Federal Government’s Climate Bill becomes law

The Federal Government’s landmark Climate Bill has been passed in Parliament enshrining into Australian law an emissions reduction target of 43% from 2005 levels by 2030 and net zero emissions by 2050.

Under the legislation, the government must report annually on its progress towards that goal.

The Climate Change Act is significant as it demonstrates the majority of Australia’s parliamentarians understand that climate action is a shared and urgent responsibility.

Eight amendments were successfully passed by the crossbench, but another attempt by Greens leader Adam Bandt to bolster the emissions reduction target was struck down.

Bandt moved to change the 2030 target from 43% to “at least 75%", while shifting the timeframe to achieve net zero emissions from 2050 to 2035.

Climate Change and Energy Minister Chris Bowen said the legislating of the targets was not the end of the process and noted "we have a lot more work to do.

"It provides a message to renewable energy investors, storage investors and transmission investors right around the world that Australia is open for business with one set of laws.

"I accepted amendments from the crossbench both in the House of Representatives and the Senate adding things that should go into those reports.

"I was more than happy to do that because I want it to be a full and proper accounting."

Minister Bowen had previously commented back in June that "a decade of denial and delay is a decade too long. We've drawn a line under it, we're getting on with. That is what we were asked to do by the Australian people."

However 43% target is less ambitious than what Labor argued for in previous years, which was to reduce emissions by 50% by the decade's end and climate scientists have noted it will still fall short of what is necessary to limit global warming to "well below" 2 degrees Celsius, the commitment made under the Paris Agreement.

The Climate Council has commended the Federal Government for taking “a big step forward in passing the Climate Act, clearing the way for a new era of urgent and ambitious climate action in Australia.”

The Climate Council says the Climate Change Act 2022 is a welcome starting gun in the race to get emissions plummeting this decade.

Climate Council Chief Executive Amanda McKenzie advised “it’s time to crack on, as the climate crisis is upon us.

“Australia’s politicians are finally working together. Voters made it clear that they want to see progress, and we thank members of the ALP, the Greens and the Independents in both houses of Parliament for working together so constructively to pass this Bill.

“For the first time ever Australia has clear, minimum climate targets enshrined in law. This will help encourage the massive private investment we need to transform our economy to net zero. 

“On its own, the Climate Change Act won’t reduce emissions – so the law should serve as a springboard for more action. It needs to be backed up by credible climate action across every sector of the economy, so we can build on this; going much further and faster this decade.

“The 2020s are the make or break decade for keeping global warming to survivable limits. Everything is at stake if we get this wrong.”

Prime Minister Anthony Albanese said the new target was an opportunity to end the "climate wars".

One of the key levers the new government intends to use to lower emissions is a strengthened "safeguard mechanism", which sets an emissions cap on big polluters and requires them to pay to offset their emissions if they go over the cap.

Prime Minister Albanese said investment in renewables was also the path to solving the nation's energy crisis, which has threatened rolling blackouts on the east coast and led to soaring electricity prices.

Minister Bowen added “as we said in the Nationally Determined Contribution to the UNFCCC, we expect that with government, business and the community all pulling in one direction, our emissions reduction can be even greater.

“I want to thank all members of the House of Representatives that voted in favour of the legislation and their constructive contributions in its formation.

“The passing of this bill in the House of Representatives starts a new era of climate and energy certainty, one that is well overdue.”

The Bill will now proceed to the Senate to be debated in upcoming sitting weeks.

Image: Climate Change and Energy Minister Chris Bowen and Prime Minister Anthony Albanese