Climate Change and Greenhouse Emissions Reduction (Miscellaneous) Amendment Bill

Second Reading

The Hon. K.J. MAHER (Minister for Aboriginal Affairs, Attorney-General, Minister for Industrial Relations and Public Sector) (17:00): I move:

That this bill be now read a second time.

I seek leave to insert the second reading explanation and explanation of clause into Hansard without my having to read them.

Leave granted.

The purpose of this Bill is to modernise the Climate Change and Greenhouse Emissions Reductions Act (the Act) to provide a more contemporary legislative framework to deliver South Australia's climate change policy objectives.

The Bill will enshrine in legislation South Australia's short term and long term emissions reduction targets to help limit the extent of climate change. Importantly it also strengthens policy and planning provisions in the Act to allow the targets to be achieved.

The Bill also provides for improved climate risk assessment and climate adaptation measures, including sector planning, to support South Australians to respond and adapt to the impacts of climate change that are already in train.

When the Act came into operation in 2007, it was the first of its kind in Australia. It has guided policy and planning in our state to achieve world leading outcomes in renewable energy generation and climate mitigation.

Over time we have learnt more about the seriousness of climate change and the imperative to drastically reduce emissions and prepare ourselves for climate-related impacts, including more frequent and severe extreme weather events and long term changes in temperatures, rainfall and sea levels.

The 2023 United Nations Emissions Reduction Gap report calls for all nations to accelerate economy-wide, low-carbon development transformations to limit warming to 1.5 degrees Celsius.

If current policies are continued, global warming is estimated to be limited to 3 degrees Celsius. At this level of warming the Intergovernmental Panel on Climate Change predicts dire consequences for health, livelihoods, food security, water supply, human security, and economic growth.

South Australians are already experiencing more frequent and severe weather-related events including floods, heatwaves and bushfires as well as warming temperatures, changing seasons and rising sea levels.

Reducing greenhouse gas emissions, understanding climate related risks and pro-active adaptation planning will be critical to limit the impact of climate change and associated natural disasters on communities, the economy and environment.

In May 2022, the South Australian Parliament declared a climate emergency and committed to restoring a safe climate by transforming the economy to zero net emissions.

This Bill is an important part of the South Australian Government's broader policy agenda to deal with climate change and respond to the declaration of a climate emergency.

The Bill replaces the South Australian target of at least 60% reduction in greenhouse gas emissions (on 1990 levels) by 2050 with our current state target to achieve net zero emissions by 2050. A net zero target was first adopted by the Weatherill government in 2015 and aligns with Australia's national target and commitments under the 2015 Paris Agreement.

A short-term target for at least 60% reduction in net greenhouse gas emissions by 2030 (from 2005 levels) will also be enshrined in the Act.

The Bill legislates a state target of 100% net renewable electricity generation by 2027. Outdated targets for at least 20% renewable electricity generation and use by 2014 are removed from the Act. These targets were achieved by 2011, well ahead of time.

Latest data shows nearly 74 per cent of South Australia's electricity is generated from renewable sources which is among the highest of any major grid in the world. The state's remarkable transition to renewable energy highlights the importance of target setting and effective public policy and planning, for which the Act and this amendment Bill provide a sound legislative framework.

The targets in the Bill are a 'floor not a ceiling' and there is nothing to prevent South Australia from achieving greater reductions sooner.

To keep our State on track to achieving net zero emissions by 2050 and prevent last-minute and costly interventions, the Bill requires interim emissions reduction targets to be set every five years between 2030 and 2050. An indicative ten-year target must also be set to guide longer term planning. Before the end of 2030, the next interim target will be set for 2035 with an indicative target set for 2040.

Each target must build upon the last to constitute a greater reduction in net greenhouse gas emissions than any preceding target. This approach to setting interim targets will constrain the cumulative emissions over the whole of the trajectory to 2050.

In setting interim targets, the Minister responsible for the Act (the Minister) must seek to provide consistency with best national and international practices, seek advice from relevant experts, and undertake consultation.

Targets are only as good as the policies, plans and programs that support them.

The Bill introduces a requirement to prepare a publicly available state-wide emissions reduction plan within 2 years of commencement that sets out the government's objectives, policies, programs and initiatives for reducing, limiting or preventing greenhouse gas emissions.

The Minister must review the state-wide emissions reduction plan in line with the setting of the interim target for 2035 and at least every five years aligned with the setting of subsequent interim targets.

In both preparing and reviewing the state-wide emissions reduction plan, the Minister must undertake consultation as the Minister thinks fit.

The Bill also addresses climate risk and adaptation planning.

