Larissa Waters Queensland, Australian Greens
4:05 pm
I ask that general business notice of motion No. 69 standing in my name for today, relating to all Australian based insurance companies no longer insuring new thermal coal projects, be taken as a formal motion.
Scott Ryan President
Senator Waters, I take this opportunity to remind senators to not editorialise in asking that motions be taken as formal. There has been a bit of that creeping in.
Larissa Waters Queensland, Australian Greens
Thank you, Mr President. I just wanted to make sure that everyone knew what the motion was about.
Scott Ryan President
Is there any objection to that motion being taken as formal? There being none, I call Senator Waters.
Larissa Waters Queensland, Australian Greens
I move:
That the Senate—
(a) notes that:
(i) the ability to secure finance and insurance is a crucial step in the development of large-scale resources projects, providing protection for developers, government and the community,
(ii) Suncorp last week announced that it would no longer invest in, finance or insure new thermal coal mines and power plants, and will not underwrite any existing thermal coal projects after 2025,
(iii) QBE Insurance announced in March that, from 1 July 2019, it would no longer directly invest in or insure new thermal coal projects and would stop underwriting existing operations from 2030,
(iv) all Australian-based insurance companies have now effectively committed to removing coal from their investment portfolios, and
(v) many major multi-national re-insurance providers, including Allianz, AXA, Swiss Re, Munich Re and Zurich, have also restricted investment in, and underwriting of, thermal coal projects; and
(b) calls on the Federal Government to:
(i) pay attention to the financial signals and recognise that thermal coal projects are increasingly unviable, and
(ii) commit to action to progress a rapid and just transition to clean and renewable energy sources for a low-carbon economy.
Jonathon Duniam Tasmania, Liberal Party, Assistant Minister for Forestry and Fisheries
I seek leave to make a short statement.
Jonathon Duniam Tasmania, Liberal Party, Assistant Minister for Forestry and Fisheries
The coal industry is far from unviable. Coal continues to be the mainstay of many regional economies and a major driver of exports and the Australian economy. Companies are continuing to invest in new coal projects, and coal was the largest total export earner in 2018, valued at $67 billion. The International Energy Agency's World energy outlook 2018 predicts that global coal demand will grow out to 2040 by 1.6 per cent and that Australia will have a growing share of that trade. The coal industry employed 53,300 Australians in 2017-18 and pays more than $5 billion annually in royalties.
Katy Gallagher ACT, Australian Labor Party, Shadow Minister for Finance
4:06 pm
I seek leave to make a short statement.
Katy Gallagher ACT, Australian Labor Party, Shadow Minister for Finance
Labor won't be supporting this motion. It's premised on inaccurate economic assumptions. On that basis, we reject it. Labor appreciates that markets will continue to drive increased investment in renewable technologies.
Malcolm Roberts Queensland, Pauline Hanson's One Nation Party
I seek leave to make a short statement.
Malcolm Roberts Queensland, Pauline Hanson's One Nation Party
Companies are withdrawing because of aggressive campaigns to smear and vilify investors. They are based on lies—lies about the future prospects of the coal industry and about the future prospects of the intermittent industry, otherwise known as renewables. We also notice that subsidies are distorting the market and destroying the market for coal. We also know that operating rules supporting intermittents unfairly weigh the game to the intermittent energy industry. This is just the Greens' standard modus operandi for destroying a very healthy and essential industry.
Scott Ryan President
The question is that the motion moved by Senator Waters be agreed to.