Low Carbon Economy Experts Panel

The Hon. M.C. PARNELL (14:36): I seek leave to make a brief explanation before asking a question of the Minister for Climate Change about the report of South Australia's Low Carbon Economy Experts Panel.

Leave granted.

The Hon. M.C. PARNELL: Last Wednesday the state government released the report of South Australia's Low Carbon Economy Experts Panel. The experts panel was led by economist and former federal Liberal leader, Dr John Hewson. The panel was asked by the state government to provide independent advice about climate change targets and objectives for the state to the year 2050. The panel found what the Greens had been saying for many years, namely:

…there are many benefits of a low carbon economy for South Australia. As well as contributing to the national and global decarbonisation effort and building resilience to climate change, a low carbon economy will provide significant economic, social and environmental benefits for South Australia. These include more liveable cities, better energy productivity, improved land and biodiversity management and new industries and jobs. Crucially, moving early towards low carbon industries of the future can also give the State a competitive advantage.

The panel noted that South Australia has the capacity to move to 100 per cent renewable energy more quickly than other states. In considering the options for cost-effective ways for South Australia to move to low carbon electricity, the panel excluded nuclear power as a viable option, pointing out that modelling found that nuclear power in South Australia would be uneconomic. My questions of the minister are:

1. Does the minister accept this advice that nuclear power is uneconomic for South Australia?

2. Has the minister forwarded the report to the Royal Commission into the nuclear fuel cycle for their consideration?

The Hon. I.K. HUNTER (Minister for Sustainability, Environment and Conservation, Minister for Water and the River Murray, Minister for Climate Change) (14:38): I thank the honourable member for his very important question and his attempt to associate himself and his party with these progressive and forward-thinking policies that this government has been pursuing for well over a decade now. I welcome that support and I always will.

The South Australian Low Carbon Economy Experts Panel was established to provide the government with advice on the objectives and targets for the South Australian Climate Change Strategy and legislation, having regard to national and international developments; and the key strategies and actions that the South Australian government should pursue in meeting these objectives to maximise economic opportunities and to ensure that the South Australian economy is best placed to adjust to a carbon constrained future.

The panel is comprised of Dr John Hewson, Ms Anna Skarbek, and Dr Frank Jotzo. The panel's report was released on 25 November 2015. In developing its report for the South Australian government, the panel undertook an initial high-level assessment of the achievability of net zero emissions for South Australia by 2050, drawing on a high-level abatement technical analysis commissioned for the panel. As a result of its assessment, the panel found that it is feasible for South Australia to achieve a target of net zero emissions by 2050 and that a commitment to this target will position South Australia well in a low carbon world.

Already the world is moving in this direction, with other nations and subnational governments and cities and many corporates making low carbon commitments and taking strong action. The panel has found there are many benefits of a low carbon economy for this state. As well as contributing to the national and global decarbonisation effort and building resilience to climate change, a low carbon economy will provide significant economic, social and environmental benefits for South Australia, as outlined by the honourable member in the preamble to his question.

These include more liveable cities, better energy productivity, improved land and biodiversity management and new industries and new jobs. Crucially, moving early towards the low carbon industries of the future can also give the state a competitive advantage. One example is the potential for South Australia to be a low carbon electricity powerhouse and a net exporter of renewable energy. The honourable member opposite, David Ridgway, sniggers because, again, they are stuck in the past. They are absolutely stuck in the past.

Abundant renewable electricity combined with its rich resource base and existing manufacturing expertise mean that the state could be a natural base for energy-intensive mining and manufacturing industries in the low carbon world to come. The panel made the three key recommendations for the South Australia government that it should: signal the transition to a zero net emissions economy by 2050; support the community and industry for the transition to a zero net emissions economy; and implement the transition by taking action now to drive the transition to a zero emissions economy.

It also suggested around 25 actions to assist with the implementation of these recommendations, and the South Australian government has already committed to implement a number of these actions, including signing the Under 2 MOU in Paris, and amending its climate change legislation to incorporate the net zero emissions by 2050 target. I look forward to the support of honourable members across the chamber on that initiative once they get the memo from Malcolm Turnbull. Other actions that are included in South Australia's climate change strategy 2015-2050 towards a low carbon economy and others are currently under active consideration.

In making its recommendations, the panel also acknowledged that there are some challenges for the state in moving to a low carbon economy. It cites the examples of the closures of the power plant at Port Augusta and the coal mine at Leigh Creek which provide some challenges into the near term. However, they give the state an opportunity to transition more quickly to a greater share of renewable energy and greater national grid integration. Other challenges, such as the integration of a high level of renewable energy into the electricity grid, can also be transformed into opportunities giving South Australia an early mover advantage.

The Hon. J.S.L. Dawkins: How?

The Hon. I.K. HUNTER: The honourable members ask, 'How?' Again, he is not following the literature, he is not following the discussion. One of the very important aspects about this is innovation in storage technology. We in South Australia have solar PV on our roofs at a ratio of 1:4, the highest penetration in the country. Why would you not think that it is a very attractive proposition for companies in the storage sphere to come to South Australia because of that high penetration of rooftop solar, where they already have a market—the biggest market in the country—for people to move from solar PV alone to solar PV plus battery storage? Why would you not think it is a huge advantage for industry to come to South Australia and take advantage of it?

The Hon. Mr Ridgway nods his head and turns it on one side, going to sleep once again, which is the usual state of torpor of the Liberal Party in this state. When it comes to renewable energy and global warming action, they drop off to sleep. They have no plans, no ideas about the future; they do not even want to participate in the debate. It is absolutely unfortunate that they do not want to be there, but this government will be. This government understands where the future is heading in terms of the international economy.

Members interjecting:

The PRESIDENT: Order!

The Hon. I.K. HUNTER: This government understands that, when you have the United States, the EU and China all collaborating together on putting a price on carbon and an internationally tradeable market for carbon, that will be imposed on all of their trading partners, including us. We understand that to make the best advantage for our society and for our state we need to be at the front leading the charge, and that is exactly what we intend to do.