Tony Windsor (New England, Independent) Share this | Link to this | Hansard source

My question is to the Minister for Climate Change and Energy Efficiency. Is the minister aware of the progress being made by Inverell based meat processing company Bindaree Beef in relation to emissions reductions from waste treatment? Does the minister believe that such initiatives could in fact reduce the cost of production in the meat sector?

Greg Combet (Charlton, Australian Labor Party, Minister for Climate Change and Energy Efficiency) Share this | Link to this | Hansard source

I thank the member for New England for his question. As I indicated in an answer to a question last week, the meat processing sector is undergoing significant changes as a consequence of the implementation of the carbon price. Those are positive changes that will reduce emissions, reduce costs and improve productivity and competitiveness. That is the fact of the matter. The industry is starting to invest in new equipment to reduce energy use, to cut its emissions and to drive unprecedented improvements in many of these facilities. This is being done in a number of cases with assistance from government grants funded by the carbon price. The member for New England has been a strong advocate for these changes in the industry and very supportive of it in the last couple of years in particular. In his own electorate, Teys, in Tamworth, has received a $330,000 grant funded by the carbon price to install a biogas system which derives renewable energy from the waste materials at the facility. That alone is going to cut the company's energy costs by almost $330,000 a year.

The member indicated that in his electorate Bindaree Beef are looking to invest in what is called a biodigester, which will reduce its energy use and cut its emissions very significantly. A biodigester takes the waste products from the meat processing process—if I can be indelicate about it, that is essentially the blood and guts from the abattoir—takes it through a chemical process and converts it into useful materials, including methane, that can be used to generate electricity. It also produces fertiliser and produces, for those courageous enough to drink it, drinkable water. These are extremely important improvements that can very significantly enhance the productivity and competitiveness of a facility. Even the carbon dioxide by-product from the biodigester can be used, for example, in hothouses for the production of crops.

These are very important changes in the industry. They are all coming about as a consequence of carbon pricing coming into our economy and having very positive impacts. By the end of this year, the fact of the matter is that there will be approximately one billion people living in jurisdictions where a carbon price is in operation, and it is fundamentally important for the future of our economy that we are making that reform, that we are ahead of the game in making these changes in our meat processing sector and ensuring that we are benefitting from the development of clean energy in our economy. Finally, I note that President Obama in the State of the Union address today indicated very clearly and very unequivocally that he expects the congress to develop a market-based mechanism to address climate change and introduce a carbon price into the US economy. He has indicated furthermore that he will take executive steps to implement— (Time expired)