Bills

Climate Change and Greenhouse Emissions Reduction (Targets) Amendment Bill

Second Reading

Adjourned debate on second reading.

(Continued from 6 July 2022.)

Mr PATTERSON (Morphett) (10:32): I take the opportunity here to speak in parliament today about the Climate Change and Greenhouse Emissions Reduction (Targets) Amendment Bill 2022, which has been introduced by the Leader of the Opposition and aims to update the emissions reduction and renewable electricity targets in the Climate Change and Greenhouse Emissions Reduction Act 2007. This is aimed to be commensurate with global efforts to help reduce greenhouse gas emissions and to limit the worst effects of climate change.

Of course, South Australia is the driest state in the world's driest inhabited continent, so at our heart climate and rainfall have been an ever-present challenge to South Australia in terms of its growth, both economically and socially. South Australia certainly has a vital interest in the success of global efforts to avoid the worst effects of climate change. Consequently, addressing it was a priority of the previous Liberal government and remains a priority to those on this side of the house because we do acknowledge the risks and also the challenges and opportunities that climate change poses.

At the same time, it is very apparent that South Australia is not the only jurisdiction that is facing these challenges, but South Australia is well equipped to respond to both the challenges and opportunities of climate change, more so than many other Australian states or nearly all other places in the world.

As previously mentioned by the leader, these amendments will serve to legislate provisions in line with the former Liberal government's greenhouse gas emissions reductions and renewable energy generation targets, as well as those encapsulated within the state's Climate Change Action Plan 2021-2025. In summary, these policy targets are as follows:

net zero emissions by 2050;

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

achieving 100 per cent net renewable energy generation by 2030.

Enshrining these greenhouse gas emission reduction and renewable energy generation targets within the legislation will serve to demonstrate that, as a state, South Australia is committed to its goal of reducing greenhouse gas emissions, and will also send a strong message both to South Australian people and to the business community. At the same time, we do not see from those opposite their plan. Is it to do the same? They have resorted to what I would say are empty gestures and virtue signalling, such as declaring a climate emergency, whilst at the same time making massive cuts to the Department for Environment and Water. That just puts it in perspective.

From a global perspective, if we look at the most recent IPCC assessment reports, one of those is the Mitigation of Climate Change report. That demonstrates what is going on from a global perspective, what the growth of greenhouse gases is. If we look at 1990 levels, there were 38,000 megatons of CO₂ equivalents. By 2005, this had grown to 47,000 megatons and increased further by 2019 to 59,000 megatons. Breaking this down into regions, it shows that eastern Asia made up 27 per cent of those emissions; North America, 12 per cent; and Europe, 8 per cent. In comparison, Australia's emissions in 2005 were 625 megatons and by 2019 had decreased to 530 megatons.

South Australia's contribution to the 2005 levels was 36 megatons and decreased to 24 megatons in 2019. Comparing that with the 59,000 megatons of global emissions, it does put in perspective the role that we play and also the effect of South Australia's emissions. However, what is also important is mitigation action. We can do our bit as well, but we need to acknowledge that it is going to require a global effort to reduce emissions, as I said, by comparing our emissions of 24 megatons with the worldwide emissions of 59,000 megatons.

It is a complex problem and it is a global problem. We have many developing nations having to lift large populations—in the hundreds of millions or the billions for some countries—out of poverty, and at this stage their energy sources are primarily tied to coal. This has been one of the key reasons for the resulting increase in global emissions. While it is important that we do our bit in South Australia to mitigate emissions, it really is imperative that South Australia puts in place adaption measures to plan for changes that will occur because of climate change—factors well outside what South Australia does and more in line with what the world is doing.

Recognising that we needed to have practical action, the former Liberal government's approach to adaption was very practical. We worked to drive action on the ground and in communities as well because it is important that they can see and experience what is going on and therefore become a part of it. Some of the practical action taken on greenhouse gas emissions reduction by the former Liberal government, and also the promotion of renewable energy generation, was characterised by an acknowledgement of the risks and challenges that climate change poses, a commitment to reduce our emissions, as I said before, and, importantly, a desire to adapt and pursue climate change-related opportunities, which included engaging with business and the market.

