Bills

Climate Change and Greenhouse Emissions Reduction (Targets) Amendment Bill

Introduction and First Reading

The Hon. D.J. SPEIRS (Black—Minister for Environment and Water) (16:34): Obtained leave and introduced a bill for an act to amend the Climate Change and Greenhouse Emissions Reduction Act 2007. Read a first time.

Second Reading

The Hon. D.J. SPEIRS (Black—Minister for Environment and Water) (16:34): I move:

That this bill be now read a second time.

I am pleased to introduce the Climate Change and Greenhouse Emissions Reduction (Targets) Amendment Bill 2021 to update the emissions reduction and renewable electricity targets in the Climate Change and Greenhouse Emissions Reduction Act 2007, in line with global efforts to reduce greenhouse gas emissions and to limit the worst effects of climate change. The changes will enshrine provisions that relate to our government's current policy targets for greenhouse gas emissions reduction and renewable energy generation in legislation. These policy targets are:

net zero emissions by 2050;

reduce net emissions by more than 50 per cent by 2030 (from 2005 levels); and

achieve 100 per cent net renewable energy generation by 2030.

The emissions reduction targets are aligned with the Paris Agreement on the climate change goal to limit global warming to well below 2°, preferably to 1.5° Celsius, compared to pre-industrial levels. Legislating our current policy targets will send a strong signal to South Australians, and more broadly to people across the nation and the globe, that South Australia is serious about reducing emissions and addressing climate change.

The draft bill amends the targets set out in section 3 and section 5 of the Climate Change and Greenhouse Emissions Reductions Act 2007. The principal greenhouse emissions reduction target (the SA target):

…to reduce by 31 December 2050 greenhouse gas emissions within the state by at least 60% to an amount that is equal to or less than 40% of 1990 levels—

will be replaced with a target relating to net zero emissions by the year 2050.

A new interim target that relates to the Marshall Liberal government's policy target, to reduce net greenhouse gas emissions by more than 50 per cent from 2005 levels by 2030, will also be included. The two existing renewable electricity targets, to increase renewable electricity use and generation by at least 20 per cent by 2014, were achieved in 2010 and 2011 and will be replaced. The bill replaces these targets with a new target reflecting our renewable energy ambitions to achieve 100 per cent net renewable electricity generation by the year 2030.

The bill makes minor flow-on amendments as a consequence of these changes to the targets. Our government is confident that, with continuing bipartisan support and a focus on practical action, we will achieve our targets and maximise the economic benefits from a shift to a low emissions future. The renowned climate economist Professor Ross Garnaut, in his 2020 report for the South Australian government 'South Australia's climate change challenges and opportunities', stated that a 50 per cent reduction in emissions by 2030 is within reach, with major contributions from economic sectors, such as low emissions manufacturing and mining, renewable electricity and hydrogen and transport and carbon storage in land and sea.

Professor Garnaut also stated in his report that regional South Australia in particular can prosper exceptionally by embracing the zero emissions opportunities. South Australia has already reduced its net greenhouse gas emissions by 33 per cent from 2005 levels based on the 2018-19 data released in 2021. In the same period, gross state product grew by 26 per cent. The vision and investment made by government and the willingness of the private sector and our regional communities to embrace a low emissions future have been key to our success.

The Marshall Liberal government is rapidly increasing renewable energy in this state. We are solving the challenges of integrating high proportions of intermittent renewables through increasing battery storage, fast-tracking a new energy interconnector with the state of New South Wales and supporting innovative approaches to managing energy demand. With world-class natural resources in solar and wind, South Australia is currently ranked second only to Denmark for the annual variable renewable energy that it generates. In just 15 years, South Australia has transitioned its energy system from 1 per cent renewable energy generation to over 60 per cent, and we are on our way to achieving 100 per cent net renewable electricity generation by 2030.

South Australia already has around $20 billion of renewable energy projects in the development pipeline. Our government anticipates that we could achieve a level of renewable energy that is more than 500 per cent of current local grid demand by the year 2050. South Australia is also developing a world-class renewable hydrogen industry for domestic use and for export. Our government is working with the private sector to facilitate investments in hydrogen infrastructure, establish hydrogen export hubs and integrate hydrogen into our energy system.

In the last four years, the state has invested in multiple hydrogen projects, including the installation of Australia's largest electrolyser at Hydrogen Park SA. The Hydrogen Park project is allowing 700 homes in Mitchell Park to receive cleaner blended gas comprising 5 per cent renewable hydrogen. South Australia can harness our renewable energy resources to develop new export markets and new manufacturing and industry based on our clean energy advantage, as well as help other countries achieve their emissions reduction targets.

Embracing renewable electricity and hydrogen and reducing emissions is powering clean economic growth in regional areas. For example, in the Upper Spencer Gulf, where the last coal-fired power station closed in 2016, the area is now experiencing growth in commercial-scale renewable energy generation facilities that is transforming its economy. There are 14 renewable energy projects operating in this region and another two under construction. This includes Australia's biggest wind and solar hybrid project, the 317-megawatt Port Augusta Renewable Energy Park.

Seven major renewable hydrogen projects have also recently been short-listed for the state's proposed Port Bonython hydrogen hub, which could result in tens of billions of dollars of investment. Together, these projects could produce over 1½ million tonnes of hydrogen per annum. This would make South Australia one of the most significant producers of hydrogen globally, with a key competitive advantage for our state being the quality of our wind and our solar resources.

