House debates

Monday, 20 March 2023

Bills

Safeguard Mechanism (Crediting) Amendment Bill 2022; Second Reading

5:08 pm

Photo of Fiona PhillipsFiona Phillips (Gilmore, Australian Labor Party) Share this | Hansard source

I rise today in support of the Safeguard Mechanism (Crediting) Amendment Bill 2022 because I know this is a crucial step forward in our plan to power Australia and take genuine and effective action to reduce our emissions. As a country, we have been having this conversation for far too long. We have seen a decade of energy policy failures. We have seen a decade of inaction to address our changing climate. We have seen business uncertainty and missed opportunities in the renewable energy space. The list goes on. The Albanese government was elected to change all of this. We were elected to move our country forward finally, to end the climate wars and to finally put a plan in place for energy security, for business certainty and for investment in Australian made, a plan to rewire our nation, create the jobs of the future and drive investment in renewable energy—cleaner, cheaper power for local people and businesses.

We know that industry have been leading the way for years. In a policy vacuum created by government, they have taken charge and made significant changes to how they do business. That's not just because they know it's the right thing to do for our planet; it's because it makes good business sense. That's the key. This is actually critical for thriving and growing businesses, because there are better ways of operating, there are cheaper ways of operating and there is so much opportunity that has been wasted. There are cheaper ways of operating, and there is so much opportunity that has been wasted.

The Albanese government is working to end that waste. We are working to support businesses who have been going it alone for far too long. We want to support and encourage businesses to unlock emissions reductions where they are most efficient. The main purpose of this bill is to reward industrial facilities that are staying below their baselines, while at the same time giving other facilities new and low-cost ways to reduce their net emissions. The introduction of safeguard crediting and trading will lower the cost of reducing emissions so that we can stay on track to reach net zero by 2050 in a cost-effective way. A key point here is that many of the 215 facilities producing more than 100,000 tonnes of greenhouse gases a year that are included in the safeguard mechanism have already made long-term climate commitments that surpass Australia's climate targets. They know the world is changing and those who don't keep up will be left behind, so we are creating a supportive policy framework for them to help industry meet its commitments, to drive investment in emissions reductions and to create the flexibility businesses need to find the lowest-cost abatement measures

Businesses that stay below the baseline, which many are already doing, will be able to generate credits that they can trade. This bill will create the mechanism for that crediting and trading, and will deliver 205 million tonnes in abatement between now and 2030, which is equivalent to taking two-thirds of Australia's cars off the road. It is critical we get this in place quickly to help to drive down our emissions now. We simply must encourage business to innovate and thrive in a changing world economy. It is nearly impossible for large-scale transition to happen without adequate support from government and without an incentivising framework from government to make the right changes in the right places. Industry have been looking for this support for years and has been left to find solutions for themselves.

I have talked many times in this place about some businesses in my electorate of Gilmore, on the New South Wales South Coast, who doing just that: finding ways to turn waste into energy, setting up microgrids to power community facilities, investing in solar and other renewables to generate cleaner, cheaper power. Many people are trying to find a way, and they can and will, of course, because local business owners on the South Coast are adaptable and savvy. They know they have to, they know it is beneficial. But they also know it could be easier, it could be cheaper with more support and encouragement from government, so that's what we are doing. We're helping to keep local business competitive in a changing world, helping them to innovate and helping them to grow.

What does all of this translate to? Jobs—Australian jobs—just another arm in our plan to keep local people in well-paid jobs of the future. We're creating jobs while at the same time bringing down power prices and bringing down the prices of goods and services because producers can find cheaper ways of doing business, so we're helping with the cost of living. It's a positive feedback loop that we are setting in motion to support local people to bring down the cost of living and finally bring Australia into the 21st century. But we aren't focusing on just one policy, one trigger or one incentive to help us to move our economy forward and support local communities to transition to cleaner, cheaper power. We have already put in motion a range of other initiatives to help us do this because we know we need a package, not a single line item, if we are to keep Australia moving forward.

One policy package I'm particularly excited about is support for electric vehicles. The South Coast is home to Australia's largest electric vehicle charging station at the Silos Estate in Berry. Their superchargers can entirely recharge an electric car in 20 minutes, which means that not only are they doing their bit to encourage electric vehicles but they are also cementing their winery and the South Coast as a premier road trip destination for electric vehicles: good for the environment, good for the economy and good for business. The Albanese government has already delivered on our election commitment to make electric vehicles more affordable. Our electric car discount bill passed the parliament last year, reducing both the upfront and ongoing costs of owning an electric vehicle. Our National Electric Vehicle Strategy is also working to improve the affordability, supply and uptake of electric vehicles, helping more local people benefit from cleaner, cheaper transport.

