Linda Reynolds (WA, Liberal Party) Share this | Link to this | Hansard source

My question is also to the Leader of the Government in the Senate and Minister Representing the Prime Minister, Senator Brandis. Will the minister inform the Senate of how this government is reducing carbon emissions without placing a tax on electricity?

George Brandis (Queensland, Liberal Party, Attorney-General) Share this | Link to this | Hansard source

Thank you very much, Senator Reynolds. That is a very important and, if I may say so, very timely question.

The Department of the Environment has released a formal national update on Australia's 2020 emission target that confirms that Australia will not only meet its target but will well and truly exceed its target by, on current projections, at least 28 million tonnes. The government is taking a strong and responsible approach to addressing climate change through policies which actually reduce Australia's emissions without a reckless carbon tax that punishes Australian families and Australian businesses.

The Emissions Reduction Fund is central to those strong and successful policies. At the first Emissions Reduction Fund auction in April 2015 the government contracted 47 million tonnes of emissions reductions at an average price of $13.95 per tonne. At the second ERF auction in November 2015, 45 million tonnes of reductions were contracted at $12.25 per tonne on average—which, as you can see, was even lower than at the first auction. At the second auction contracts were awarded to 131 projects, including 33 bushfire prevention projects which will reduce emissions by nearly seven million tonnes. Indigenous groups will play a significant part in this. Across both auctions the government has contracted 92.8 million tonnes of emissions reductions at an average price of $13.12. This is one per cent of the cost per tonne of abatement under the carbon tax. Unlike Labor's carbon tax, our policy is working.

Linda Reynolds (WA, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the minister also update the Senate on how Australia is leading global action through the Montreal Protocol to reduce emissions?

George Brandis (Queensland, Liberal Party, Attorney-General) Share this | Link to this | Hansard source

Yes, Senator Reynolds, I can. I can tell you that Australia will reduce its emissions by 26 per cent to 28 per cent from 2005 levels by 2030. Per capita emissions will be up to 52 per cent lower—the second-largest drop in the G20. Let me say that again, because it is a point that bears repeating: we are achieving the second-lowest per capita reduction of emissions of any G20 nation.

Our targets are responsible and achievable. Australia secured a key global agreement to expand the Montreal Protocol for a phase-down of hydrofluorocarbons. In Australia we are working towards phasing down the use of HFCs by 85 per cent by 2036. The Montreal Protocol has provided five times the climate benefit— (Time expired)

Linda Reynolds (WA, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Are there any threats to this very effective approach which is actually working to reduce emissions? Are there any threats to those reductions?

George Brandis (Queensland, Liberal Party, Attorney-General) Share this | Link to this | Hansard source

Yes, there are, Senator Reynolds, I am sorry to say. Although the policies of the Turnbull government are demonstrably effective and at a tiny fraction of the cost of the carbon tax, Mr Bill Shorten has announced yet another plan for higher electricity prices. Labor's own modelling, which it released when it was in government, shows that its 45 per cent target would deliver around a $600 billion hit to the Australian economy, Australian income per person would fall by $4,900, with a carbon tax of $209 per tonne. Wholesale electricity prices would be 78 per cent higher in 2030 under Mr Bill Shorten's plan. Let me say that again: wholesale electricity prices would go up by 78 per cent under Mr Bill Shorten's plan.