A Nationals MP has criticised the government’s Net Zero Economy Authority bill, saying it’s an “unnecessary” body that will further contribute to the destruction of the country’s energy system.
What Does The Bill Do?
The agency will have the power to issue a “trigger notice” and involve the Fair Work Commission to protect workers when a coal-fired or gas-fired power station closes.It will also support workers working in “emissions-intensive” industries to find new work, or improve their employment prospects.
The new government office will comprise a board, CEO, and staff who will consult and work on driving public and private sector investment in the net zero transformation. The board, including the chair, will be appointed by a government minister, who will also give directions to the board.
Concerns About Australia’s Transition To Renewable Energy
Nationals MP David Gillespie argued that the regulatory body would facilitate the process of making Australia’s energy system dependent on renewables, which would come at a cost to the environment, energy affordability, and local jobs.He said the legislation is the latest in a series of bills aiming to change Australia’s baseload energy system into “a mythical, utopian green renewable-based energy system.”
He described the Net Zero Economy Authority as a “duplicated, unnecessary” entity because there are already systems in place that address similar issues, such as the Clean Energy Finance Corporation and the Australian Renewable Energy Agency.
“The legislation will coordinate the destruction of our energy system, coordinate policy and planning across government, and facilitate both government and private participation in investment—which is usually code for ‘price signals,’ commonly known as subsidies—and support for affected workers.”
What Does The Study Say?
Mr. Gillespie cited findings from the 2022 Net Zero Australia study (pdf), which was authored by researchers at the University of Melbourne, the University of Queensland, Princeton University and international management consultancy Nous Group.The study estimated that to become a green energy economy, Australia would need to have 400-500 gigawatts of renewables serving the domestic energy system, compared to 25 gigawatts today.
The cost of the transition is expected to be around $7-9 trillion invested in infrastructure projects by 2060—around six times the business-as-usual amount.
In addition, Australia would need to “establish a large fleet of batteries, pumped hydro and gas-fired firming,” with vast areas of land repurposed to support the renewable transmission systems.
Mr. Gillespie said this means that millions of acres of pristine bushland and grazing pasture will be “covered with solar panels and wind farms.”
Impact On The Economy
The Nationals MP also argued the push to make Australia overly reliant on renewable energy would “destroy our cheap electricity system.”“It is already multiple times more expensive than it was when we had predominantly baseload with a sprinkling of renewables.”
The Net Zero Australia study estimated the total annual domestic energy system cost to increase from about $90 billion a year today to over $150 billion a year by the late 2030s for the energy transition to happen.
The Albanese government have argued that having a renewable energy economy would unlock thousands of employment opportunities.
The sentiment was echoed by Assistant Minister to the Prime Minister Patrick Gorman, who said the Net Zero Economy Authority will help ensure generations of Australia can power the nation while not affecting workers.
“Australian workers, Australian industry, Australian communities, working together to power every part of our nation and every one of us. The way we power Australia will change. But those who do it will not,” he said.
“The target is clear—achieve net zero emissions by 2050 to avoid the most dangerous impacts of climate change. The pathway is clear—power our industries, light our homes and our businesses and fuel our transport with clean energy.”
But Mr. Gillespie argued that jobs in a solar farm or a wind farm are mainly on a temporary basis, and most of the jobs in the green economy “won’t be delivered in our country.”
“They'll be delivered over in China or in Asia, where they make all these turbines.”
Mr. Pitt advocated for nuclear power, saying equipment from coal-fired power plants could be repurposed for nuclear.
$1 Billion to Fund Office
In the 2024 budget, the federal Labor government announced an extra $399.1 million (US$266.1 million) funding for the regulatory office (pdf).This includes $209.3 million over four years from 2024 to 2025, to expand the agency for policy development, brokering investments for jobs in the regions, and supporting workers impacted by the transition.
A total of $134.2 million over the same timeframe will go towards support for workers and communities impacted by net zero.
Further, $44.4 million over four years will go towards an energy industry jobs plan to help employees impacted by coal and gas fired power station closures.
About $10 million will go towards a public information campaign, while $1.3 million over four years will pay for Treasury developing and publishing guidance for businesses involved in net zero.
A further $616.8 million has been allocated for the agency between the 2029 and 2035 financial years and $93.4 million per year ongoing.