Recently I attended the electric vehicle expo at Batemans Bay. It was a thrilling demonstration of everything electric. There were EV test drives and demos, and lots of questions were answered. I got to check out bikes, scooters, lawnmowers—you name it. Our wonderful Southcoast Health and Sustainability Alliance is at it again, supporting local people to find new and exciting ways to reduce their emissions and transition to renewables—just one of the many exciting initiatives that SHASA takes part in. We definitely can make the South Coast the go to for road trips in EVs, rolling out an EV friendly highway right up and down the coast. The drive is there for local business and communities, and the Albanese government is making sure they have the support of government as well. These are exciting times, creating jobs and revolutionising our economy—not by taking away, but by adding, supporting and growing tourism; supporting agriculture; supporting local people.

We know that we can create over 60,000 clean energy jobs in Australia by 2025, most of which will be in regional areas like the South Coast, with the right investment and support from government with our Powering Australia plan. We are going to need thousands of workers every year to enter the energy sector to build the massive infrastructure projects that we all need to meet our energy grid needs and reduction targets. On the South Coast we are poised and ready for these jobs. We are the perfect location for clean manufacturing, solar farming, battery production and more.

The Albanese government has launched the Australian Energy Employment Report survey to directly engage with employers to gain a more detailed understanding of our current and future workforce issues. We want to support the development of the jobs and training we will need to support our transition, to help local people take their place in the global race. We know Australia has the know-how. With the right investment we can be a world leader. We've already started with our New Energy Apprenticeships program. This program will create 10,000 new energy apprenticeships to help young people gain the skills they need for the jobs of the future. An eligible full-time Australian apprentice can receive a payment of $2,000 at six, 12, 24 and 36 months and completion; and part-time apprentices can get $1,000. This payment is to help meet the cost-of-living pressures and incentivise trainees to stay in training.

From 1 July we'll also have a mentor program so that these apprentices can get the ongoing professional development support they need to learn about the industry, build links and cement their place in the industry. I'm a former TAFE teacher who worked with work placements, so I know just how crucial this is not only in helping to further the education and growth of these apprentices but in helping to ensure they stay in the industry. We're building careers, not just jobs. And we're building them at home, in regional areas like the New South Wales South Coast. What could be more exciting?

But the Albanese government doesn't want to sit on its laurels. We need to be able to identify current and future workplace issues in the energy sector. This is where the national survey of energy sector businesses comes in: listening to industry, working with them directly to prepare for the future so that we can create a secure energy sector, help to manage energy prices and grow and develop local jobs. The Australian Energy Employment Report will guide businesses around the country to improve workforce planning, give them certainty to invest and make sure our policies are correctly placed to build jobs, skills development and training opportunities. I strongly encourage local energy businesses on the South Coast to engage with this survey so that the needs of our region are included.

Another exciting chapter in the Albanese government's plan to support emissions reduction, build local jobs and bring down the cost of living is the formal launch of consultation on Australia's first National Battery Strategy. If we mine it here, we should make it here. That is what we want Australia's approach to be. Global demand for existing and next-generation batteries is forecast to increase up to tenfold in the next decade. As we transition to renewable energy, being able to adequately and efficiently store that energy will become more and more critical to energy security. We want Australia to be a key player in the battery industry, and with such an abundance of natural resources we are uniquely placed to make that happen—not only that, but we also have the innovation and research capabilities to make this a reality.

As I've said already, we are not relying on one facet to create the jobs of our future. Boosting our national battery manufacturing capability will complement our National Electric Vehicle Strategy. It will support our 10,000 new energy apprentices, establish a Powering Australia industry growth centre to translate research into local jobs and investment. It will help to deliver the community batteries we have promised to communities like Maloneys Beach in my electorate, making communities more resilient and more sustainable and helping with the cost of living. Each of our policies is like one piece in a wider jigsaw puzzle that is working to push Australia forward and end a decade of stagnation. That's why I support this bill today.

Just one final comment: I must say how disappointed I am to see the Greens standing in the way of this legislation. I'm a firm believer that we must learn from the mistakes of the past and we must find ways to compromise and find a common way forward. Sadly, the Greens seem to be making the same mistake they made in 2009. That mistake led us down the path of a decade of inaction on climate change, a decade of energy waste, a decade of this country going in exactly the opposite direction to what the Greens say their whole agenda is about, politicking to the detriment of local people in our community. I implore them not to make that mistake again. Don't stand in the way of good policy that will support our transition, that will support and is supported by industry and that will support jobs growth. We can't afford to waste any more time. I commend this bill to the House.

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