Referral of the Bills
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On 9 November 2020, Ms Zali Steggall MP introduced the Climate Change (National Framework for Adaptation and Mitigation) Bill 2020 (the substantive Bill) and the Climate Change (National Framework for Adaptation and Mitigation) (Consequential and Transitional Provisions) Bill 2020 (the consequential Bill) in the House of Representatives.
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On 11 November 2020, the House of Representatives Selection Committee referred both Bills to the House of Representatives Standing Committee on the Environment and Energy for inquiry and report.
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On the same day, the Committee resolved to open the inquiry for public submissions. The Committee published details of the inquiry on its website, and issued a media release announcing the inquiry.
Conduct of the inquiry
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The Committee’s inquiry received 2047 written submissions as listed in Appendix A. Three exhibits were also received and are listed in Appendix C.
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The Committee’s inquiry was the subject of two email campaigns originating from GetUp! and the Australian Conservation Foundation (ACF). In all, the Committee received 4531 emails as a result of these campaigns.
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The Committee considered how best to treat these contributions, observing that many expressed general concerns about climate change and the need for action, but few directly addressed the content of the Bills. The Committee decided to accept and publish a sample from each campaign under a single submission number.
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Three public hearings were held on 29 January, 1 February, and 24 March 2021 during which 49 witnesses gave evidence in person or via video conference or teleconference. Public hearing details are listed in Appendix B.
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The Committee is grateful to all the individuals and organisations who contributed to the inquiry.
Purpose and overview of the Bills
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The Bills recognise that climate change comes ‘with immediate and deepening risks to our natural environment, economy and way of life’, and set out ‘a clear framework for development of national plans as our climate changes, and for progress to be rigorously monitored and reported’. According to the Explanatory Memorandum for the substantive Bill, the framework set out in the Bill will ensure that Australia has:
a positive response to the challenges of climate change that is effective, fiscally responsible and fair, and part of an effective international effort;
national plans for adapting to a changing climate, so that the different parts of our continent and economy can respond positively to changing physical conditions and international policies;
national plans for reducing greenhouse gas emissions, to meet emissions reduction targets that align with scientific imperatives and state government and international commitments, which may change over time; and
transparent monitoring, reporting and accountability for national adaptation planning and emission reduction actions, with an independent Climate Change Commission to advise Government and Parliament.
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The specific objects of the Bills are to establish a national climate change adaptation and mitigation framework and a Climate Change Commission (CCC). The proposed framework contains measures to establish and implement:
a national climate change risk assessment;
a national adaptation plan;
a target to reach net zero emissions by 31 December 2050;
a mechanism to set emissions budgets and implement emissions reduction plans;
a Parliamentary Joint Committee on Climate Adaptation and Mitigation.
Key provisions of the Bills
Climate Change (National Framework for Adaptation and Mitigation) Bill 2020
Part 1: Introduction
Division 1: Preliminary
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Clause 3 of the Bill specifies the objects of the Bill and acknowledges that climate change is a serious challenge to Australia’s prosperity and security, requiring a planned transition towards a net zero emissions economy and implementation of adaptation measures to protect livelihoods, business and the environment.
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The core object of the Bill is to establish a framework to address the challenge of climate change through:
(a) setting a target of achieving net zero emissions by a target day (which is 31 December 2050 unless the Minister determines an earlier day because of a significant change in relevant factors);
(b) providing for a system of emissions budgeting;
(c) assessing the risk of, and preparing for, climate change impacts;
(d) assisting the national economy to adapt to climate change;
(e) establishing an independent body to ensure accountable and transparent plans to manage the climate challenge;
(f) aligning government and the private sector in the assessment of climate risks;
(g) providing policy certainty to assist the private sector in decision making;
(h) assisting and guiding the taking of action by government and the community to reduce emissions in order to meet Australia’s obligations under the following:
(i) the Climate Change Convention;
(ii) the Kyoto protocol;
(iii) the Paris Agreement;
(iv) any other international agreement relating to climate change.