Renewable energy provides a sound foundation from which to build to achieve this state's 2030 and 2050 emissions reduction targets. We also need to reduce our emissions across other economic sectors and to embrace other low emissions growth opportunities. This will require action by government, business and the community. Through the South Australian government's Climate Change Action Plan 2021-2025 and related plans and initiatives, we are delivering to further reduce emissions in sectors such as transport, agriculture, mining, building and construction, business and industry, and waste.

Under South Australia's Electric Vehicle Action Plan, the government is investing in projects to accelerate uptake of electric vehicles and to use electric vehicles to help stabilise our power grid. The government is investing to secure private investment in an electric vehicle charging network and has recently announced subsidies for the purchase of new battery electric vehicles and three years' worth of free motor registration to eligible electric vehicle motorists.

Government is also supporting development of commercial production of a seaweed that can reduce livestock methane emissions and is seeking to expand blue carbon and carbon farming projects that increase carbon storage. This includes a new pilot program aimed at growing carbon farming adoption in the primary industry sector. The pilot will establish six commercial carbon pilot projects that demonstrate genuine carbon abatement, as well as measurable economic and environmental benefits.

Heavy industry and mining are being supported to decarbonise. For example, the government has made sure that South Australia has the regulatory framework to support large-scale carbon capture. This enables projects such as Santos's Moomba carbon capture and storage project in South Australia, with startup expected in 2024.

The carbon reduction project has the potential to safely store 1.7 million tonnes of carbon dioxide per year in the outback and, once operational, could reduce South Australia's emissions by around 7 per cent. Government and business are also driving a more circular economy, which will further contribute to reducing greenhouse gas emissions.

South Australia is at the forefront of innovation and waste recycling and resource recovery. Having already reduced its waste to landfill by one-third since 2003 to achieve a diversion rate of more than 80 per cent, the state is now targeting zero avoidable waste to landfill by 2030. With the Australian government, the South Australian government is supporting eight new projects worth $111 million to modernise the recycling industry and improve capacity to process plastic, glass, paper, cardboard and tyres within the state.

The government has released South Australia's first comprehensive strategy for reducing and preventing food waste going to landfill in 2021 and has set a goal to halve the amount of food waste by 2025. The South Australian government will continue to work with other jurisdictions to improve their standards for energy efficiency and greenhouse gas emissions in the National Construction Code and relevant South Australian standards. We have committed to continue to identify and implement improvements in land use planning policies and assessments for low emissions planning and development outcomes.

These are a brief snapshot of the many practical actions underway to reduce emissions and tackle climate change. We will not rest on our laurels. The Marshall Liberal government will continue to work with industries, businesses and communities to identify and deliver new initiatives to meet the state's emissions reduction targets and to harness new low emission economic opportunities. Annual updates in South Australia's emissions will be reported on the Department for Environment and Water website, using data from the publicly available State and Territory Greenhouse Gas Inventories prepared by the Australian government.

Every two years, a report will be prepared on the operation of the Climate Change and Greenhouse Emissions Reduction Act 2007, including progress towards these targets. I commend the bill to the house and seek leave to have the explanation of clauses inserted in Hansard without my reading it.

Leave granted.

EXPLANATION OF CLAUSES

Part 1—Preliminary

1—Short title

2—Commencement

3—Amendment provisions

These clauses are formal.

Part 2—Amendment of Climate Change and Greenhouse Emissions Reduction Act 2007

4—Amendment of section 3—Objects of Act

This clause amends the provisions that set out, as objects of the Act, the specific targets under the Act. It revises the SA target to refer to reducing greenhouse gas emissions to achieve net zero emissions by 31 December 2050. It also inserts a new interim target (the 2030 interim target) to reduce greenhouse gas emissions to at least 50% below 2005 levels by 31 December 2030. It also revises the current renewable electricity target to achieve 100% net renewable electricity generation in the State by 31 December 2030, and makes other consequential changes.

5—Amendment of section 4—Interpretation

The amendments to this section insert definitions of 2030 interim target, net zero greenhouse gas emissions and renewable electricity target.

6—Amendment of section 5—Targets

This clause amends the provisions that set out specific targets under the Act and reflects the targets expressed in the objects of the Act. It revises the SA target to refer to reducing greenhouse gas emissions to achieve net zero emissions by 31 December 2050. It also inserts a new interim target to reduce greenhouse gas emissions to at least 50% below 2005 levels by 31 December 2030. It also revises the renewable electricity target to achieve 100% net renewable electricity generation in the State by 31 December 2030. The clause also makes amendments to refer to a 2005 baseline rather than a 1990 baseline for the purposes of determining the method of calculating greenhouse gas emissions in relation to the new targets, and makes other consequential changes.

7—Amendment of section 6—Functions of Minister

This clause makes a consequential change to include specific reference to the 2030 interim target in relation to the function of the Minister to promote early action to meet the SA target, or any sector-based or other interim target under the Act.

8—Amendment of section 14—Policies

This clause makes a consequential change to include specific reference, in relation to developing policies, to the generation (and not just use) of renewable energy in seeking to apply up-to-date practices and methodologies in calculating renewable energy.

Debate adjourned on motion of Mr Brown.