Federal energy and climate minister Chris Bowen has made a last-ditch pitch to the Coalition opposition to support Labor’s Climate Change Bill, which was introduced into Parliament on Wednesday, the first sitting day of the new government.
The history-making Bill seeks to enshrine the Albanese government’s emissions reduction target of 43% by 2030 on 2005 levels – a number Bowen describes as a floor on what Australia can achieve, as opposed to a limit on ambition – and some of the measures it hopes will support the goal.
And while Bowen continues to insist that the safe passage of the Climate Bill is not necessary for his government to act, he stressed on Wednesday that climate action supported by legislation – in turn backed by bipartisan political support – is the gold standard of good policy.
“The government’s been very clear. While this legislation is not essential for the government to embark on the policy actions we sought and received a mandate for, it is best practice.
“The IPCC in its 2022 mitigation of climate change report said that climate laws enable mitigation action by signaling the direction of travel, setting targets policies, enhancing regulatory certainty, creating focal points for social mobilisation and attracting international finance.
“It will help provide the policy certainty and stability that the Australian community has called for so clearly. This, in turn, will help attract investment and skills for the needed for the transition to net-zero – because the world’s climate emergency is Australia’s jobs opportunity.
“There is significant export market waiting for us if we get the levers right to take advantage. That’s what this bill does.”
The Bill is so far receiving the broad support of industry and climate groups and even (sort of) seems likely to win the backing of the Greens, but with the caveat that it is only just a starting point, and one of many policy levers that need to be pulled – and fast – if Australia is to play its part in averting dangerous climate change.
“It is important that the government has said their targets are the floor not the ceiling and can be improved overtime. But the language in the Bill should make clear that there is no obstacle to governments going faster and further,” said Climate Council CEO Amanda McKenzie on Wednesday.
“This new legislation can act as a springboard for Australia to cut emissions and grasp the incredible opportunities that are within our reach as one of the sunniest and windiest places on the planet.
“The 2020s are make or break for keeping warming to survivable limits. Everything is at stake if we get this wrong,” McKenzie said.
“The Climate Change Bill outlines initial and critical steps to get Australia on the starting blocks for a net zero emissions economy,” said the director of policy at the Investor Group on Climate Change, Erwin Jackson.
“These measures will reduce the risk of continuing the chaotic climate policy making which has increased investment risks and costs in Australia,” he said.
“Climate change policy needs to get more predictable, disciplined and transparent to underpin the business investment needed to meet our challenging climate goals, and the federal government’s legislation tabled in Parliament today is a positive start,” said Innes Willox, CEO of the Australian Industry Group.
“Business will study the Climate Bill and its companion amendments in detail and suggest improvements where we can. But in their current form they represent a very big improvement on the status quo,” Willox added
“The broader the support they receive, the stronger the basis for investment will be and that will underpin our ability to meet other economic and social objectives including high employment growth and improving living standards.”
The leader of the Opposition, however, has made it clear that the Coalition will not be supporting the bill – and did so even before seeing it, although there is some talk about of some members of the party crossing the floor.
Bowen, on Wednesday, said it was “disappointing” that the opposition, rather than voting for progress, would choose to “keep the climate wars going” and stand against the framework for unleashing private sector investment.
“This bill represents an opportunity for this parliament and for our country, an opportunity to send the message at home and abroad,” Bowen said.
“Not only does Australia have a government that is getting on with the job of providing a coherent policy to accelerate investment – in renewable energy, in transmission and storage – but we have a parliament that’s getting on with the job as well.
“This legislation is important, not so much because what obliges governments and ministers to do, although there are significant elements in this bill, but more because of the message of stable, clear and coherent and necessary policy.
“It says to the private sector, to private investors when it comes to investing in renewable energy, that Australia is open for business and raring to go.
“It sends a message that Australia is back as a good international citizen …[and] that Australia has a government and a parliament that wants Australia to be a renewable energy powerhouse.
“The passage of this bill will be important for the message it says to future generations that we are determined to lift our game.”
As for the detail of the Bill, as well as setting in stone Australia’s emissions reduction targets out to net-zero by 2050, it commits to an annual climate change statement, to be delivered by his department at the end of each calendar year.
Bowen says the annual statement will be tabled in Parliament and will include an update on Australia’s progress towards meeting its emission reduction targets as well as on climate change policy and relevant international developments.
The Bill also commits to “a restored Climate Change Authority,” that will provide Bowen with independent expert advice on the annual climate statement, which he says will be published in an open and transparent way.
See also Labor plans to seek advice from Climate Change Authority. But what is it worth?
“The Australian community will be able to see what the independent authority thinks about the effectiveness of Australia’s climate change policy and how it’s tracking towards achieving our targets,” Bowen said.
“Finally, the Climate Change Authority will provide advice on any new or updated emission reduction targets to be communicated to the UN under the Paris agreement. And that advice will also be published. That advice will be given to the government at least once every five years.”
More responses to the Climate Bill:
“A legislated target provides investors with the long-term confidence needed to make decisions about future projects,” said Acciona Energy managing director Brett Wickham.
“We welcome Minister Bowen’s view that a 43% reduction in emissions can be a floor rather than a ceiling and encourage others to move beyond the target number and instead focus on the details that will get us there.”
