Climate change is unquestionably one of the great threats facing the world in the 21st Century. It is a global problem requiring global action from the international community. The consequences of failing to address climate change would be dire for humankind, peaceful international co-operation, our economic and social structures and for the planet’s biodiversity.
Australia has an important role to play as part of global efforts to reduce emissions. Action alone by Australia, or any other nation with a similar medium-sized economy, cannot singularly solve the problem of climate change. Nonetheless, Australia can play a leading role as a respected voice in the international community in pressing for science based and technology driven solutions by the global community. While we need the world’s largest emitters to act responsibly – particularly nations such as the United States, China and India – global success is also dependent on every other nation reducing their own emissions as part of the common effort.
In Australia there has been growing support within the community for effective climate change policies. This has been mirrored by the policies being developed and implemented by governments at every level, the private sector, communities and by individuals. This reflects the fact that success requires a true partnership across the economy and society.
At the federal level this has seen the Government, through the Paris Agreement, commit to both the medium-term 2030 target of reducing emissions by 26 to 28 per cent from the baseline year of 2005 and the longer term goal of reaching net zero emissions, preferably by 2050.
These commitments are being implemented through a range of mechanisms including the $18 billion low emissions technology roadmap and through the work of agencies like the Clean Energy Finance Corporation (CEFC), the Australian Renewable Energy Agency (ARENA) and the CSIRO.
They are being supported by the actions of state governments which control important policy levers in areas like energy, planning and transport.
The transformation of many areas of our economy is well underway. For example, the electricity sector, which is the largest source of domestic emissions, is undergoing profound and positive change through the deployment of renewables across the country – from household solar to the large private and government investments in grid scale wind and solar. These are being supported by low emissions dispatchable power projects such as the expansion of Snowy Hydro, the Tasmanian Battery of the Nation project and the deployment of large-scale batteries.
Australia is also leading the development of new technologies – ranging from hydrogen to the work of CSIRO to reduce livestock emissions.
While there is strong support within the community for action to reduce our emissions, it is also true that Australian politics and the community has, over the last 15 years, been divided at various points on the extent of action required and the best policy approach to achieve emissions reductions.
This has driven the view by some that climate change policy needs to be removed from or lifted above the political field. While the goals of those seeking this outcome are well intentioned, the consequence of this approach would erode the rigour of our democracy and the values it encompasses. As a community, we should never be afraid of the consequences of vigorous policy debate or hope some issues are removed from political debate, particularly on an issue of such importance. Fundamentally, it is the democratic marketplace of ideas and views, tested every three years at elections nationally, that is the foundation of a free and open democracy.
We support the recommendation of the Committee to not support these Bills because they overstep the mark in trying to limit the normal capacity of the elected government of the day to develop and determine policy on how Australia can best reduce its emissions.
It is also important to understand what these Bills entail. The Bills seek to legislate a target of net zero emissions by 2050. They also set up a new bureaucratic architecture for emissions reductions through the creation of a Climate Change Commission which is entrusted with responsibility for developing emissions reduction plans, emissions budgets, adaptation plans and risk assessments. While the relevant minister retains decision making powers, the Commission supplants the normal policy development process of government and the departments of state. The fundamental limitation of this approach is that it builds in the potential for conflict between governments elected with mandates and accountability to voters for particular approaches to climate change and an unelected Commission which operates separately from these considerations.
There is an important role within the policy development framework of government for independent advice, particularly on scientific, environmental, technological, and economic considerations, policy options and analysis. Under the existing architecture, this includes the advice received by government from multiple sources including the professional public service, the Chief Scientist, the CSIRO, the Bureau of Meteorology, the Climate Change Authority and non-government institutions and organisations.
The Bills do not seek to establish a head of power or a legislative basis for the Commonwealth to deliver the target of net zero emissions in an area of shared Commonwealth-State responsibility.
The Bills also do not, and cannot unless advanced by the Government, guarantee funding for the operations of the Climate Change Commission. In this sense, without the support of Government, the capacity to achieve their legislative goals is seriously hindered.
The Bills are not a plan to reach net zero emissions. This is not a criticism of the intent of the Bills but it is important to recognise that they, of themselves, do not chart a policy agenda for achieving net zero emissions.
The Bills seek to legislate certain reporting and policy development processes. Many of these form part of the existing approach of government. For example, the Australian Government has already adopted: an emissions budget approach to achieving its Paris Agreement target for the 2020-2030 period; the development of adaptation plans; the implementation of a technology road map; and is currently developing a long-term emissions reduction plan in the lead up to COP 26 in November 2021.
The Government also implements what is world best practice in the reporting of Australia’s emissions profile, which was recognised by many submitters to this inquiry.
The Bills do however highlight the value of regularising many of these important steps in policy development to reduce emissions and achieve net zero emissions.
These Bills represent one approach, but it is not the only pathway for achieving Australia’s climate change targets and goals.
This was highlighted in the submission to this inquiry from the Australian Industry Group:
We emphasise that there are other ways of achieving the same features and objectives of the Bills….. For instance: a national long-term emissions goal could be reflected in authoritative policy statements, rather than legislation. There is a spectrum of certainty that policies and legislation can provide. A policy statement could provide comparable guidance and confidence to agencies and industry, as long as there was sufficient clarity from government and corresponding commitments from the opposition. Australia’s Long Term Strategy for emissions reduction, expected in 2021, would be one opportunity to articulate this.
Concluding Comments
Australia must continue its path to a net zero economy as part of global action to address climate change. This transformation is not only the right thing to do but will present significant new economic opportunities for Australia through the deployment of new technology which capitalises on the advantages our nation possesses in renewable and other clean energy production; and the potential of low emissions services and manufacturing.
The Australian Government is committed to releasing a long-term emissions reduction strategy in the lead up to COP 26 which is being held in November 2021. This strategy should:
Include a national commitment to achieving net zero emissions by 2050. The Government should consider the best ways to provide certainty to business and the community in relation to this commitment.
Confirm the Government will continue to develop emissions budgets for the Australian economy for the period to 2050. We recommend ten-year emissions budgets with five yearly reviews.
Include a commitment to the development of regularised adaptation and resilience plans and risk assessments for the impact of climate change.
Commit the Government to regularly review and update its low emissions technology plans and emissions reduction plans consistent with delivering the target of net zero emissions by 2050.
The Government should increase resourcing and enhance the role of the existing Climate Change Authority as a source of advice on emissions reduction strategies for key sectors of the economy.
Trent Zimmerman MPBridget Archer MP
Member for North SydneyMember for Bass