Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I thank Senator Stewart for her question. It's a really important question, particularly on the day when we have the latest IPCC report. Right now the parliament has an opportunity to get Australia's biggest emitters to reduce their emissions. The safeguard mechanism reform is key to meeting our legislated emissions reduction target, which is something this chamber supported late last year—a 43 per cent reduction target.

The Liberal-National government wasted a decade with inaction on climate change—we all know that—but this reform will give the market and heavy industry the certainty that they have been seeking and asking for for some time. It will drive change amongst the 215 biggest emitters in the country, who represent 28 per cent of our overall emissions. If it's passed, it will take 205 million tonnes of carbon out of the air by 2030. That's the equivalent of taking two-thirds of the cars off Australian roads.

As former Energy Security Board chair and current chair of the Carbon Market Institute, Kerry Schott, has said about these reforms, they will 'drive decarbonisation in Australia's highest polluting industrial facilities'. She explained that 'it is designed to benefit the companies already doing a lot while allowing others to catch up without a prohibitive upfront expense'. The reform has strong and broad based support across the economy and the community. We are in good-faith negotiations with those senators who are engaged—none of those opposite, of course, who've dealt themselves out of any discussion. I support the comments made by Senator Lambie this morning on ABC Radio National, when she said: 'We could have had a starting point, though, in early 2011 and 2012. We missed that opportunity. This is a great opportunity. Let's pounce on it.'

At the last election the Australian people clearly voted for change. They wanted to end the climate wars, and we've got the chance to do that. (Time expired)

Sue Lines (President) Share this | Link to this | Hansard source

Senator Stewart, first supplementary?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

Thank you, Senator Stewart, for the supplementary question. The Intergovernmental Panel on Climate Change's latest Synthesis report makes clear there is a rapidly closing window for action and economic transition. Simply put, action is needed right now. We are starting well behind where we should, after a decade of denial, delay and dysfunction from those opposite. They had 22 failed energy policies and couldn't land one of them, and now there is the safeguard mechanism, which they seemingly oppose.

We have not wasted a single day since coming to office. The IPCC Synthesis report highlights the need for action. To keep 1½ degrees within reach, we have to act fast. The safeguard reforms could start to take effect on 1 July, just over a hundred days away. It's action that's needed now that will determine the future of our planet. I would urge senators to support the safeguard mechanism bill when it comes to this chamber later this week.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Stewart, second supplementary.

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I thank Senator Stewart for the supplementary question. The Albanese government has worked constructively with businesses to formulate a plan that will end the policy uncertainty and enable a predictable emissions reduction pathway to net zero by 2050. The safeguard mechanism reforms are the next step in supporting Australia's biggest emitters to remain competitive in a decarbonising global economy whilst reducing their emissions.

These reforms, importantly, are supported by the Business Council of Australia, the Australian Industry Group and the Australian Chamber of Commerce and Industry, who have publicly supported this approach through the reforms to the safeguard mechanism. We cannot squander this opportunity that we can take to get moving, to cover the 215 facilities covered by the mechanism. Many of them have already signed up to net zero by 2050. We don't want to end up where we were years ago under this mob, where we had a total lack of action on climate change. (Time expired)