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Subclause 3(1)(b) in particular states:
that decisions under this Act should be consistent with limiting the increase in global warming to well below 2°C and pursuing efforts to limit it to 1.5°C above pre-industrial levels.
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Clause 5 of the Bill defines key terminology in the Bills.
Division 2: Guiding principles
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Clauses 9 through 16 list the guiding principles that decision makers must have regard to in relation to the performance of functions or duties, or exercise of powers under the Bill. These include:
Clause 10, effective, efficient and equitable action;
Clause 11, informed decision making, including:
a.
the best available academic peer reviewed research and public reports on the contributing causes and potential impacts of climate change [sources for such research are set out in subclause 11(2)];
b.
any Technology Investment Roadmap;
c.
the most recent low emissions technology statement;
Clause 12, risk-based, integrated decision making which requires:
a.
assessing the competing long-term, medium-term and short-term environmental, economic and community consequences relating to climate change; and
d.
explicitly addressing the relevant climate change risks; and
e.
applying the precautionary principle to prevent likely serious or irreversible loss;
Clause 13, fiscal responsibility, where consideration must be given to:
a.
the direct costs of climate change;
b.
their impact on weakening asset values, corporate profitability, national productivity and public finances;
c.
these costs are highly likely to be substantially greater than the costs of mitigating climate change;
d.
the costs of early action to mitigate climate change are highly likely to be substantially lower than the costs of later action; and
e.
the growing burden of debt upon future generations which, in failing to act early, will grow significantly;
Clause 14, fair employment transition which requires:
a.
applying the principle of community engagement to any affected communities;
b.
pursuing sustainable economic, social and ecological solutions for those communities;
c.
prioritising employment transition opportunities to new or existing industries within those communities;
d.
offering appropriate education and training for those opportunities;
e.
allowing reasonable time for implementation of transition solutions for those communities;
f.
for those unable to pursue transition opportunities—without undermining the incentives for transition, providing a mechanism for compensated redundancy or voluntary redeployment of workers to other sites where the workers wish to continue working;
Clause 15, community engagement and self-determination, which requires:
a.
providing appropriate information to members of affected communities, especially vulnerable or marginalised communities; and
b.
enabling those communities to be involved in its determination or implementation, with adequate public consultation;
Clause 16, national and international cooperation, which requires regard to the pursuit of coherent, clear, effective policy frameworks across the Commonwealth, States and Territories; and ensuring the fulfilment of Australia’s international obligations. It also requires that Australia demonstrate international leadership by reducing emissions through technology and considering opportunities as both a potential generator of renewable energy and greenhouse gas sink.
Part 2: National climate change risk assessment
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Clause 17 requires the CCC to prepare and give to the Minister national climate change risk assessments, which identify the full risks of climate change to Australia. The initial assessment is to be prepared within one year of the commencement of the proposed Act and be published on the CCC’s website as soon as practicable after its completion. Subsequent assessments are required to be undertaken at least every five years. Evidence commissioned to support the risk assessment must also be published on the CCC’s website.
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Clause 18 outlines the factors that that a national climate change risk assessment must take into account including:
(a) economic, social, health, water and food security, environmental, ecological, and cultural effects of climate change, including effects on Indigenous Australians;
(b) the distribution of the effects of climate change across society, taking particular account of vulnerable groups or sectors;
(c) Australia’s relevant obligations under international agreements;
(d) how the assessment aligns or links with any other relevant national risk assessments;
(e) current effects and likely future effects of climate change;
(f) the best available academic peer reviewed research and public reports including that of the Bureau of Meteorology, and Commonwealth Scientific and Industrial Research Organisation;
(g) economic, financial and fiscal advice from financial regulators, including the Australian Prudential Regulation Authority, the Australian Securities and Investments Commission and the Reserve Bank of Australia;
(h) opportunities arising for Australia’s economy, society, regions and environment as a result of the effects of climate change;
(i) existing State and Territory strategies, policies and proposals in relation to climate change;
(j) any other relevant factors.
