Sam Rae (Hawke, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Climate Change and Energy. Why are the Albanese Labor government's safeguard mechanism reforms an economic and environmental priority? What would be the consequences of not reforming the safeguard mechanism?

Chris Bowen (McMahon, Australian Labor Party, Minister for Climate Change and Energy) Share this | Link to this | Hansard source

I thank my honourable friend for his question and recognise his contribution to the House. In the 10 months he's been here, he's made a wonderful contribution. Next week the parliament will have a chance to draw a line under the 10 years of delay and denial of climate policy in Australia. Next week the parliament will have a chance to send a message to people in Australia and to investors around the world that those 10 years of denial and delay are over. Next week the parliament will have a choice between delay and action—action on reducing emissions, action on encouraging investment in renewable energy and decarbonisation.

The honourable member asks about the consequences if we don't take that choice. The consequences will be very clear: 205 million extra tonnes of emissions in the air if we don't act. If we don't take this opportunity, the consequences would be that, instead of achieving a 43 per cent emissions reduction by 2030, it will be 35 per cent. These are the consequences of not acting.

The consequences of continuing with 10 years of dysfunction would be that the world will get a mixed message from our country. This parliament sent the world a message last year that we have one energy policy, one climate change policy, that's enshrined in the law of the land. Now is the time to implement this, and the key is attracting investment to decarbonise.

There has been strong support for our policy from people who want to invest in our decarbonisation. Rebecca Mikula-Wright, the CEO of the Investor Group on Climate Change, said 'Policy uncertainty has been the biggest handbrake for long-term investors who are ready to invest in economy-wide decarbonisation.' Or Kristy Graham, the CEO of the Australian Sustainable Finance Institute, said of the safeguard mechanism's reforms, 'It'll provide an important signal to international investors, lenders and insurers that Australian climate policy is continuing to strengthen and enable Australia to attract capital to support the climate transition.' And that's what it's all about. Investment equals jobs. Capital equals jobs. But capital craves policy certainty. Capital craves policy stability. That's what this government is giving the Australian people and investors from around the world. That's what we invite the parliament to join with us in providing—in providing that stability and certainty of a framework for investment right throughout our regions in Australia's big industries, who can decarbonise and be world-leading in a decarbonising world. That is what is at stake in this parliament next week. The chance to give Australian industry and Australian workers that opportunity. I'm confident. I believe that parliament can and will seize that opportunity and not squander it.