Glenn Sterle (WA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Gallagher. As the world embarks on the biggest economic transformation since the Industrial Revolution, only Labor is protecting the environment whilst pursuing the enormous economic and jobs opportunities that the energy transition offers Australia. Can the minister please outline the government's practical plan to seize these opportunities. Why is it important to send the right investment signals to investors in the energy transition? Those opposite might want to hear this. You might learn something.

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

I thank Senator Sterle for that question because it's a very important question around how Australia approaches the massive economic transition that's going on across the world in relation to the renewable energy transition. The Albanese government has a clear and credible path to net zero and to manage and maximise the benefits of this economic transformation. Our policies need to help Australia attract investment, lift wages, grow living standards, create jobs and spread economic opportunity right around the country.

The modelling that was released by Treasury to accompany Labor's announcement on our 2035 target makes clear five key conclusions:

1. Australia can be a primary beneficiary of the global net zero transformation if we continue to take decisive action on climate change

2. Cheaper, cleaner energy will strengthen Australia's international competitiveness

3. Clear and credible climate action will lead to more jobs, higher wages and better living standards for Australians

4. Our orderly net zero plan gives businesses the clarity and certainty they need to invest in Australia with confidence

5. A disorderly transition would mean fewer jobs, less business investment, lower wages, lower living standards and higher power prices in a smaller economy.

These are the clear findings from Treasury. They, as the experts, have had a very close look, including across the world. The benefits for Australia are clear, which is why, on this side of the chamber, we are united in our approach to grabbing those economic opportunities that come, walking together and making sure that we don't miss those opportunities. The jobs and higher living standards that come with them will benefit all Australians. (Time expired)

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

Senator Sterle, first supplementary?

Glenn Sterle (WA, Australian Labor Party) Share this | Link to this | Hansard source

The government knows that energy prices are a key concern for Australian households, which is why we have delivered energy bill relief. As the world looks towards a green energy future, what benefit does the energy transition offer Australians when it comes to the cost of electricity?

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

I thank Senator Sterle for that question. All of the advice to government makes it very clear that the cheapest form of new energy is firmed renewables—that's right; that upward pressure on electricity is overwhelmingly due to ageing fossil fuel assets; and that, if we don't have an orderly transition to the renewable energy future, it means higher prices for households, higher prices for business, fewer jobs and less business investment. Those opposite, the party of the free market—as Senator Bragg so eloquently put it in one of his 3,000 interviews this week: 'Well, the debate is over. The capital markets have made up their minds here. There is a wall of money going to renewable energy.' Where has the party of free markets gone to? (Time expired)

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

Senator Sterle, second supplementary?

Glenn Sterle (WA, Australian Labor Party) Share this | Link to this | Hansard source

Thank you, Minister. Treasury has told us that abandoning net zero would result in fewer jobs, less growth, lower investment, lower wages and lower living standards. What is the government doing to ensure that Australia avoids a disorderly transition or, even worse, a scenario where net zero is abandoned?

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

I thank Senator Sterle for the excellent delivery of that question. This government is focused on making sure that this generation and, importantly, future generations benefit from the opportunities that come with the global energy transition and the economic transition that are currently underway. We know, from information given to us—and this would have normally been enough to convince the old Liberal Party, or the traditional Liberal Party, to stick with an energy policy or, at least, not abandon net zero—that the economy would be projected to be $2 trillion smaller by 2050, GDP per capita would be $4½ thousand lower by 2050 and wholesale electricity prices, if you are worried about prices, would be about 50 per cent higher by 2050. That is the reality of what you are about to do when you abandon net zero.