4th Jun 2024, 5:56 PM – Representatives Net Zero Economy Authority Bill 2024 - Consideration in Detail - Increase scope of bill

The majority voted against amendments introduced by Warringah MP Zali Steggall (Independent), which means they failed.

What do these amendments do?

Ms Steggall explained that:

These amendments, along with many that have been put forward by the crossbench, are seeking to improve this legislation. Earlier this week, I spoke on the Net Zero Economy Authority Bill 2024, and today these amendments are trying to address the issues there are with that bill. As the bill currently stands, it has a narrow and hypertargeted scope that fails to provide the authority with what is necessary to genuinely support a net zero economy transition. This bill restricts the type of employer or worker that is afforded that just transition to support under the act, specifically limited only to those transitioning from coal- and gas-fired power stations.

Amendment text

(1) Clause 4, page 3 (line 24), omit "or a gas-fired power station", substitute ", gas-fired power station or other relevant facility or business".

(2) Clause 5, page 8 (after line 11), after the definition of national security information, insert:

net zero emissions economy means an Australian economy where:

(a) Australia's absolute greenhouse gas emissions have been significantly reduced to zero or to a residual level consistent with global efforts to limit the temperature increase to 1.5℃ above industrial levels in accordance with Articles 2 and 4 of the Paris Agreement; and

(b) any residual Australian greenhouse gas emissions are neutralised by, and continue to be neutralised after, the net zero target date.

net zero target date means the target date set out in paragraph 10(1)(b) of the Climate Change Act 2022 for Australia's net greenhouse gas emissions to reduce to zero.

(3) Clause 6, page 10 (after line 23), after subclause (2), insert:

(2A) An employer is also a closing employer if:

(a) the employer:

(i) is a constitutional corporation; and

(ii) owns (whether alone or jointly) or operates (whether alone or jointly) one or more parts of a facility that is a designated large facility for the purposes of the National Greenhouse and Energy Reporting Act 2007 for a financial year;

whether or not the employer employs employees to perform work at the facility; or

(b) the employer is a constitutional corporation that owns (whether alone or jointly) or operates (whether alone or jointly) one or more parts of a business specified in a determination under subsection (2B).

(2B) The Minister may, on recommendation by the Authority, determine in writing one or more classes of businesses for the purposes of paragraph (2A)(b).

(2C) The Minister must cause a copy of the determination (including as varied) to be published on the Authority's website.

(2D) A determination under subsection (2B) is not a legislative instrument.

(2E) The Authority may, by notifiable instrument, make recommendations for the purposes of subsection (2B).

(4) Clause 6, page 11 (after line 19), after subclause (4), insert:

(4A) An employer is also a dependent employer if the employer (the relevant employer):

(a) is a constitutional corporation; and

(b) has a commercial relationship with:

(i) a closing employer within the meaning of subsection (2A); or

(ii) an associated entity of such a closing employer; and

(c) will, or will be likely to, cease a substantial part of the operations carried on by the relevant employer at the facility or business concerned, or in the same geographic area in which the facility or business concerned is located, as a direct result of the eventual closure of that facility or business.

(5) Clause 7, page 12 (after line 26), after subclause (2), insert:

(2A) A transition employee, of a closing employer within the meaning of subsection 6(2A), is an employee of the closing employer who is employed to perform work at the facility or business concerned.

(6) Clause 7, page 13 (after line 5), at the end of the clause, add:

(5) A transition employee, of a dependent employer within the meaning of subsection 6(4A), is an employee of the dependent employer who is employed to perform work in the operations that will, or will be likely to, cease as mentioned in paragraph 6(4A)(c).

(7) Clause 9, page 13 (line 21), omit "or a gas-fired power station", substitute ", gas-fired power station or other relevant facility or business referred to in subsection 6(2A)".

(8) Clause 9, page 13 (line 26), omit "or a gas-fired power station", substitute ", gas-fired power station or other relevant facility or business referred to in subsection 6(2A)".

(9) Clause 16, page 17 (after line 15), after paragraph (1)(b), insert:

(ba) with the Climate Change Authority and in consultation with industry, communities and the public and private sector—to proactively plan, coordinate and advise on the phasing out of fossil fuels, including their exploration, extraction and export and their use in Australia;

(10) Clause 16, page 18 (lines 3 to 6), omit subclause (2), substitute:

(2) In performing the Authority's functions, the Authority must have regard to the following principles:

(a) the principle of prioritising communities, regions, industries and workers that are or will be:

(i) concerned with manufacturing, installing or maintaining equipment, appliances, vehicles or devices that consume fossil fuels; or

(ii) otherwise significantly affected by Australia's transition to a net zero emissions economy;

(b) the principles of:

(i) economic efficiency; and

(ii) environmental effectiveness; and

(iii) equity; and

(iv) the public interest; and

(v) the impact on households, businesses, workers and communities; and

(vi) an effective global response to climate change; and

(vii) consistency with Australia's foreign policy and trade objectives; and

(viii) complying with Articles 2, 4, 8 and 12 of the Paris Agreement; and

(ix) boosting economic, employment and social benefits, including for rural and regional Australia; and

(x) achieving the safeguard outcome in paragraph 3(2)(d) of the National Greenhouse and Energy Reporting Act 2007;

(c) any other principles that the Authority considers relevant.

This subsection has effect subject to subsections (4) and (5).

(11) Clause 21, page 23 (line 5), omit "5", substitute "7".

(12) Clause 23, page 24 (after line 26), after paragraph (3)(f), insert:

(fa) climate science;

(fb) engineering;

(13) Clause 54, page 40 (line 5), omit "or a gas-fired power station", substitute ", gas-fired power station or other relevant facility or business".

(14) Clause 55, page 42 (line 29), omit "or a gas-fired power station", substitute ", gas-fired power station or other relevant facility or business".

(15) Clause 56, page 43 (line 24), omit "or gas-fired power station", substitute ", gas-fired power station, facility or business".

(16) Clause 56, page 45 (line 2), after "power station", insert ", facility or business".

(17) Clause 57, page 47 (line 11), after "power station", insert ", facility or business".

(18) Clause 57, page 47 (line 25), after "power station", insert ", facility or business".