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Legislative Council - Fifty-Second Parliament, First Session (52-1)
2011-11-22 Daily Xml
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CLEAN ENERGY FUTURE

The Hon. G.A. KANDELAARS (14:54): I seek leave to make a brief explanation before asking the Minister for State/Local Government Relations a question about the commonwealth government's Clean Energy Future package.

Leave granted.

The Hon. G.A. KANDELAARS: I understand the commonwealth government's Clean Energy package has a direct impact on local government. However, I also understand that the commonwealth government is providing assistance to the local government sector. My question is: can the minister outline why the state government supports the commonwealth in assisting councils to find better ways to manage their energy use?

The Hon. R.P. WORTLEY (Minister for Industrial Relations, Minister for State/Local Government Relations) (14:55): As part of its Clean Energy package, the commonwealth government is committed to providing support to local governments to facilitate a smooth transition to a clean energy future. Over the past few months, the Hon. Mr Mark Dreyfus QC, Parliamentary Secretary for Climate Change and Energy Efficiency, has been travelling to a number of states, meeting with council leaders and hosting various local council forums on the opportunities presented by the government's Clean Energy Future package. The commonwealth government has had great feedback from these sessions.

Last week, I had the opportunity to hear from the Hon. Mark Dreyfus QC at the local government ministers' forum in Canberra about the opportunities in terms of abatement and assistance that is available to local government under the Clean Energy Future package. Local governments and other landfill operators may be liable to pay the carbon price for methane emissions from landfill. Landfill facilities with direct emissions of 25,000 tonnes of CO2-e a year or more will be liable under the carbon price. Nevertheless, there is an opportunity for councils to reduce or, in some cases, remove their liabilities by taking action through reduced emissions. Activities that reduce emissions include capturing landfill gas to generate electricity, flaring methane, waste aversion, recycling and composting.

Many of these activities can generate revenue, and councils may be eligible for commonwealth government incentives through schemes such as the Renewable Energy Target and Carbon Farming Initiative. The Carbon Farming Initiative is the commonwealth's legislated offset scheme, providing an opportunity for landfill facilities to generate credits by reducing emissions from waste deposited before 1 July 2012.

CFI credits can be used to meet obligations under the carbon price. They could be sold to firms with a carbon price liability or used by a council landfill operator to offset its own carbon price obligations. There will be no carbon price liability for landfill facilities with emissions of less than 25,000 tonnes of CO2-e carbon pollution a year for at least the first three years of the carbon price. Additionally, councils and existing ratepayers will not be asked to pay for emissions from waste deposited over previous decades, known as legacy waste. For this reason, coverage of landfill emissions will be limited to emissions from new waste.

While the debate on how to price carbon has been going on strongly for more than a decade, for many councils this will be the first time they will be reporting on their emissions. That is why, as the Minister for State/Local Government Relations, I welcomed the opportunity to be briefed by the commonwealth government on this matter and, in turn, will be able to engage with councils and ensure that councils are aware of the opportunities and assistance that is available.

The introduction of a carbon price creates a number of opportunities for local governments to reduce their emissions and benefit from the transition to a clean energy future. As we move towards the start date of the Carbon Farming Initiative next month and the carbon price in July next year, it is important that councils take the necessary steps to adapt to this economic reform so they can make the most of the opportunities that it presents.

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