This amendment bill seeks to amend the current targets in the Climate Change and Greenhouse Emissions Reduction Act 2007 by replacing them with a target of net zero emissions by 2050. Additionally, a new interim target that relates to the previous Liberal government's policy target, which was to reduce net greenhouse gas emissions by more than 50 per cent from 2005 levels by 2030, is also included. At present, the two existing legislative renewable energy targets are to increase renewable electricity use and generation by at least 20 per cent by 2014, and these were achieved by 2011. These are looking to be replaced by a new target reflecting our renewable energy ambition, which is to achieve 100 per cent net renewable electricity generation by 2030.

In December 2020, the former Liberal government released its Climate Change Action Plan. It was developed with input from renowned climate change expert Professor Ross Garnaut. South Australia has already reduced its net greenhouse gas emissions by 33 per cent from 2005 levels, based on that 2019 data, and at the same time, whilst those emissions have gone down, gross state product has grown by 26 per cent. It is important to understand, as I said, that we can still continue to grow our economy and grow society at the same time.

The figures also show that South Australia is on track to reach net 100 per cent of our electricity demand from renewable energy by 2030. In so doing, this meant that the former Liberal government then set a goal of reducing emissions by 50 per cent by 2030. Professor Garnaut has previously stated that a 50 per cent reduction in emissions by 2030 is within reach, but it will require major contributions from economic sectors, such as low-emissions manufacturing and mining, renewable electricity and hydrogen, and transport, and also options for carbon abatement, such as storing it inland or in the sea, in what is known as blue carbon farming.

By continuing this momentum, the state really is on track to achieve a level of renewable energy by 2050 that is five times more than the current demand. This is based on a number of projects that have been initiated. Under the former Liberal government, a number of projects related to reducing greenhouse gas emissions and promoting renewable solutions also occurred. One such project is in the area of hydrogen. There are massive opportunities from being able to use the abundant solar and wind resources this state has to convert water via electrolysis into hydrogen.

We have invested in a number of hydrogen-related projects. One of those, of course, is the Port Bonython hydrogen hub, which is in conjunction with the federal government. It will be a truly global project. It has international companies from Japan and Canada involved as well, coming together to be global market players in this industry and to accelerate further the already good work being done here. In summary, in the time that is remaining, this bill is about updating targets to be more in line with where we want to take the state and where it is going at present.

Mr BATTY (Bragg) (10:42): I also rise to speak on the Climate Change and Greenhouse Emissions Reduction (Targets) Amendment Bill. I commend the Leader of the Opposition for bringing this bill before the house because I think it once again demonstrates that it is those of us on this side of the house who are serious about taking real action on this issue and are serious about maximising the economic benefits that the energy transition will present for South Australia.

This bill brings the emissions reduction targets, as well as the renewable energy targets in the 2007 act, in line and up to date with global efforts to reduce greenhouse gas emissions and to limit the worst effects of climate change. The changes that are proposed by this bill enshrine into legislation targets that the previous Liberal government put in place and reflect the state's climate action plan.

There are three broad targets that are going to be updated by this bill: firstly, a target to reach net zero by 2050; secondly, an interim target to reduce net emissions by more than 50 per cent by 2030; and, thirdly, to achieve 100 per cent net renewables by 2030, a target that I am very pleased to say we are well on track to meet.

What this bill does is legislate our ambitious targets that are consistent with the Paris Agreement, consistent with the climate change goal to limit warming by below 2º, and preferably 1.5°, and consistent with targets set by the Australian government and their commitment to net zero by 2050. I was very pleased and very proud to have been part of that Australian delegation that committed to net zero at the COP26 climate conference in Glasgow just last year.

Targets are all well and good, but they are totally meaningless if they are not backed up by a plan to meet them, if they are not accompanied by real action. That is exactly what the previous Liberal government put in place. In December 2019, the previous government released its Climate Smart South Australia policy framework, and that set out its ambition to reach a goal of net zero emissions by 2050.

