18th Oct 2021, 6:51 PM – Senate Export Finance and Insurance Corporation Amendment (Equity Investments and Other Measures) Bill 2021 - in Committee - Fossil fuels

The majority voted against an amendment introduced by WA Senator Dorinda Cox, which means it failed.

Senator Cox explained that, "This amendment seeks to prohibit Export Finance Australia from investing in fossil fuel projects and fossil fuel based infrastructure."

Amendment text

(1) Page 7 (after line 16), at the end of the Bill, add:

Schedule 3 — Fossil fuels

Export Finance and Insurance Corporation Act 1991

1 Subsection 3(1)

Insert:

fossil fuel-based infrastructure:

(a) subject to paragraph (b), includes infrastructure for:

(i) the extraction or transportation of fossil fuels; or

(ii) fossil fuel-based electricity generation; and

(b) does not include electricity transmission infrastructure.

fossil fuels includes any of the following:

(a) coal;

(b) oil and other petroleum-based products;

(c) natural gas;

(d) products, by-products and wastes from extracting or processing fossil fuels to which paragraphs (a) to (c) apply.

2 Subsection 3(1) (definition of Northern Australia economic infrastructure )

Repeal the definition, substitute:

Northern Australia economic infrastructure:

(a) subject to paragraph (b), has the same meaning as in the Northern Australia Infrastructure Facility Act 2016; and

(b) does not include fossil fuel-based infrastructure.

3 Subsection 3(1) (definition of overseas infrastructure development )

After "of infrastructure", insert "(other than fossil fuel-based infrastructure)".

4 Before section 81

Insert:

80A Prohibition on assistance for fossil fuel-based infrastructure

(1) Assistance must not be provided under this Act if the assistance is for purposes relating to, or is expected to result in, the development of fossil fuel-based infrastructure.

(2) It must be a condition of any assistance provided under this Act that the assistance not be used (whether directly or indirectly) for the development of fossil fuel-based infrastructure.

(3) Assistance includes a guarantee, indemnity, loan, insurance, reinsurance, financial service, financial product, subsidy or investment.

What does this bill do?

According to the bills digest:

The purpose of the Export Finance and Insurance Corporation Amendment (Equity Investments and Other Measures) Bill 2021 (the Bill) is to give legislative effect to the Government’s decision to broaden the range of transactions that Export Finance Australia (EFA) can finance.

Specifically, the Bill will amend the Export Finance and Insurance Corporation Act 1991 (the EFIC Act) to:

• permit EFA to make equity investments and
• permit EFA Australia to offer standalone guarantees for overseas infrastructure transactions.