Part 3: National adaptation plan
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Clause 19 requires that the Minister prepare a national adaptation plan in response to each national climate change risk assessment. The plan should be prepared no later than one year after the relevant risk assessment is made publicly available. A national adaptation plan must set out the following:
(a) Australia’s objectives to protect against and mitigate risks as identified in the national climate change risk assessment;
(b) the strategies, policies, and proposals for meeting those objectives;
(c) the time frames for implementing the strategies, policies, and proposals;
(d) how the matters in paragraphs (a) to (c) address the most significant risks identified in the most recent national climate change risk assessment;
(e) the measures and indicators that will enable regular monitoring of and reporting on the implementation of the strategies, policies, and proposals;
(f) how the strategies, policies and proposals will be funded.
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Clause 19 also provides that the Minister must consider the factors listed in section 18 and any relevant advice or reports from the CCC, including the need to undertake public consultation.
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Clause 20 requires the national adaptation plan to be tabled in each House of Parliament within 15 sitting days after its preparation, and that it must also be published on the CCC’s website as soon as practicable thereafter.
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Clause 21 provides that the Commission must provide the Minister with an annual progress report that evaluates the implementation of the adaptation plan and its effectiveness. The Minister must prepare a statement in response to the progress report to be tabled in Parliament within 15 siting days of its completion and published on the CCC’s website as soon as practicable thereafter.
Part 4: Emissions reduction target
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Clause 22 sets a target of net zero emissions for Australia to be reached by 31 December 2050 or earlier if determined by the Minister.
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Clauses 23 and 24 allow for the target to be reviewed and for a recommendation to amend the target date to be made and implemented. A change to the target can only be recommended in certain circumstances, set out in Clause 24.
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Clause 25 provides that the CCC must report to the Minister on the effect of Australia’s fossil fuel export emissions in meeting the objects of the proposed Act. It sets out details for that reporting which must be made public.
Part 5: Setting emissions budgets etc.
Division 1: Emissions budgets
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Clause 26 requires that the Minister set an emissions budget for a prescribed period. Importantly, the Minister must ensure that the net emissions for that period do not exceed the emissions budget. The Minister must seek advice from the CCC on the proposed budget, and that advice must be published along with the Minister’s response to that advice.
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Clause 27 specifies the matters relevant to setting an emissions budget upon which the CCC must provide advice to the Minister:
(a) the amount of emissions that will be permitted in each emissions budget period;
(b) how to measure progress towards meeting emissions budgets and the Target;
(c) the means by which emissions budgets and the Target may be met (including pricing and policy methods);
(d) the proportion of an emissions budget to be met through reductions of emissions, and removal of greenhouse gases, in Australia;
(e) the amount by which emissions of each greenhouse gas should be reduced to meet emissions budgets and the Target.
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Clause 27 also requires that in providing such advice, the CCC must have regard to the Bill’s guiding principles and matters set out in clause 28. Prior to providing its advice, the CCC must also make its advice public, and invite submissions on the advice.
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Clause 28 outlines the matters relevant to emissions budgets that must be considered by the CCC in preparing advice for the Minister, and the Minister when setting an emissions budget, including:
key opportunities and risks for reduction of emissions, and removal of greenhouse gasses;
emissions and projected emissions for the budget period;
scientific advice and technological uptake and developments;
emissions budgets that maintain energy security, reliability and affordability;
public consultation on the emissions budget;
impacts of actions to achieve the emissions budget including its ability to adapt to climate change across states and territories, between generations, on regional, rural and remote Australia, between employers and workers, on economic circumstances, and land use; and
responses by all parties to the Paris Agreement, Climate Change Convention or other international agreements.
