House of Assembly Fifty-Fifth Parliament Parliament, First Session (55-1) 55 1 Parliament of South Australia House of Assembly published Bills Climate Change and Greenhouse Emissions Reduction (Targets) Amendment Bill Climate Change and Greenhouse Emissions Reduction (Targets) Amendment Bill Climate Change and Greenhouse Emissions Reduction (Targets) Amendment Bill Second Reading Second Reading The Hon. D.J. SPEIRS House of Assembly Black Leader of the Opposition The Hon. D.J. SPEIRS (Black—Leader of the Opposition) (10:48): 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 2022 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 the previous Liberal government's policy targets and those currently built into the state's climate change action plan, which is scheduled to run from 2021 to 2025, focusing on greenhouse gas emissions reduction and renewable energy generation, and placing this in legislation. These policy targets are net zero emissions by 2050, to reduce net emissions by more than 50 per cent by 2030 from 2005 levels, and to achieve 100 per cent renewable energy generation by 2030. The emissions reduction targets are aligned with the Paris Agreement and the climate change goal to limit global warming to well below 2° Celsius, preferably to 1.5° Celsius, compared to pre-industrial levels. Legislating these targets will send a strong signal to South Australians, and more broadly to people and businesses across the nation and across the globe, that South Australia is serious about reducing emissions and addressing the impacts of climate change. Declarations of emergencies and catastrophising climate change for political points will do little to address the issue or to progress South Australia. Real targets and action-based plans and responses provide the most credible pathway forward and, of course, create a legitimate foundation to drive serious economic outcomes at the same time. The previous Liberal government put in place a clear path for responding to climate change by building a strong, climate smart future. Its climate change leadership was characterised by an acknowledgement of the risks and challenges that climate change poses; a commitment to reduce our emissions to nation-leading, ambitious target levels; and a desire to adapt and pursue climate change related opportunities, including by engaging and driving opportunities through business and through the market. The draft bill amends the targets set out in section 3 and section 5 of the Climate Change and Greenhouse Emissions Reduction Act 2007. The principal greenhouse emissions reduction target, the South Australian target, is: …to reduce by 31 December 2050 greenhouse gas emissions within the State by at least 60% to the amount that is equal or less than 40% of 1990 levels… This will be replaced with the target relating to net zero emissions by the year 2050. A new interim target that relates to the previous Liberal government's policy target to reduce net greenhouse gas emissions by more than 50 per cent from 2005 levels by 2030 will also importantly be included as a more short-term goad to action. 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 the new target reflecting our renewable energy ambitions to achieve 100 per cent renewable electricity generation by the year 2030. The bill makes minor flow-on amendments as a consequence of these changes to the targets. While in government, we were able to ascertain confidence that, with bipartisan support and a focus on practical action, our state will achieve our targets and maximise the economic benefits from a shift to a low emissions future. The eminent climate economist Professor Ross Garnaut in his 2020 report for the government of South Australia, known as 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 both in the land and in the sea. Professor Garnaut also stated in his report that regional South Australia in particular can prosper exceptionally by embracing 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 2001. 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 to date. Under the previous Liberal government, we worked hard to rapidly increase renewable energy in this state. We put in place pathways to solve 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 generation to over 60 per cent, and we are well on our way to achieving 100 per cent net renewable electricity generation by the year 2030. The South Australian Climate Change Action Plan 2021-2025 anticipates that our state could achieve a level of renewable energy that is more than 500 per cent of current local grid demand by the year 2050. Under the previous Liberal government, the state 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. We took to the 2022 election a plan for including a hydrogen hub at Port Bonython in the Upper Spencer Gulf, creating close to 6,000 jobs, tens of billions of dollars of investment and the production of over 1½ million tonnes of hydrogen per annum. That government's Electric Vehicle Action Plan was a commitment to projects to accelerate the uptake of electric vehicles and to use electric vehicles to help stabilise our power grid. Projects to secure private investment in an electric vehicle charging network, subsidies for the purchase of new battery electric vehicles and free motor registration for eligible electric vehicle motorists were commitments towards incentivising the use of electric vehicles in South Australia. Our state must continue to harness its renewable energy resources to develop new export markets and new manufacturing and industry based on our clean energy advantage. This will also help other countries achieve their emissions reduction targets. The economic opportunities before South Australia are significant. 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 embrace other low emissions growth opportunities. This will require action by government, business and the community. Through the state's Climate Change Action Plan 2021-2025 and related plans and initiatives that the previous Liberal government established, we can further reduce emissions in sectors such as transport, agriculture, mining, building and construction, business and industry and waste management and resource recovery. There are promising signs in our state's development of commercial production of a seaweed that can reduce livestock methane emissions. There are also promising signs that we can expand blue carbon and carbon farming projects that increase carbon storage, particularly in the primary industry sector. These projects have both economic and environmental benefits. Heavy industry and mining being supported to decarbonise is also important. For example, the previous Liberal government made sure that South Australia has the regulatory framework in place 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. South Australia is at the forefront of innovation and waste recycling and resource recovery, leading to the circular economy. 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 and the previous Liberal government supporting eight new projects worth $111 million to modernise the recycling industry and improve capacity to process plastic, glass, paper, cardboard and tyres within our state. The previous Liberal government released South Australia's first comprehensive strategy for reducing and preventing food waste going to landfill in 2021 and set a goal to halve the amount of food waste by 2025. It was working 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 committed to continue to identify and implement improvements in land use planning policies and assessments for low emissions planning and development outcomes. This is a brief snapshot of the many practical actions and projects we commenced in our time in government to reduce emissions and tackle climate change. We knew that we could not rest on our laurels. This is why it is important to commit to enshrining our ambitious targets in legislation. I am once again introducing a bill to send a strong signal to South Australians and the business sector that South Australia is serious about reducing emissions and addressing climate change and capturing the significant economic-related opportunities before our state. 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 EXPLANATION OF CLAUSES Part 1—Preliminary 1—Short title 2—Commencement These clauses are formal. Part 2—Amendment of Climate Change and Greenhouse Emissions Reduction Act 2007 3—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. 4—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. 5—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. 6—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. 7—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. Mr ODENWALDER House of Assembly Mr ODENWALDER: I move: That the debate be adjourned. The house divided on the motion: Ayes	24 Noes	14 Majority	10 AYES Andrews, S.E. Bettison, Z.L. Boyer, B.I. Brock, G.G. Brown, M.E. Champion, N.D. Clancy, N.P. Close, S.E. Cook, N.F. Fulbrook, J. Hildyard, K.A. Hood, L. Hughes, E.J. Hutchesson, C.L. Koutsantonis, A. Michaels, A. Odenwalder, L.K. (teller) Pearce, R.K. Piccolo, A. Picton, C.J. Stinson, J.M. Szakacs, J.K. Thompson, E.L. Wortley, D. NOES Basham, D.K.B. Bell, T.S. Cowdrey, M.J. Ellis, F.J. Hurn, A. McBride, P.N. Patterson, S.J.R. Pederick, A.S. Pisoni, D.G. Pratt, P. Speirs, D.J. (teller) Teague, J.B. Telfer, S.J. Whetstone, T.J. PAIRS Malinauskas, P.B. Marshall, S.S. Mullighan, S.C. Gardner, J.A.W. Savvas, O.M. Tarzia, V.A. Motion thus carried; debate adjourned.