A new section 14A requires the Minister to prepare a statewide climate change risk assessment to help governments, business, and communities prioritise planning and actions that support adaptation to the impacts of climate change. The state-wide risk assessment can provide a foundation for more in depth risk assessment and management at a regional, sectoral and organisational level.

The state-wide climate change risk assessment must include an assessment of the economic, social and environmental implications of climate change and associated risks to economic activity, communities, the natural environment and the health and well-being of the people of the State. The risk assessment must seek to take into account the most up to date and best available information on the projected impacts of climate change in the state. The risk assessment will be reviewed every five years.

In both preparing and reviewing the state-wide climate risk assessment, the Minister must undertake consultation as the Minister thinks fit.

The Act already provides the Minister with ability to develop policies that promote or implement measures to facilitate adaptation to climate change. The state-wide climate change risk assessment will inform and help target this policy development.

New section 14B allows the Premier to nominate one or more public sector entities to prepare an agency or sector plan that addresses climate change mitigation, climate change adaptation or both. Where considered beneficial, agencies can work with a relevant sector of the state's economy or another related group or area of activity to develop plans for reducing emissions and/or adapting to climate change.

The Bill does not generally mandate agency or sector planning. The intention is for agency or sector planning to be undertaken where there is an identified need and public value in doing so.

The provisions do not exclude government agencies preparing agency or sector plans without nomination.

The section for preparation of agency or sector plans complements existing provisions for sector agreements under section 16 of the Act. The Minister may enter into sector agreements with other parties to facilitate strategies to meet targets. Under the Bill a clarifying amendment makes it clearer that sector agreements can include climate change adaptation measures.

Importantly, the Bill will guide the South Australian Government to lead by example in addressing climate related risk and reducing emissions in its own operations and activities.

The Bill provides the Minister with the power to make a policy that outlines how government agencies should consider and manage climate related risks in relation to their operations and activities. This amendment complements an existing provision in the Act to develop policies that demonstrate the government's leadership in dealing with climate change through the management and reduction of its own greenhouse gas emissions.

The Bill requires agencies to include in their annual reports, a report on the manner in which they are addressing climate change impacts and reducing greenhouse gas emissions. This reporting will help support the transparency and accountability needed to drive change.

This requirement is complemented by a provision allowing the Minister to create guidelines that could contain detail to guide agencies in their reporting. The benefit of including this detail in guidelines is that it can be easily varied to keep up with rapidly evolving climate change reporting standards.

This reporting will complement existing reporting requirements in the Act under sections 7 and 21 which review progress against the targets and Objects of the Act.

Other amendments are included in the Bill to clarify the status and effect of policies and plans under the Act, and other consequential amendments have been made as a result of the primary amendments. The objects of the Act remain essentially unchanged apart from minor consequential amendments.

A few key terms are defined in the Bill, including 'climate change adaptation' and 'climate change mitigation' which are designed to improve consistency across South Australian legislation, aligning with the terms in the Environment Protection Act 1993. Similarly, the definition of 'public sector agency' is aligned with the term in the Public Sector Act 2009.

The Bill defines 'net greenhouse gas emissions'. This is a term used throughout the Act, including in relation to the emissions reduction targets. The intention is that when setting a target or measuring emissions reductions against a target, the term 'net greenhouse gas emissions', which includes references to offsets, will be subject to the procedural requirements in section 5 of the Act, as amended by clause 4 of the Bill. These procedural requirements say that the Minister must seek to take into account relevant methodologies and principles that apply within other Australian jurisdictions and seek to provide consistency with best national and international practices insofar as may be reasonably practicable and relevant to the state.

The Bill has been informed by extensive community and industry engagement over the last 18 months.

An inaugural Industry Climate Change Conference held in April 2023 brought together 857 industry, business and government representatives from across South Australia to discuss pathways towards a net zero future.

Community climate conversations were held between May and December 2023. More than 750 people from across the state were involved in discussions about how South Australia transitions to a clean, green and net zero greenhouse emissions future.

These engagements highlighted that industry and community want policy and regulation to be strengthened to drive the scale of climate change action, including legislated emission reduction targets and short term targets before 2050. The feedback highlighted the importance of government leadership, policy and information to lead others to a net zero emissions future. These matters are addressed in the Bill.

Public consultation was undertaken through yourSAy from February to April 2024 on a draft amendment Bill supported by two information sessions. This consultation indicated broad support for the amendments, the need to be ambitious in this space, bring community and business along and have government lead by example.

Four First Nations engagement workshops were also undertaken during this time on climate change projects that are currently planned or underway, including amendments to the Act. The feedback received from First Nations people highlighted the need to continue to listen to Truth Telling, and the Bill accordingly includes a new function for the Minister responsible for the Act to promote consultation with First Nations people in relation to climate change. A change has also been made to the objects of the Act to reflect this. This Bill modernises the Act and strengthens climate change action to transition to a net zero future and enable our state to adapt to the changing climate.

