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

I'll take the interjection from Senator Rice. Senator Rice is correct that the safeguard mechanism hasn't worked very well, because under the previous government it was a mechanism that didn't in fact create an obligation for the covered entities to reduce their emissions. That is what has changed under this government, and this chamber went through an extended debate to put in place binding emissions constraints on large facilities right across the economy. We will expect those facilities, those covered entities, to reduce their emissions.

We know that, for some kinds of activities, carbon capture and storage may be a commercially viable solution for them to reduce their emissions. If that's the case, that's an activity that should be properly regulated. It's already subject to regulation, of course, when it takes place in Australian waters, and that's been the case for a very long time. Our government wants to make sure that those regulations are fit for purpose and actually meet the robust requirements that Australians would expect to be in place for activities like this; that's why there is a review going on across the range of legislative arrangements that are in place to manage CCS projects when they're in Australian waters.

This is part of that effort. It represents an attempt to meet our obligations under an international treaty but also to establish arrangements that are sufficiently robust to meet the expectations around carbon capture and storage projects when they take place. The decision about whether or not to initiate them will be one for project proponents. And so, for the reasons I've explained, we don't support the amendment on sheet 2151, but I thank senators for their contributions to the debate.