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Clause 29 requires that at the end of each emissions budget period, the CCC must report on and evaluate the progress towards the emissions budget during the period. The Minister must prepare a statement in response that is to be tabled in Parliament within 15 sitting days of its completion and published on the CCC’s website as soon as practicable thereafter.
Division 2: emissions reduction plans
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Clause 30 provides that the Minister must prepare an emissions reduction plan setting out the policies and strategies for meeting each emissions budget. The Clause specifies the matters to be included in the plan, the consultations that must be undertaken in its formulation and the timing for the tabling and publication of the plan.
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Under the Clause, an emissions reduction plan prepared by the Minister must include:
(a) sector-specific policies to reduce emissions and increase removals of greenhouse gases; and
(b) a multi-sector strategy to meet emissions budgets and improve the ability of those sectors to adapt to the effects of climate change; and
(c) a strategy to mitigate the impacts that reducing emissions and increasing removals of greenhouse gases will have on employees and employers, rural and regional Australia, Indigenous Australians and wider communities, including the funding for any mitigation action; and
(d) policies, strategies and proposals for the deployment and development of low emissions technologies; and
(e) any other policies or strategies that the Minister considers necessary.
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Clause 30 also requires the Minister to obtain and consider the advice of State and Territory ministers with responsibility for climate change or emissions reduction; and the CCC. The Minister must cause an emissions reduction plan to be tabled in Parliament within 15 sitting days of its completion and published on the CCC’s website as soon as practicable thereafter.
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Clause 31 requires that the CCC is to provide the Minister with advice on the direction of the policy required in the emissions reduction plan for an emissions budget period, no later than 24 months before the beginning of the relevant period.
Part 6: Climate Change Commission
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Clauses 32 to 34 provide for the establishment, functions and powers of the CCC.
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Clause 32 establishes the CCC as a listed entity and outlines the accountability of the CEO.
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Clause 33 establishes the functions of the CCC as:
(a) to advise the Minister to enable the preparation of emissions budgets;
(b) to advise on any necessary amendments to emissions budgets;
(c) to advise the Minister to enable the preparation of emissions reduction plans;
(d) to monitor and report on progress towards meeting emissions budgets and the Target;
(e) to prepare national climate change risk assessments and low emissions technology statements;
(f) to prepare reports on the implementation of national adaptation plans;
(g) to conduct reviews under [the Carbon Credits (Carbon Farming Initiative) Act 2011; the National Greenhouse and Energy Reporting Act 2007; and this Act].
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Clause 34 provides that the CCC has power to do all things necessary or convenient to be done for or in connection with the performance of its functions.
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Clause 35 provides that the CCC is not subject to direction by, or on behalf of, the Commonwealth Government in relation to its functions or powers.
Division 2: Membership of the Commission etc.
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Clause 36 provides for the membership of the CCC, which consists of the Chair, Australia’s Chief Scientist and between five and seven other members.
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Clause 37 provides that each member of the CCC (except the Chief Scientist) is to be appointed by the Minister by written instrument. The clause also provides that in making appointments to the CCC, the Minister must ensure that its membership consists of persons with experience or knowledge in business competitiveness; climate change policy; climate science; economic analysis and forecasting; energy production and supply; financial investment; regional development; industrial relations; agriculture; and technology development and diffusion.
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Clause 37 further requires that:
(a) a minimum of two members of the Commission must hold expertise in climate science and climate policy; and
(b) a minimum of one member of the Commission must be an Indigenous Australian.
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Clause 38 requires that appointments to the CCC be must be referred by the Minister for approval by a Parliamentary Joint Committee on Climate Adaptation and Mitigation. The Committee is required to report its decision to both Houses of Parliament.
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Clause 39 provides that appointees to the CCC, other than the Chief Scientist, may be for a period not exceeding 10 years.
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Clause 40 outlines the provisions for Acting Members of the CCC.