About a year later, in December 2020, the previous Liberal government released what was the most powerful vision for climate action in this state that any South Australian government has ever put forward. As the member for Morphett has pointed out, it was developed in conjunction with and with the advice of climate change expert Professor Ross Garnaut. That action plan had real action. It had 68 actions across seven focus areas, including energy transformation; the economy; agriculture, landscapes and habitats; low-emissions transport; built and urban environments; resilient communities; and government leading by example.

I mentioned that it was developed in conjunction with Ross Garnaut. The professor released his own report in September 2020, which began with a dire warning for South Australians. It pointed out the challenges that we face on this issue. He said: 'South Australia stands out in a vulnerable world for its vulnerability to climate change.' Importantly, and encouragingly, Professor Garnaut also noted the immense opportunity that the energy transition can bring to South Australia.

It is very important that we realise that economic growth is not inconsistent, is not at odds with emissions reduction. Indeed, Australia has already reduced its emissions by more than 20 per cent since 2005, and in that same time period our economy has grown by 45 per cent. In South Australia, similarly, we have reduced our emissions by 33 per cent on 2005 levels, and what have we seen over that same time period? Our gross state product grew by 26 per cent.

I noted in my own maiden speech just a few weeks ago that this is an issue that concerns economics and concerns energy security just as much as it is an environmental issue. Just as the world has always looked to Australia to power it with coal and with gas, it is going to start to look to Australia—it is starting to look to Australia—to power it again, but with clean energy. I say: why should South Australia not be at the forefront of what will be an emerging and growing industry for our future? The good news is that Professor Ross Garnaut in his report said that this state is perfectly placed to do just that. He said, notwithstanding the challenges that he also outlined:

…South Australia is better equipped to respond to the challenges and opportunities of climate change than any other Australian state and nearly all of the world's sub-national jurisdictions.

That is very encouraging, but we need to embrace these opportunities, and that is exactly what the previous Liberal government set about doing. We increased renewables. In just 15 years, South Australia's energy system has grown from being 1 per cent renewables to over 60 per cent, so we are well on our way to achieving the target that this bill is setting out to legislate; in fact, we are ranked second only to Denmark for annual variable renewable energy that we generate.

We invested in hydrogen projects. We had an electric vehicle action plan that accelerated the uptake of electric vehicles. We set about creating a regulatory framework to support large-scale carbon capture. We did other things, like reducing food waste—we had a comprehensive strategy to halve the amount of food waste by 2025—as well as implementing innovations in other waste management areas and in the circular economy, for which we now have a shadow minister.

All this work that was undertaken by the previous Liberal government can be harnessed to develop new export industries and to develop new advanced manufacturing industries based on what we have here in South Australia, which is a clean energy advantage. It has been acknowledged by Professor Ross Garnaut, it was acknowledged by the previous Liberal government and it should be acknowledged by this house through this bill.

That is what this is all about for me: it is about embracing the benefits that South Australia can reap from the energy transition. I will tell you what it is not about. It is not about protests, it is not about ideology or the ideologues and it is certainly not about declaring a climate emergency. Declarations of emergencies, like what we have seen from those opposite, when they are backed up by no emergency action, are simply virtue signalling at its very worst. In fact, not only did we see a declaration of emergency from those opposite without any action to address that emergency but we saw the exact opposite: we saw cuts to the environment budget.

We cannot resort to virtue signalling; we need to resort to action. That is what we have seen from the previous Liberal government. We need to implement an action-based plan that will drive not only serious environmental outcomes but also, importantly, serious economic outcomes. Legislating these targets, which is what this bill seeks to do, will send a strong signal to South Australians, and indeed, to people across the country and across the world, that this state is serious about this issue. It is serious about achieving environmental outcomes and, importantly, it is serious about unlocking the economic potential that the energy transition is going to present to South Australia. That is why I will be very pleased to support this bill.

Debate adjourned on motion of Mr Odenwalder.