Dana Wortley (SA, Australian Labor Party) Share this | Hansard source

I rise to speak on the Renewable Energy Amendment (Feed-in-Tariff for Electricity) Bill 2008. The Rudd Labor government is committed to protecting our environment. Expanding our reliance on and production of renewable energies is one element of that stance. Among our key undertakings in the realm of cutting our nation’s greenhouse gas emissions is to dramatically increase our renewable energy target to 20 per cent by 2020. Such renewable energy sources as solar, wind, wave and geothermal will play significant roles in this new direction.

In 2008-09, there will be more installations of solar power systems and more Commonwealth funding for solar power than in any year in Australia’s history, in line with ongoing record demand. In the budget, the government brought forward an additional $25.6 million in funding, doubling the number of rebates available under the Solar Homes and Communities Plan this year from 3,000 to 6,000. Funding has been increased in light of record demand for the rebate. We also want to deliver a clean energy revolution through such measures as our $500 million Renewable Energy Fund, $500 million National Clean Coal Initiative and $150 million Energy Innovation Fund.

We need to make sure we have a wide range of appropriate technologies, including clean fossil fuels, biofuels and hydrogen and energy efficiency. This government is working with the states and territories through the Council of Australian Governments to consider the options for a harmonious, national approach to renewable energy feed-in tariffs. Feed-in tariffs are already operating in Australia—Victoria, Queensland, Western Australia, South Australia and the Austrian Capital Territory all have some form of feed-in tariff in place. Other states and territories are planning to implement feed-in tariffs, which provide owners of small renewable energy systems with guaranteed fixed rates for the sale of electricity fed into the grid.

The Senate Standing Committee on Environment, Communications and the Arts conducted an inquiry this year into the feed-in tariff bill that predated the bill before us today. The committee recognised that any feed-in tariff scheme required detailed consideration of coordinated action in light of pre-existing state and territory schemes; the eligibility of different renewable energy sources; tariff values available for different sizes of generators; the parameters within which feed-in tariff payments will decrease over time; whether and how feed-in tariff payments will be indexed; and information management for the administration of the scheme. The report described a feed-in tariff as a policy mechanism used to encourage the use of both small, dispersed generating capacity and large utility-scale generators. It said that a feed-in tariff is a rate usually set by a regulator or government which electricity retailers or a regulator are required to pay to particular electricity generators who want to feed power into the electricity grid. Further, the report said that a feed-in tariff will put a legal obligation on utility companies to buy electricity from renewable energy producers at a premium rate, usually over a guaranteed period, making the installation of renewable energy systems a worthwhile and secure investment for the producer, with the extra cost being shared amongst all energy users, thereby reducing it to a barely noticeable level. The report went on to say that there are at least two main reasons why a feed-in tariff may be set. It may be intended, firstly, to correct a market failure such as the lack of a price signal reflecting the environmental harm caused by greenhouse gas emissions; and, secondly, it may be used to stimulate the development of particular electricity generating technologies, such as photovoltaic cells.

Looking at a feed-in tariff policy option is just one of the Rudd government’s moves in tackling climate change and these moves are all part of our dedicated and deliberative approach to the issue. If we do not tame this beast we will leave a terrible legacy for the generations to come. But we must do this in a careful and considered way. In contrast to the scepticism which pervades the benches opposite, the government knows we must act on preserving and restoring the environment—deliberately, decisively and in a timely, responsible and well measured manner. In contrast to the apathy, indifference and inaction from the former Howard government, we on this side want to make a difference for the future—for future generations, for our nation and for our planet. We must get our response to this crisis right.

We take seriously the overwhelming weight of scientific evidence that says our planet is in peril, and we know the Australian people share our view that this is a serious issue that must be addressed. Therefore, from day one of this administration, Labor’s priorities have been clear on this crucial policy area. Ratifying the Kyoto protocol was the first official act of this government. Through that early step, Australia made a pledge that its greenhouse emissions from this year until 2012 would be no more than eight per cent above 1990 levels. This was an important first move towards bringing our emissions under control. It also gives Australia a seat at the world table when it comes to building international cooperation and collaboration and when it comes to developing a truly global approach to a truly global problem. Australia was also instrumental in facilitating agreement on the roadmap for post-2012 international action on climate change at the December 2007 Bali negotiations. Even though Australia is now a leading player in negotiations under the United Nations Framework Convention on Climate Change, we will not rest there because we know that there is much more to be done.