Division 3: Terms and conditions for members of the Commission
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Clauses 41 to 47 outline the terms and conditions for members of the CCC.
Division 4: Parliamentary Joint Committee on Climate Adaptation and Mitigation
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Clauses 48 to 50 establish a Parliamentary Joint Committee on Climate Adaptation and Mitigation, which is to be appointed according to the practices of the Parliament and consist of 11 members. These clauses also establish the powers, proceedings and functions of the Committee.
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The proposed functions of the Committee are to:
approve the appointment of CCC members;
review the administration and expenditure of the CCC; and
review any matter in relation to the CCC referred by the Minister or either House of the Parliament.
Division 5: Decision making of the Commission
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Clauses 51 to 56 outline the decision-making processes to be used by the proposed CCC including the convening, quorum, voting, conduct and minuting of CCC meetings.
Division 6: Chief Executive Officer of the Commission
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Clauses 57 to 66 outline the role, appointment, and terms and conditions of the Chief Executive Officer of the CCC.
Division 7: Staff of the Commission
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Clauses 67 to 69 outline the terms upon which staff of the CCC, persons assisting the CCC and consultants to the CCC are to be engaged.
Part 7: Miscellaneous
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Clauses 70 to 75 establish a range of miscellaneous provisions.
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Clause 70 sets out matters that must be included in the annual report to be prepared by the CCC and provided to the Minister. One of these matters is a low emissions technology statement that should include:
(i) a summary of progress towards the Commonwealth’s defined technology goals;
(ii) an update of global technological developments;
(iii) a review of the Clean Energy Finance Corporation and Australian Renewable Energy Agency’s investment portfolios;
(iv) any recommendations to improve the performance of those agencies in assisting efforts to deploy and develop low emissions technologies.
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The Bill also requires that:
The Minister must respond within three months of receiving the annual report. The response must be tabled in Parliament and published on the CCC’s website.
The Minister or CCC may request information from a constitutional corporation as to its governance and management of the risks and opportunities arising from climate change. The information must be provided by the requesting party to either the Minister or the CCC and penalties apply for non-compliance.
Climate Change (National Framework for Adaptation and Mitigation (Consequential and Transitional Provisions) Bill 2020
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The consequential Bill makes amendments to Commonwealth laws to support the operation of the substantive Bill.
Schedule 1: repeals and amendments
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Part 1 repeals the Climate Change Authority Act 2011.
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Part 2, Items 2 to 20 make consequential amendments, namely to omit ’Climate Change Authority’ and substitute ’Climate Change Commission’ in relevant sections of the:
Australian Security and Investments Commission Act 2001;
Carbon Credits (Carbon Farming Initiative) Act 2011;
Clean Energy Regulator Act 2011;
Competition and Consumer Act 2010; and
National Greenhouse and Energy Reporting Act 2007.
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Part 3, Items 21 and 22 require amendment of the Public Governance and Accountability Act 2013 to insert a duty upon the accountable authority of a Commonwealth entity to consider climate change impacts when performing functions or duties, or exercising powers. Potential risks from, and impacts of, climate change may include:
long and short term economic, environmental, health and social impacts;
beneficial and detrimental impacts;
direct and indirect impacts; and
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A Commonwealth entity’s annual report must include information about the climate risks relevant to the performance of its functions, duties and exercise of power.
Schedule 2: transitional provisions
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Schedule 2 makes transitional and administrative provisions including:
definitions and reviews of relevant legislation;
transition of the Climate Change Authority’s CEO, staff and consultants;
the Authority’s final annual report, transfer of records and documents;
termination of Authority appointments; and
the Minister’s power to make rules required or permitted by the Bills.
Existing frameworks
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The Bills propose a change in how Australia mitigates and adapts to climate change, seeking to amend the current framework. This section broadly outlines Australia’s international climate change obligations and commitments, and Australia’s current climate change frameworks including the key responsibilities held by Australian Government agencies and existing domestic climate change architecture. Also outlined is the climate change framework of the United Kingdom upon which aspects of the Bills are modelled.
