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senate vote 2023-03-29#4
Edited by
mackay staff
on
2023-03-31 08:32:46
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Title
Bills — Safeguard Mechanism (Crediting) Amendment Bill 2023; Second Reading- Safeguard Mechanism (Crediting) Amendment Bill 2023 - Second Reading - Agree with bill's main idea (with comment)
Description
<p class="speaker">David Pocock</p><p>by leave—I move my second reading amendment on sheet 1890:</p><p class="italic">At the end of the motion, add ", but the Senate:</p><p class="italic">(a) is of the opinion that:</p><p class="italic">(i) public funding to Safeguard Mechanism facilities should only be provided where it will support genuine business transformation to decarbonise operations, and</p><p class="italic">(ii) access to the Powering the Regions Fund should be subject to the following restrictions:</p><p class="italic">a. fossil fuel producers should be denied access,</p><p class="italic">b. companies receiving funds must be prevented from using the funds to purchase Australian Carbon Credit Units, and</p><p class="italic">c. companies receiving funds must have a publicly available Corporate Transition Plan that includes measures being taken to reduce emissions and ensure transparency and identifies verifiable and quantifiable key performance indicators which track the success of transition actions, and must complete annual reporting on the implementation of the plan; and</p><p class="italic">(b) calls on the Government to:</p><p class="italic">(i) prevent Safeguard Mechanism facilities from surrendering Australian Carbon Credit Units unless there is a high degree of certainty that the abatement that they offer is real, additional and permanent,</p><p class="italic">(ii) implement the Chubb Review of Australian Carbon Credit Units in full as a matter of urgency, and</p><p class="italic">(iii) increase the funding available through the Powering the Regions Fund".</p><p>Question negatived.</p> <p class="speaker">Sue Lines</p><p>The question now is that the second reading, as amended, be agreed to.</p><p></p><p></p> -
- The majority voted in favour of agreeing with the main idea of the bill. In parliamentary jargon, they voted to [read the bill for a second time](https://peo.gov.au/understand-our-parliament/how-parliament-works/bills-and-laws/making-a-law-in-the-australian-parliament/). This means that they can now consider it in more detail.
- ### Motion text
- Note that the wording of the motion voted on it this division was a little different from normal due to a [previous amendment](https://theyvoteforyou.org.au/divisions/senate/2023-03-29/3), so the motion text was:
- > *That this bill be now read a second time, but the Senate calls on the Government to:*
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- >> *(a) in line with its commitment to implementing recommendation 9.8 of the final report of the [Pepper Scientific Inquiry into Hydraulic Fracturing in the Northern Territory](https://territorygas.nt.gov.au/sustainability-and-responsibility/the-scientific-inquiry-into-hydraulic-fracturing), ensure the gas industry in the Northern Territory’s Beetaloo Basin is required to offset all Scope 2 and 3 emissions by referring this matter to the Energy and Climate Change Ministerial Council, and work with the Northern Territory Government to achieve this;*
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- >> *(b) support First Nations communities in carbon sequestration projects on Country, including but not limited to savanna burning, and on Sea Country, including but not limited to kelp farming; and*
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- >> *(c) support First Nations-led verification assessment of environmental, social and cultural values of carbon farming and sequestration projects and invest in training for these purposes in First Nations communities, including but not limited to communities in regional and remote areas and on missions and reserves”.*
- ### What is the bill's main idea?
- The [bills digest](https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/bd/bd2223a/23bd048), which is a document put together by the parliamentary library, sets out the following key points:
- * *Proposed revision of the existing ‘Safeguard Mechanism’ applying to Australia’s largest emitters is a central element of the Australian Government’s commitment to achieve a 43% reduction in greenhouse gas emissions by 2030 and net zero by 2050.*
- * *The Safeguard Mechanism commenced operation on 1 July 2016 and has, to date, operated as a greenhouse gas emissions reporting mechanism for around 212 of Australia’s largest industrial facilities.*
- * *The Safeguard Mechanism (Crediting) Amendment Bill 2022 amends relevant Acts to alter the Safeguard Mechanism so that covered facilities must reduce their scope 1 (direct) emissions in future.*
- * *The primary amendments to the National Greenhouse and Energy Reporting Act 2007 and Australian National Registry of Emissions Units Act 2011 establish the administrative architecture to create ‘safeguard mechanism credit units’ (SMCs). The amendments provide for dealings in SMCs in the same manner as Australian Carbon Credit Units (ACCUs).*
- * *Key elements of the revised scheme will be implemented via amendments to existing legislative instruments (rules) made by the Minister. The Clean Energy Regulator (CER) will also be able to make key determinations, as provided for in these instruments.*
- * *Stakeholders have expressed concern about the limited timeframe for consultation and staggered release of key documents (including legislative instruments and the Independent Review of Australian Carbon Credit Units (Chubb Review)), which they regard as limiting a fulsome consideration of the proposed amendments.*
- * *Moreover, whilst environment and climate focused groups have argued that amendments are insufficient, key industry stakeholders acknowledge the need for change but have expressed concern about particular aspects of the proposed amendments.*
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