Net Zero Economy Authority Would Put Energy System at Risk: Nationals MP

Wind turbines are seen on the horizon at sunset in Albany, Western Australia, on May 19, 2024. (Susan Mortimer/The Epoch Times)

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.

The legislation (pdf), which passed Australia’s lower house on June 4, would establish a government-funded agency to oversee the nation’s transition to a net zero economy and lowering emissions reductions.

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.

The Liberal-National Coalition, representing much of regional Australia, opposed the legislation, which sailed through the House of Representatives 82 votes to 51.

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.

“We don’t mind that renewables have their place in the system, but to try and build a whole system based on weather-dependent, randomly variable generators is absolute madness,” Mr. Gillespie said in a speech to the House of Representatives on June 3.

“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.”

“We have already closed 7,300 megawatts of 24/7 reliable power, with the closure of many power stations. This series of bills does not deliver a just transition. It’s going to affect all of us.”

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.

For example, by 2050, an area of 57 million km2 will be used to generate 174 gigawatts of wind power, while an area of 42 million km2 will be used to generate 1,915 gigawatts of solar power.

Mr. Gillespie said this means that millions of acres of pristine bushland and grazing pasture will be “covered with solar panels and wind farms.”

“And the vast majority are not made in this country,” he added. “They are imported from China and some from Europe, but the market for all these renewable generators is being swamped by cheap renewables coming out of China.”

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.”

Meanwhile, fellow Nationals MP Keith Pitt said the government’s policies will put Australians out of “high-paid, highly skilled jobs” in regional areas which drive their local economies.

Mr. Pitt advocated for nuclear power, saying equipment from coal-fired power plants could be repurposed for nuclear.

“If you are a steam turbine fitter in a coal-fired power station, you have the same job in a nuclear power station,” he said.

$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.