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Australia’s climate change framework is based upon the international commitments made as part of the global effort to combat climate change. Domestic architecture at a Commonwealth level has been developed to give effect to those commitments. The Commonwealth also seeks to work with Australia’s states and territories to fulfil Australia’s international commitments.
International obligations and commitments
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Australia is a Party to various international climate agreements including the Vienna Convention for the Protection of the Ozone Layer and its Montreal Protocol, the United Nations Framework Convention on Climate Change (UNFCCC) and its Kyoto Protocol, and the Paris Agreement.
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The UNFCCC came into force in 2005 under the terms of the Kyoto Protocol, which committed industrialised countries to limit and reduce greenhouse gas emissions in accordance with agreed individual targets.
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The Paris Agreement, which built upon the UNFCCC’s objectives, entered into force in 2016. The Paris Agreement is a legally binding international treaty that aims to limit global warming, by the middle of this century, to well below 2 and preferably to 1.5 degrees Celsius, compared to pre-industrial levels. It was adopted by 196 Parties and requires all Parties to transparently report national emissions, progress towards targets, information on mitigation policies and adaptation actions and support provided to developing countries. Parties are also required to undergo international audit and peer review according to reporting and review rules. Australia became a Party to the Paris Agreement on 9 December 2016.
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According to the Department of Agriculture, Water and the Environment (DAWE):
Under the Paris Agreement, Australia is expected, ‘as appropriate,’ to:
engage in adaptation planning and implementation through national adaptation plans, vulnerability assessments, monitoring and evaluation (Article 7).
build the resilience of socioeconomic and ecological systems, including through economic diversification and sustainable management of natural resources (Article 7).
communicate plans, actions, and support needs through an Adaptation Communication (Article 7).
contribute to the global stocktake to assess progress towards achieving commitments under the Paris Agreement and its long-term goals (Article 14).
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Under its UNFCCC obligations, Australia submits a National Communication on Climate Change report (every four years) and biennial reports (every two years) to the UNFCCC Secretariat which include details on Australia’s climate change policies and measures. These reports are an important aspect of the transparency system under the UNFCCC and undergo technical international review. Australia’s most recent National Communication on Climate Change was submitted in December 2017 and the most recent biennial report in December 2019.
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Australia also prepares national inventory reports annually and produces a range of domestic publications including a quarterly inventory report and annual emissions projections.
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Australia has emissions reduction targets for the period to 2020 under the Kyoto Protocol and UNFCCC and for the period to 2030 under the Paris Agreement (the Agreement). The Agreement requires all Parties to communicate a nationally determined contribution (NDC), including an emissions reduction target, every five years (the first to apply from 2020), and to increase the ambition of each successive NDC. Australia’s current NDC is a commitment to a 26% to 28% reduction in emissions below 2005 levels by 2030.
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Australia meets or exceeds its emissions reduction requirements, as agreed through international treaties. For example, Australia has exceeded its Kyoto Protocol targets and is on track to meet and exceed its 2030 Paris target.
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The next major opportunity for Australia to present its long term emissions reduction strategy is at the 26th UNFCCC climate summit in Glasgow in December 2021 (known as COP 26), noting that nations are encouraged but not required to present long term strategies at COP 26.
National emissions reduction and climate change adaptation frameworks
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Three Australian Government agencies share responsibility for effecting and assessing the Commonwealth’s commitments at a domestic level – the Department of Industry, Science, Energy and Resources (DISER); DAWE; and the Climate Change Authority (CCA).
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DISER develops and administers the Australian Government’s domestic actions to reduce Australia’s greenhouse gas emissions and meet Australia’s obligations under the Paris Agreement. This includes:
developing and coordinating domestic climate change policy;
administering climate change programs to help reduce emissions;
developing and coordinating renewable energy policy and regulation;
engaging with stakeholder groups and the community on climate priorities;
supporting business and industry to innovate and adopt smarter practices and technologies; and
helping the land and agriculture sector reduce greenhouse gas emissions and adapt to the changing environment.