I commend the Bill to the Council.

Explanation of Clauses

Part 1—Preliminary

1—Short title

This clause is formal.

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

2—Amendment of section 3—Objects of Act

This clause amends section 3 of the Act to update the reference in the objects to the setting of targets to reflect the new targets proposed under this measure. It also makes consequential amendments to include references to plans and not just policies and programs. It also updates some of the stated objects, including to extend their application to preventing greenhouse gas emissions (and not just reducing or limiting such emissions). In seeking to further the objects of the Act, it also includes, as a guiding principle in relation to the achievement of ecologically sustainable development, that recognition be given to the importance of the agricultural industry to the State and that there is a fluctuation of greenhouse gas emissions in relation to this industry.

3—Amendment of section 4—Interpretation

This clause inserts various definitions which are consequential on other proposed amendments, including definitions of climate change adaptation, climate change mitigation, and net greenhouse gas emissions.

4—Amendment of section 5—Targets

This clause amends section 5 to insert new and updated targets for the purposes of the Act. The principal target, or SA target, is to achieve zero net greenhouse gas emissions by the end of 2050.

The amendments also set out a target to be reached by the end of 2030 (the 2030 target) to reduce net greenhouse gas emissions in the State to a level of at least 60% below 2005 levels. In addition, the proposed amendments provide for the setting of 5 yearly interim targets by the Minister for the reduction of greenhouse gas emissions to be achieved by the end of 2035, 2040 and 2045. In setting the interim targets, the Minister must also include an indicative interim target for the subsequent 5 year period and must also undertake such consultation as the Minister determines to be reasonable and appropriate and have regard to any relevant advice of the Premier's Climate Change Council.

The amendments also include a further target (the renewable electricity target), to achieve 100% net renewable electricity generation in South Australia by the end of December 2027.

Subsection (3) is amended to clarify that the Minister may determine the method for calculating the removal of greenhouse gas emissions from the atmosphere and greenhouse gas emissions offsets (taking into account the requirements of subsection (4)).

Subsection (4) is also amended by this clause to update the matters to which the Minister must have regard in setting targets and interim targets and making other determinations under this section. The references to a baseline year are also amended to refer to 2005, rather than 1990. The amendments make other consequential amendments and also provide for the publication of any determination or target that applies under the section on the Department's website.

5—Amendment of section 6—Functions of Minister

This clause makes consequential amendments to the various functions of the Minister set out in this section to refer to plans in addition to policies and programs. In relation to the function of promoting the commercialisation and use of technologies for reducing or limiting greenhouse gas emissions, the amendments extend this to technologies that prevent greenhouse gas emissions. The clause also inserts as a function of the Minister, promoting consultation with First Nations people about issues associated with climate change.

6—Amendment of section 7—Two-yearly reports

Section 7 provides for reporting by the Minister every 2 years on the operation of the Act and sets out the matters that must be included in the report. This clause makes consequential amendments to those matters by referring to the new targets set by or under the proposed amendments to section 5. The amendment to delete subsection (2)(d) is consequential on the amendment to subsection (2)(c) to refer to the targets set by or under section 5. The amendments also update the language in subsection (2)(f) in relation to the requirement to include in the report, a summary of the use of renewable energy, so that it refers to the use of renewable energy sources.

7—Amendment of section 11—Functions of Council

The proposed amendments to section 11 update the language to include a reference in subsection (1) to the generation, and not just the use, of renewable energy. It also updates the language in subsection (3)(a) to refer to the concepts of climate change adaptation and climate change mitigation.

8—Amendment of heading to Part 4

This amendment amends the heading to Part 4 to include a reference to plans (as well as policies). This is consequential on the proposed amendments to section 14 to include a statewide emissions reduction plan and the proposed insertion of section 14B.

9—Amendment of section 14—Policies

Section 14 provides for policies to be developed by the Minister for various purposes in relation to the Act. This clause amends section 14 to update the terminology in relation to climate change mitigation and adaptation and to include reference to the fact that the policies may assist in outlining how public sector entities should (as or to the extent specified in the policy) consider and manage climate related risks in relation to their operations and activities.

