Christine Milne (Tasmania, Australian Greens) Share this | Link to this | Hansard source

My question is to the minister representing the minister for climate change, Senator Lundy. Minister, the Climate Commission has said in its latest report:

From today until 2050 we can emit no more than 600 billion tonnes of carbon dioxide to have a good chance of staying within the 2°C limit.

Based on estimates by the International Energy Agency, emissions from using all the world’s fossil fuel reserves would be around five times this budget. Burning all fossil fuel reserves would lead to unprecedented changes in climate so severe that they will challenge the existence of our society as we know it today.

Honourable Senators:

Honourable senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Just a moment, Senator Milne. You are entitled to be heard in silence.

Christine Milne (Tasmania, Australian Greens) Share this | Link to this | Hansard source

And finally:

It's clear that most fossil fuels must be left in the ground and cannot be burned.

Does the government agree with the Climate Commission?

Kate Lundy (ACT, Australian Labor Party, Minister Assisting for Industry and Innovation) Share this | Link to this | Hansard source

We as a government are extremely concerned about the impacts of climate change, which is why we have put in place a carbon price. It has been operating since 1 July 2012 and we are already seeing an impact in cleaning up Australia's economy. There are a number of factors and contributions to how we will achieve this. Indeed, one of those is that electricity emissions are down. Electricity accounts for the majority of emissions covered by the carbon price, and emissions from the National Electricity Market fell by 7.4 per cent in the first 11 months of carbon pricing. That is a reduction of almost 12 million tonnes of pollution.

Christine Milne (Tasmania, Australian Greens) Share this | Link to this | Hansard source

Mr President, I rise on a point of order on relevance. The minister was asked whether fossil fuels should be left in the ground and not burned and whether the government agrees with the commission. I would ask her to answer that.

John Hogg (President) Share this | Link to this | Hansard source

The question was far wider than that. The minister is answering the question.

Kate Lundy (ACT, Australian Labor Party, Minister Assisting for Industry and Innovation) Share this | Link to this | Hansard source

As I was saying, coal fired generation is also down and the amount of electricity generated by burning coal is down over seven per cent in the National Electricity Market.

The updated The critical decade report by the Climate Commission shows that there is now even stronger evidence than ever before of a rapidly changing climate. It finds that greenhouse gas emissions are now at their highest level in over one million years and are increasing at a faster rate than ever recorded. This report is a stark reminder that this is a critical decade for Australia and the world, and we take its advice extremely seriously. That is why we are taking the action we are to transition to cleaner energy sources and why we have set up an independent Climate Change Authority to make recommendations about the right pollution cap and carbon budget for our country.

The report urges government to make the switch from emissions intensive fossil fuel sources to renewable energy, and that is exactly what our clean energy future package is doing, combined with Labor's renewable energy target. I have already outlined some of the positive results we are seeing. (Time expired)

Christine Milne (Tasmania, Australian Greens) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. I note the minister has avoided the question, so I will ask her: does the government agree that the huge coalmines proposed for the Bowen and Galilee basins should not now proceed and that the coal ports proposed for construction should be stopped given that, if that coal were burnt, they would be equivalent to the seventh-biggest emitter in the world? Will you stop those ports and those mines in the Galilee and Bowen basins?

Kate Lundy (ACT, Australian Labor Party, Minister Assisting for Industry and Innovation) Share this | Link to this | Hansard source

As I said, we are seeing positive results. Coal is making up a declining proportion of our nation's electricity market. It is down seven per cent since the carbon price began. At the same time, electricity generated from renewable sources has increased almost 30 per cent. Treasury modelling shows that under a carbon price the transformation of the electricity sector will continue, with renewable energy making up an increasing proportion of the energy mix. In combination with our carbon price, the Renewable Energy Target, the Clean Energy Finance Corporation and the Australian Renewable Energy Agency will continue to drive the transition of our emissions intensive energy network to a more suitable path.

Nations around the world accept the science of climate change and are taking domestic measures to move to clean energy sources. The growth of Australia's significant export coal industry will be determined by the energy needs and policies of its customers, the efficiency of their operators and competition with clean energy technologies— (Time expired)

Christine Milne (Tasmania, Australian Greens) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Minister, do you concede that the policy you have to expand coalmines and to have that coal burnt is completely contrary to the Climate Commission's report and indicates that you do not accept the climate science?

Government senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Order, on my left! When there is silence on my left we will proceed.

Kate Lundy (ACT, Australian Labor Party, Minister Assisting for Industry and Innovation) Share this | Link to this | Hansard source

No, we certainly do not concede that, Senator Milne. In the longer term these issues will be influenced by the extent to which the industry can commercialise carbon capture and storage technologies. Countries are responsible for their domestic emissions and how they meet their national targets which contribute to the global carbon budget. Australia is therefore responsible for emissions from coal combusted in Australia and for fugitive emissions arising from both domestically consumed and exported coal. For example, the cost of fugitive emissions from an open cut coalmine in Queensland is currently around 39c per tonne, and there is almost $100 billion worth of coalmining investment at various stages of the investment pipeline. When it comes to exports, the majority of Australia's coal exports go to Japan, South Korea, China and the European Union. All of these countries have introduced or plan to introduce a price on carbon through emissions trading schemes or carbon taxes that will apply to coal consumption in these countries.