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DAWE administers Australia’s climate change adaptation strategy and climate science activities. In particular, Australia’s overarching climate adaptation framework is the National Climate Resilience and Adaptation Strategy which was released at the UNFCCC summit in 2015. The Strategy:
brings together key decisions made on climate adaptation;
provides a set of principles to guide effective adaptation and resilience building; and
highlights decisions made between the Australian and state and territory governments on adaptation, including government roles and responsibilities for adaptation and the national priority areas for action.
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In early 2021, the Australian Government announced that it would develop a new strategy to be unveiled prior to COP 26 which will ‘provide a roadmap towards a more climate resilient Australia’.
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The CCA provides independent, expert advice on climate change policy, undertaking reviews and making recommendations on Australian Government programs which currently include the Emissions Reduction Fund (which is ‘one of [the] largest and most robust offset schemes in the world’), the National Greenhouse and Energy Reporting System, and other matters as requested by the Minister responsible for climate change or the Australian Parliament.
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Since its establishment in 2012, the Authority has published a total of 23 reviews and reports. Most recently, in 2020 the CCA issued a report exploring how Australia can reduce greenhouse gas emissions to meet both its Paris Agreement target and subsequent, more ambitious targets, prospering in a world transitioning to net zero emissions. The CCA’s upcoming work program will include statutory reviews of the National Greenhouse and Energy Reporting legislation and Emissions Reduction Fund (Carbon Credits) legislation. In 2020-21, the CCA’s future work program will also include:
… research examining how Australia can position itself to take advantage of a world transitioning to net zero emissions. The authority intends this work to be complementary with the Government’s Technology Investment Roadmap and Low Emissions Technology Statement, and the development of the Government’s Long-Term Emissions Reduction Strategy in the lead-up to the UNFCCC’s 26th Conference of the Parties (COP) …
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The passage of the Climate Bills 2020 would have the effect of abolishing the CCA, through the repeal of the Climate Change Authority Act 2011, and replacing it with the new CCC.
Domestic emissions reduction architecture
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Australia regulates the monitoring, accounting and reporting of national emissions reduction. Australia’s system is recognised as world leading: according to DISER, ‘Australia’s system of national greenhouse accounts has been designed to be one of the most comprehensive, transparent and timely emissions reporting systems in the world’, and its reporting is ‘definitely well above or more accurate in the latest information being reported…across the board, it is world class’.
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The core legislative elements of this architecture include:
National Greenhouse and Energy Reporting Act 2007 (NGER) – establishes the National Greenhouse and Energy Reporting Scheme, which provides the framework for reporting and disseminating company information about greenhouse gas emissions, energy production, energy consumption and other information to support the Government’s international treaty obligations and domestic climate program implementation. The Act also establishes the Safeguard Mechanism, which applies emission limits to Australia’s highest emitting facilities.
Australian National Registry of Emissions Units Act 2011 (ANREU) – establishes the secure electronic system used to track the location and ownership of Australian carbon credit units issued under the Emissions Reduction Fund (ERF), as well as emission units issued under the Kyoto Protocol.
Carbon Credits (Carbon Farming Initiative) Act 2011 (CFI), now part of the ERF – establishes a framework to credit action to reduce emissions, by issuing Australian carbon credit units (ACCUs). Credits are issued to projects across the economy, for reducing emissions or storing carbon. Projects registered in the ERF scheme must meet eligibility criteria, including additionality tests, and comply with an approved method (technical rules). The CFI Act also provides that the Clean Energy Regulator may conduct lowest cost carbon abatement purchasing on behalf of the Commonwealth through bi-annual reverse auctions.