The amendments also provide for the development of a statewide emissions reduction plan by the Minister within 2 years of the commencement of the measure. The statewide emissions reduction plan must set out the Government's objectives for the reduction of greenhouse gas emissions for the State and the Government's policies, programs and other initiatives for reducing, limiting or preventing greenhouse gas emissions. The statewide emissions reduction plan must be reviewed every 5 years, to coincide, insofar as is reasonably practicable, with the setting of the interim targets under proposed section 5(2a). In preparing and reviewing the statewide emissions reduction plan, the Minister must undertake such consultation as the Minister considers appropriate. The clause also makes other amendments that are consequential on the inclusion of the plan in order to extend any references to policies to include reference to plans.

10—Insertion of sections 14A and 14B

This clause proposes to insert 2 new sections in the Act as follows:

14A—Climate change risk assessment for the State

This clause provides for the requirement of the Minister to prepare a climate change risk assessment for South Australia (the statewide climate change risk assessment) to support planning by the Government, local government and various sectors of the economy and the community, and the community more generally, to manage climate related risk. The risk assessment is required to be prepared within 2 years of the commencement of this provision, and must include an assessment of the economic, social and environmental implications of climate change and the associated risks to economic activity, communities, natural environments and ecosystems, and the health and well-being of the people of South Australia. The risk assessment must be reviewed at least once every 5 years. In preparing the risk assessment, and conducting the review, the Minister must seek to take into account the most up-to-date and best available information on the projected impacts of climate change in the State, and undertake such consultation as the Minster considers appropriate. An up-to-date copy of the risk assessment is also required to be made reasonably available to the public.

14B—Plans prepared by public sector agencies

This clause provides for the preparation of plans by public sector agencies nominated by the Premier to address matters regarding climate change mitigation or climate change adaptation (or both) relating to the agency, or a particular sector. If the Premier considers it appropriate, 1 or more public sector agencies may be nominated to prepare a joint plan. The nomination by the Premier may specify the scope and application of the plan, including by identifying the sector or sectors to which the plan will apply. A plan must be prepared in accordance with the nomination and any guidelines developed by the Minister. The plan should, so far as is reasonably practicable, provide for policies, programs and other initiatives relevant to the functions, activities or areas of responsibility, operations or interests of the agency or the sector. The plan must be developed having regard to the climate related risks that are relevant to the agency or sector (including any risks identified in the statewide climate change risk assessment), the targets set under the Act and any other relevant plans or sector agreements or policies under the Act. In preparing or varying a plan, the nominated agency must undertake appropriate consultation after taking into account any guidelines of the Minister, and must ensure that an up-to-date copy of the plan is made reasonably available to the public. The public sector agency must prepare a report each year on the implementation of the plan in accordance with any guidelines developed by the Minister.

The clause also provides that a public sector agency that is not the subject of a nomination, may, after consultation with the Minister, voluntarily prepare a plan (which may be jointly with 1 or more other public sector entities) to address matters relating to climate change mitigation or climate change adaptation relating to the agency or sector. The plans may provide for policies, programs and other initiatives that are relevant to the functions, activities or areas of responsibility, or the operations or interests of the agency or sector. In preparing or varying a plan, the agency must undertake such consultation as the agency considers appropriate after taking into account any relevant guidelines developed by the Minister.

11—Amendment of section 16—Sector agreements

This amendment amends section 16 of the Act so that the current provisions regarding voluntary sector agreements (which relate to recognising, promoting or facilitating strategies to meet any targets set under the Act) extend to climate change mitigation and climate change adaptation. Subsection (2) sets out the various things a sector agreement may provide for and this clause amends paragraph (a) to include references to climate change adaptation and climate change mitigation as matters to which the objectives of the agreements may relate.

The amendments also remove subsections (4) and (5) which refer to matters that were to be progressed by July 2008 and are no longer required.

12—Insertion of section 18A

This amendment inserts proposed section 18A as follows:

18A—Status and effect of policies and plans

This clause provides that policies and plans under the Act are an expression of policy and do not affect rights and liabilities. It clarifies that the no action can brought on the basis that an entity has acted in a way that is inconsistent with a policy or plan under the Act, or on the basis that another instrument is inconsistent with a such a plan or policy.

13—Amendment of heading to section 20

This clause amends the heading to section 20 and is consequential on the insertion of proposed section 20A.

14—Insertion of section 20A

This clause inserts proposed section 20A as follows:

20A—Reports of public sector agencies

This clause provides that the annual report of a public sector agency must include a report on the manner in which the agency is addressing matters relating climate related risks and the reduction of greenhouse gas emissions to the extent these are relevant to the operations or activities of the agency. In preparing the report, the agency must have regard to any guidelines developed by the Minister. This clause will have effect in relation to the first full financial year following the commencement of the measure onwards.

15—Amendment of section 22—Regulations

This amendment is consequential on the insertion of the definition of public sector entities.

Debate adjourned on motion of Hon. L.A. Henderson.