The Australian government’s climate change policy is built on three sound, strong arms: reducing our nation’s greenhouse gas emissions; adapting to the climate change consequences we cannot avoid; and helping to shape a global solution. The Australian government is committed to reducing greenhouse emissions, and robust, accurate and reliable data is essential to achieving this goal in the most efficient and effective way possible. The government believes that the Carbon Pollution Reduction Scheme, the renewable energy target and other policies and programs we are implementing are the right policy mix to drive Australia’s transition to a low-carbon economy. This government remains strongly committed to helping Australians take practical action to tackle climate change, build a strong solar industry and harness our abundant solar resources. The Rudd Labor government is delivering $2.3 billion over four years in this year’s budget to help individuals, communities and businesses meet the challenges of climate change, and we are committed to assisting Australian households to take practical action during the transition to the Carbon Pollution Reduction Scheme.

Through direct financial incentives, strengthened energy efficiency regulations and targeted information, households will be helped to use less energy while saving money. Key measures include: $10,000 low interest loans for Australian households to implement energy and water savings; rebates for energy-efficient insulation for 300,000 rental homes; $8,000 rebates for rooftop solar power panels and $1,000 rebates for solar hot water systems; improved energy and water efficiency standards for new homes and appliances; and making every school in Australia a ‘solar school’ within eight years.

The $480 million National Solar Schools Program will assist schools to take practical action to tackle climate change by providing grants of up to $50,000 for schools to install a wide variety of energy- and water-saving measures. We will invest $480.6 million over eight years to ensure all our schools can become solar schools. It will reduce school energy and water bills and it will also raise amongst our young people awareness of clean energy technologies available in our communities.

The government also is investing in cleaner transport through measures such as the green car challenge and the newly expanded Green Car Innovation Fund. The government has established the Department of Climate Change and Water within the Prime Minister’s portfolio to deliver Australia’s climate change policy. Building a clean energy future is critical to the goal of significant emissions reductions in Australia and globally, and will also drive business opportunities for forward-thinking elements of industry.

The Rudd government’s first budget provides $1.7 billion to support Australia’s world-leading scientists and researchers in their work to improve energy efficiency and clean energy options. We are also working to adapt to the impacts of climate change that we simply cannot avoid. Our plans include helping coastal communities adapt through the Caring for our Coasts Plan; fast-tracking a climate change adaptation plan for Australia’s World Heritage and iconic areas; securing our future water supplies; and implementing policies to address the effect of drought and climate change on primary industries, such as a $55 million climate change adjustment program and a climate change and productivity research program for primary industry.

We are committed to reducing Australia’s greenhouse gas emissions by 60 per cent on 2000 levels by 2050. We will implement a comprehensive emissions trading scheme by 2010 to deliver these targets. This will ensure that greenhouse gases will have a price and so harness the power of the market in finding cost-effective solutions. The government will work with farmers to encourage sustainable farming practices that reduce emissions and develop carbon sinks. We must act to reduce our greenhouse pollution to avoid the worst impacts of climate change and to protect our long-term prosperity, our environment and our unique way of life.

We must also act to adapt to the impacts of climate change we are experiencing from the greenhouse pollution already in the atmosphere. Tackling the problem will not be easy and there will be costs. But the longer we wait to act, the higher the costs will be. For too long we have poured greenhouse pollution into the atmosphere and we are continuing to do so at an alarming rate. Science tells us that this pollution is causing damage. We are already feeling the effects of this. Projections show that if we do not act it will only get worse, with changing temperatures and rainfall patterns, more droughts, floods, water shortages, rising sea levels and extreme weather.

Australia, already the driest inhabited continent on Earth, is particularly vulnerable to climate change. Many parts of Australia are already struggling through crippling drought and, with climate change, such events will become longer and more severe. Drought is likely to become more frequent as a result of climate change and has the potential to disrupt electricity generation capacity and affect the reliability of electricity suppliers. Increases in temperatures, particularly in the summer months, will increase energy demand.

My home state of South Australia is home to more than 1.5 million people or around 7.6 per cent of Australia’s population. Already the nation’s driest state, climate change presents South Australia with a particularly tough challenge. The state icons of wine growing and agriculture are in the climate change crosshairs. I support the government’s position on working with the states and territories through the Council of Australian Governments to consider the options for a harmonious national approach to a renewable energy feed-in tariff.