Additional comments—Coalition Senators'

Background

1.1The bill establishes an independent National Energy Transition Authority (NETA) which possesses law reform functions and advice functions to guide the development of plans at a state level - which are pre-existing - to the affected communities of the energy transition.

1.2Further to that we note that Australia currently faces a complex set of energy policy challenges, subsequently, Australia must have an active, detailed policy programme to achieve the goal of net zero emissions by 2050.

1.3According to the explanatory memorandum, the Parliament may appropriate money for NETA and the Finance Minister may give directions on how this capital is expended. However. there is no estimate of the ongoing cost of NETA and its functions to the budget.[1]

1.4The Government should be protecting taxpayers from unnecessary costs in regard to the transition to clean energy whilst sending the correct market signals.

Potential Issues

1.5Engineers Australia have noted that the bill needs a broader and stronger remit to ensure that the focus and guidance to transition to clean, reliable and affordable energy in a timely fashion can be completed.[2]

1.6AGL have noted that the proposal in the Bill for NETA to help attract public and private capital for future industries and social infrastructure may conflict and overlap with the purpose of The Australian Renewable Energy Agency (ARENA) if it was to be applied to renewable energy projects rather than purely focussed on the workforce transformation.[3]

1.7As an example of further conflict, AGL in their submission cited the fact that a majority of the states have already implemented bodies to facilitate workforce modelling and planning. With their presence at a micro level, these bodies, such as the NSW Electricity Jobs Board, have already commenced assisting communities in the transition to low carbon emissions industries and may be better equipped to facilitate this due to their local presence.[4]

1.8Some submitters indicated that the Government does not need to provide funding or support through NETA as private investment is the main tool for a successful and sustainable company.

Conclusion

1.9Coalition Senators note the various concerns raised by submitters and the other concerns regarding state and federal statutory duty overlap.

1.10Instead of creating another government body, the market should be further supported to invest in low and zero emissions energy and transmission infrastructure.

1.11Under the Coalition Government we delivered lower emissions while protecting our economy, jobs and investment. Our emissions fell 20 per cent while our economy grew 45 per cent, and we beat our Kyoto-era targets by 459 million tonnes.

1.12We signed Australia up to net zero emissions at the Paris and Glasgow COPs.

1.13This was a committed spend of $22 billion on low emissions technologies over 10 years, which would leverage up to $132 billion in private sector investment while supporting 160,000 jobs. The IPCC report makes it clear that enhancing technology innovation is critical for accelerated climate action.

1.14Under our Government, Australia became a world leader in the deployment of renewables, with the share of renewable energy generation rising from record lows in 2008 to nearly 30 per cent of generation. More than $40 billion was invested in renewables since 2017, with record uptake over the last 5 years of the Coalition government. In 2021, Australia installed 6.1 gigawatts of renewable capacity, more than what was installed in the whole period between 2007 and 2013.

1.15We look forward to building on our record of emissions reduction with new policies as the alternative government.

1.16Coalition Senators are in agreement with the majority report’s recommendation that this bill not be passed.

Senator Andrew BraggSenator Dean Smith

Deputy ChairMember

Liberal Senator for New South WalesLiberal Senator for Western Australia

Footnotes

[1]EM—Part 5, Clause 53, p. 6.

[2]Engineers Australia, Submission 17, p. 1.

[3]AGL, Submission 14, p. 2–3.

[4]AGL, Submission 14, p. 3.