Renewable Energy (Electricity) Act 2000 – encourages the additional generation of electricity from renewable sources in an effort to reduce greenhouse gas emissions from the electricity sector and to ensure that renewable energy sources are ecologically sustainable.
Clean Energy Regulator Act 2011 – establishes the Clean Energy Regulator as a non-corporate Commonwealth entity with administrative responsibilities for the NGER, ANREU, CFI and Renewable Energy Acts.
Australian Renewable Energy Agency Act 2011 – establishes the Australian Renewable Energy Agency, to improve the competitiveness of renewable energy technologies and increase the supply of renewable energy in Australia.
Clean Energy Finance Corporation Act 2012 – establishes the Clean Energy Finance Corporation as a statutory authority responsible for facilitating increased flows of finance into the clean energy sector.
Climate Change Authority Act 2011 – establishes the CCA, an independent statutory body to provide the Government with expert advice on climate change policies, including through regular reviews of the CFI and NGER Acts.
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It should be noted that this Committee has previously engaged with parts of this architecture through its inquiry and report on the National Greenhouse and Energy Reporting Amendment (Transparency in Carbon Emissions Accounting) Bill 2020.
State and territory frameworks
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Complementing the existing Commonwealth architecture are commitments by each of Australia’s states and territories to reduce emissions within those jurisdictions, contributing to the national effort. Each Australian state and territory has made a commitment to achieving a target of net zero emissions either by or before 2050.
The Australian Government collaborates with state and territory governments on emissions reduction through various fora, including the National Greenhouse Gas Inventory Committee, the Energy National Cabinet Reform Committee (ENCRC) and the Energy Ministers’ Meeting (EMM).
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State and territory governments play a major role in direct adaptation action, primarily through their planning laws and investments in public infrastructure. They also focus on ensuring appropriate regulatory and market frameworks are in place, providing regionally appropriate information and delivering an adaptation response. Like the Commonwealth, all states and territories have adaptation plans and strategies in place and have also undertaken assessments of climate risks. Through a series of energy and emissions reduction deals, the Commonwealth provides funding to assist states and territories to act on their plans.
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The Committee received submissions to this inquiry from some state and territory agencies, and local government authorities. These perspectives will be considered in Chapter 2.
United Kingdom climate change framework
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The Bills before the Committee draw heavily from the climate change mitigation framework in the United Kingdom. The key similarities between these instruments will form part of the focus of Chapter 2.
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The Climate Act 2008 (UK) is the United Kingdom’s primary legislative instrument governing its action to address climate change. It provides a comprehensive framework for climate change mitigation and adaptation, underpinned by legally binding emissions targets for 2050 and in the years prior. It assigns clear duties and responsibilities for action based around independent expert advice and monitoring.
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The framework enshrined in the Climate Act 2008 (UK) has four key elements:
A long-term goal: enshrined as a legally binding target within the Act to reduce the UK’s greenhouse gas emissions to net zero by the year 2050 achieved via ‘an assessment of the risks to the UK from the current and predicted impacts of climate change to take place every five years.’
A pathway to the long-term goal: legally binding carbon budgets over five-year periods, legislated 12 years in advance towards 2050; and a requirement for ‘the Government to set out its objectives for adaptation and a programme to meet them’.
A requirement for policies to deliver the pathways: an obligation for the government to develop and publish policy programmes to deliver legislated emissions reductions and to address the risks identified in the latest climate change risk assessment.
An independent advisory body: the Climate Change Committee (CCC) was created under the Act:
… as the independent statutory adviser. It includes two separate Committees (or boards) covering mitigation and adaptation. Members are experts, impartial and supported by a secretariat. Advice is provided on the appropriate level of UK carbon budgets, and on key climate risks facing the UK. The CCC also monitors progress on reducing emissions (every year) and adapting to climate change (every two years). The Government is obliged to respond to the CCC’s assessments, creating an annual cycle of policy development.