Peter Whish-Wilson (Tasmania, Australian Greens) Share this | Hansard source

Thank you, Minister. Perhaps I'll step through this with you then, because I think a lot of that information is publicly available and has been reported on by the media. I'll get back to the Sunrise project and Woodside's comments, which have been made over a number of years, because as I'm sure you're aware the Sunrise project is a very complicated one. The energy economics of it aren't that straightforward.

Let's just deal with the Barossa project for a moment. Once the safeguard legislation was passed by this chamber, there was what was described by the media as a 'broadside' by a number of Japanese investors into the changes to the safeguard mechanism and how they might impact investment in their Barossa project. I think they described it in the strongest possible terms as 'a betrayal' of the relationship between Australia and Japan, which obviously put significant pressure on your government, including various ministers. For example, Michael Smith, the North Asia correspondent for the Fin Review, wrote that Australia is no longer Japan's most trusted LNG supplier. He quoted Japan's Institute of Energy Economics chief executive as well as comments from various companies. Part of that article was clearly referring to a request to the federal government from Japan—and I presume that's the Japanese government—that the Australian government exempt Santos's $5.8 billion Barossa gas project in the Timor Sea from the safeguard mechanism. He then asked that the Albanese government help Japanese operators pay for carbon credits or develop carbon storage that they would need to meet the new emissions targets. I reiterate that this was on 5 July. In that same article, a spokeswoman for energy and climate change minister Chris responded:

… the government was investing in the regulation and administration of carbon capture, utilisation and storage (CCUS), which would help operators earn carbon credits under the safeguard mechanism.

…   …   …

"While the safeguard mechanism provides an incentive for new CCUS projects to meet abatement goals, it also opens the possibility for the earning of Safeguard Mechanism Credits if CCUS projects are successful in lowering emissions below baselines," …

This article also references concerns raised directly with the Albanese government in March—that's three months prior to that—by INPEX Corporation about changes around Australia's energy and carbon policy. So that was on 5 July.

Not long after that, it was reported in a number of news articles that the Minister for Climate Change and Energy, Mr Chris Bowen had—following this broadside, this accusation of betrayal by the Australian government—headed to Japan in an attempt to repair bilateral relations after officials in Tokyo voiced concerns around Australia's future as a reliable LNG gas exporter. The article I am referring to here—and I can provide the minister with a copy of it—was by Amanda Battersby out of Singapore. She got a quote from APPEA that said:

"Proximity lowers emissions from transportation, while the upcoming large-scale implementation of [carbon capture, utilisation and storage] will lower well-to-ship emissions," …

and they talked up the need for more investment in CCUS.

A day after these articles, on 25 July, Michael Smith, North Asia correspondent, clearly got access to Minister Bowen directly, following his coverage of this broadside by the Japanese government and Japanese investors. This article said Climate Change and Energy Minister Chris Bowen had told Japan and South Korea there would be no exemptions from Labor's emissions policy, and that he doesn't believe it threatens their energy security or trading relationships. But:

Mr Bowen also said Labor supported special legislation that would allow Santos to send carbon dioxide from its $5.8 billion Barossa project across an international border to the Timor Sea. He acknowledged the project, which Japan wants to be exempted from the new rules, was reliant on carbon capture utilisation and storage.

Minister: is this legislation and the timing of this legislation designed to facilitate the Barossa gas project as was stated by Mr Chris Bowen?