Last week the Federal Opposition released its long-awaited climate policy, promising to create jobs, cut power bills and reduce emissions by boosting renewable energy.
Under the title Powering Australia, Labor’s plan centres around bringing cheaper renewable energy to Australian homes and businesses, while reducing Australia’s emissions by 43 per cent by 2030.
Should the Opposition take government at the next election, a 43 per cent reduction will become Australia’s target under the Paris Agreement, keeping the country on track for net zero by 2050.
“For nearly a decade, the Liberal Government’s mismanagement of our energy policy has been a threat to our economy – leaving Australia missing out on the jobs, growth, and opportunities that our abundant renewable resources could unlock,” Opposition Leader Anthony Albanese said.
The plan claims to create 604,000 jobs, with 5 out of 6 new jobs to be created in the regions, spurring $76 billion of investment.
“Powering Australia will prioritise growth and investment for the regions that have served as Australia’s engine room for so long – that know energy, manufacturing and resources,” Mr Albanese said.
It also says the plan is backed up by the most extensive independent modelling ever carried out for an Opposition, with its Powering Australia plan promising to:
- Upgrade the electricity grid to fix energy transmission and drive down power prices.
- Make electric vehicles cheaper with an electric car discount and Australia’s first National Electric Vehicle Strategy.
- Adopt the Business Council of Australia’s recommendation for facilities already covered by the Government’s Safeguard Mechanism that emissions be reduced gradually and predictably over time, to support international competitiveness and economic growth – consistent with industry’s own commitment to net zero by 2050.
- Protect the competitiveness of Emissions Intensive Trade Exposed industries by ensuring they will not face a greater constraint than their competitors.
- Allocate up to $3 billion from Labor’s National Reconstruction Fund to invest in green metals (steel, alumina and aluminium); clean energy component manufacturing; hydrogen electrolysers and fuel switching; agricultural methane reduction and waste reduction.
- Provide direct financial support for measures that improve energy efficiency within existing industries and develop new industries in Regional Australia through a new Powering the Regions Fund.
- Roll out 85 solar banks around Australia to ensure more households can benefit from rooftop solar.
- Install 400 community batteries across the country.
- Demonstrate Commonwealth leadership by reducing the Australian Public Service’s own emissions to net zero by 2030.
- Invest in 10,000 New Energy Apprentices and a New Energy Skills Program.
- Establish a real-world vehicle fuel testing program to inform consumer choice.
- Work with large businesses to provide greater transparency on their climate related risks and opportunities.
- Re-establish leadership by restoring the role of the Climate Change Authority, while keeping decision-making and accountability with Government and introducing new annual Parliamentary reporting by the Minister.
Opposition goes back to the future: Government
Minister for Industry, Energy and Emissions Reduction Angus Taylor said that after 132 weeks without a climate policy, Labor have gone back to the future and reheated Bill Shorten’s failed climate policies from the 2016 and 2019 elections.
“At the heart of (the) announcement is a sneaky new carbon tax on agriculture, manufacturing, mining and transport,” he said.
“A future Labor government will legislate to force the nation’s 215 largest industrial facilities to reduce their emissions by 5 million tonnes each year (to zero by 2050).
“Labor’s modelling shows they will force these businesses to purchase 40 million tonnes or $1.66 billion of offsets by 2030 (based on current Australian Carbon Credit Unit prices).
“That’s $1.66 billion in costs that will make these businesses less competitive, forcing jobs and industries offshore.”
Mr Taylor said the Morrison Government has made clear that it will not impose a carbon tax on business by reducing Safeguard Mechanism baselines or expanding its coverage.
The Safeguard Mechanism was set up to ‘safeguard’ reductions achieved through the Emissions Reduction Fund from being overwhelmed by growth in emissions elsewhere in the economy. A future Labor government would turn it into a stick to beat Australian businesses.
Labor given up on climate: Greens
Greens Leader Adam Bandt MP hit out at Labor’s plan, claiming the Opposition has given up on climate.
“Labor’s target is not consistent with the science of limiting global warming to 1.5 degrees, the goal set out in the Glasgow Climate Pact. Labor now joins the Liberals with targets that have given up on the science, given up on Glasgow and given up on the climate,” Mr Bandt said.
“Labor is going backwards on the last election, and a 43% cut is not much more than business as usual. The Greens policy is for a 75% emissions reduction on 2005 levels by 2030 and net-zero emissions by 2035. ”
Opposition’s plan a chance to end climate uncertainty: ACCI
Australian Chamber of Commerce and Industry chief executive Andrew McKellar said the ambitious emissions reduction plans announced by the Federal Opposition offer a pathway to achieve the economic and technological transition towards a more sustainable future.
“Australia needs to pull its weight when it comes to action on climate change. The critical test for this policy, whether it sinks or swims, will be its impact on energy prices for businesses and for consumers. Any transition to reduce emissions must deliver lower power prices and ensure increased reliability,” he said.
“A bipartisan commitment to reach net-zero emissions by 2050 is fundamental for businesses to take action to reduce their emissions. Of course, further analysis of the Federal Opposition’s plan is required to understand the impact that businesses will face in transitioning towards a low-emissions economy.
“With business leading the way, ACCI will continue to work with Government and Federal Opposition to ensure that action on climate change creates jobs, grows businesses and drives our economic recovery to ensure a more sustainable future.”
