 emissions), but also those created from the use of our products (Scope 3).

It's fantastic to see the great ambition there from Glencore, the support that they have for the safeguard mechanism and their desire to see a supportive policy environment that gives them the certainty that they need for their business to go forward.

We have also had on the record support from the Minerals Council of Australia. Ms Constable said to the Senate inquiry back in February, speaking about where the mining industry is at with reducing emissions:

The mining industry recognises that there is a very big task that is required to reduce emissions, and we have been on that path for a long time. The minerals industry has signed onto net zero by 2050.

Again, they are already well on the way and looking for the certainty and stability of the types of reforms that the government is putting forward this week in the Senate. She went on to say that they have made that target. Then she went on to say:

We have not been sitting on our hands waiting for policy change. We have been making that change over time. In 2020, the Minerals Council of Australia and its members released our first climate action plan. Since that time we have reported on an annual rolling basis our activities across the industry. It has been measured and, as I said, it has been recorded. MCA members have around about 39 separate activities that go from fuel switching—changing out of current energy sources to new energy sources—autonomous operations, renewable energy, battery storage, digitisation, a whole range of issues on site and in our headquarters, so across all of our operations. That is ongoing and will continue to be ongoing. It is a hard task, but every member is taking action.

It is tremendous to see that level of support from the business community for these safeguard reforms.

The BCA's Jennifer Westacott has said, 'Let's get on and pass this bill.' ACCI said, 'The business community has been very clear in its support for reforms to the Safeguard Mechanism,' and that it's the way forward for decarbonising our economy. The AiG said that of course there will be implementation questions and of course there will be detailed questions, but that this is 'essential policy infrastructure'. They say that it is time for the parliament to come to a workable agreement, which is what we're here to do, of course, this week in the parliament. Again, of course, as recently as yesterday, in taking on board all of the debates that have been happening in and around the parliament, we see that Manufacturing Australia have said that these changes are 'sensible and pragmatic'. That's what we aim to be as we get on with the job of delivering net zero by 2050 and reducing our emissions over the next several years to 2030 as well.

Minister, what type of support does the proposed safeguard mechanism have from the business community?

The Senate transcript was published up to 20:00 . The remainder of the transcript will be published progressively as it is completed.