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

My question is to the minister representing the Minister for Climate Change and Energy, Senator Gallagher. Can the minister update the Senate on the progress that the Albanese government has made in taking the country forward on climate action?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

LLAGHER (—) (): I thank Senator Grogan for the question and also for her strong advocacy in the area of climate policy over many years. At the last election, the Australian people voted, undeniably, for action on climate change. The Albanese government has a mandate to deliver this climate action, and I welcome the fact that we have been able to secure additional parliamentary support for the safeguard mechanism reforms.

After a decade of inaction from those opposite—that's right, they created the problem, hid the problem and then were opposed to any solutions—we can finally put Australia on a credible path to achieve net zero by 2050. Just remember that those opposite agree with net zero by 2050; they just can't agree with any credible path to get there. The safeguard mechanism, as agreed by a majority of this chamber later this week—and we are deeply appreciative of the work that has gone in from crossbench members, in working with us, including the Greens party, Senator Pocock, Senator Lambie, Senator Tyrrell and Senator Thorpe, who have worked collegiately, as is required by this chamber, to land in a sensible outcome. It really is for those opposite to explain why they dealt themselves out at the earliest opportunity, without even having a discussion.

This passage of the safeguard mechanism bill will allow policy certainty for the first time, after 22 failed energy policies. They announced 22 and couldn't deliver one of them. Business and investors have been after this policy certainty for some time. The jobs, the new industries and the opportunities that will come from having a credible path to net zero should not be underestimated by this chamber, and I thank those who have engaged willingly with the government on these negotiations.

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

That's great news, Minister, great news. Can the minister now update the Senate on the importance of the reforms to the safeguard mechanism to new facilities?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I thank Senator Grogan for the question. The safeguard mechanism reforms are about strengthening the economy and ensuring industry can compete in a decarbonising world. These are landmark reforms that will reduce 205 million tonnes of greenhouse gas emissions to 2030.

Those emissions reduction will be delivered even with new facilities. Under the reformed safeguard mechanism, new facilities will need to meet international best practice. They will need to ensure emissions decline over time. New gas fields supplying existing liquefied natural gas facilities will be treated as new facilities.

With respect to the Beetaloo basin, the Albanese government is committed to working with the Northern Territory government to implement recommendation 9.8 of the Pepper inquiry. The safeguard framework will help deliver the commitment to scope 1 emissions, and, given the cross-jurisdictional nature of scope 2 and 3 emissions, the government will refer scope 2 and 3 emissions to the Energy and Climate Change Ministerial Council.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Grogan, second supplementary?

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

Can the minister tell us what the reaction has been from business, climate and industry groups to the confirmation of parliamentary support for the safeguard reform mechanism?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I thank Senator Grogan for the supplementary question. Yes, I can. Support from senators to help pass the safeguard mechanism reforms has been widely welcomed, including from the Australian Conservation Foundation, the Australian Industry Group, the Climate Council and the Business Council. The Business Council said these reforms were tough but achievable, and we think that's right. We have a policy which is ambitious but achievable, and the work that has gone into getting that balance right and seeking support from this chamber has been considerable. Mr Innes Willox of the Australian Industry Group said:

… industry will view the announced deal with some relief that pragmatism and reasonable compromise have prevailed. Now business and government have to get on with the large task of implementing this reform and supporting transformative investments in industry.

It's a sensible response to good, sensible policy reform that those opposite have rejected and disengaged from for over a decade now.