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2010
LEGISLATIVE ASSEMBLY FOR THE
AUSTRALIAN CAPITAL
TERRITORY
CLIMATE CHANGE AND
GREENHOUSE GAS REDUCTION BILL
2010
EXPLANATORY
STATEMENT
Presented by
Mr Simon Corbell MLA
Minister for the
Environment, Climate Change and Water
CLIMATE CHANGE AND GREENHOUSE GAS REDUCTION BILL
2010
• to reduce by 30 June 2020 greenhouse gas emissions by 40% of 1990 levels;
• to reduce by 30 June 2050 greenhouse gas emission by 80% of 1990 level
• achieve zero net emissions by 2060.
Detailed Explanation
Part 1
Preliminary
Clause 1 provides for the name of the legislation
as the Climate Change and Greenhouse Gas Reduction Act 2010 reflecting that the
Act relates to both the cause and impacts of climate change.
Clause 2
provides for the commencement as the day fixed by the Minister by written
notice.
Clause 3 provides for the dictionary to be part of the
legislation.
Clause 4 explains that notes included in the Act are
explanatory and are not in themselves part of the Act.
Clause 5
sets out the objects of the Act. The objects are aimed at
reducing greenhouse gas emissions and increasing renewable energy use and
generation in the ACT. The objects are to put in place monitoring and reporting
of progress against these targets, and to facilitate the development of policies
and programs to meet those targets.
The Bill’s objects provide
that private entities should be encouraged take action and be recognised for
actions that contribute to the targets, and in addressing climate change.
The objects recognise that policies and programs will also need to be
developed to address and adapt to unavoidable climate change.
Part 2
Targets
Clause 6 sets out the principal target of zero net
emissions by 2060 in the ACT, noting that total emissions will be reduced
through avoidance and mitigation activities, and may be offset outside of the
ACT. Greenhouse gases that are included in the legislation are described in the
dictionary. There is no baseline needed for this measurement because it is an
absolute value.
Clause 7 sets out interim targets
that will be measured against a baseline of 1990 emissions. The 1990 baseline
reflects the current commitments of parties to the Kyoto Protocol under the
United Nations Framework Convention on Climate Change. While the Australian
Government is signatory to the Protocol rather than individual jurisdictions,
the 1990 baseline would provide for comparison of the ACT’s progress to
parties to the Kyoto Protocol. Use of financial year reporting for greenhouse
gas inventories is consistent with the national Greenhouse Gas Inventory, and
international processes for greenhouse gas accounting.
Clause 8
sets out per capita targets for greenhouse gas emissions to peak by 30 June
2013. A per-capita peaking target will provide an interim target for progress
that is independent of population growth.
Clause 9 provides for
the prescription of renewable energy targets for the use or generation of
renewable energy in the ACT given the strong link between reductions in
greenhouse gas emissions and increases in renewable energy generation.
Clause 10 requires that the Minister must determine
a method for measuring greenhouse gas emissions and that this would be a
disallowable instrument. The aim of this clause is to ensure that methods for
measuring greenhouse gas emissions are rigorous and transparent.
Clause 11 provides for a report by an independent entity on
greenhouse gas emissions and targets that are outlined against clauses 6 to 9 of
part 2 of the bill. The clause provides that the emissions must be measured
against the methodology established under clause 10. The aim of clause 11 is to
ensure transparency in reporting against the target at arms length from
government.
The report is intended to provide analysis that compares
progress against the intent of the targets, to identify the main source of
emissions and to elucidate the reasons for changes. The purpose of these
requirements is to enable the government to maintain and adjust its policy and
program settings to build on successful outcomes and to take account of broader
changes in Australian and international policy, and in society that could impact
on progress towards the targets.
The clause provides statutory
timeframes for reporting.
Part 3 Functions of the Minister
Clause 12 sets out the functions of the Minister in relation
to the Act, and in climate change generally. This provision acknowledges that
action on climate change and reporting against zero net greenhouse gas emissions
by 2060 requires a formalised and ongoing Ministerial responsibility.
The clause recognises that ACT action needs to occur within regional,
national and international contexts.
It also recognises that the
community and business sectors have important contributions to make and that the
problem of climate change is not one that the Government can address on it own.
The Climate Change Council (established through Part 4) is also recognised in
this clause because of the expertise and assistance it can provide to the
Minister in exercising the Minister’s functions.
Clause 13
establishes that the Minister must provide a report on activities and
actions taken during the year against the range of functions outlined in clause
12. The clause provides that all government agencies as defined in the Public
Sector Management Act 1994 must report any policies developed and programs
implemented to address climate change, greenhouse gas emissions and any targets
identified in part 2, which would include renewable energy targets. This report
differs from that identified in clause 11 in its focus on actions and activities
which will contribute to the outcomes that are the subject of clause 11.
The clause provides that the Minister must provide the report for the
legislative assembly within 6 months of the end of the financial year to which
the report pertains.
Part 4 Climate Change
Council
Clause 14 establishes the Climate Change Council as an
entity.
Clause 15 establishes the functions of the Council to
advise the Minister in two key areas:
1. Reducing greenhouse gas emissions;
and
2. Addressing and adapting to climate change
A number of key
areas where the Minister is to receive advice are outlined including energy
efficiency, renewable energy generation, meeting targets, and community and
business view on climate change. The clause also identified that advice on
private actions, and action taken to encourage private actions may be the
subject of advice.
The Council may also advise on a range of practices,
policies and technological developments used elsewhere that may be of use in the
ACT to reduce greenhouse gas emissions and address climate change.
The clause
identifies that additional functions may be allowed under the ACT which aims to
provide flexibility in the functions as long as they assist in implementing the
provisions of the Act.
The clause provides guidance to the Council on
how it must go about developing its advice to the Minister. This aims to ensure
that a wide range of views are captured in the advice, and that the advice has a
broad contextual basis.
The clause provides that the Council must
consider reports from the independent entity outlined in clause 11, and any
other report referred to the Council by the Minister. The clause aims to ensure
that advice from the Council is well informed. The clause also provides that
the Council must give consideration to social, economic and environmental
impacts and national and international developments to ensure the advice is
comprehensive and well considered.
Clause 16 aims to ensure that
relevant advice from the Council is considered by the Minister in the exercise
of the Ministerial functions.
Clause 17 establishes the membership
arrangements relating to the Council. The clause aims to establish a Council
that is of workable size of 5 to 9 members from a range of community and
business interests and scientific expertise. The clause allows that conditions
of appointment are those stated in the appointment.
Clause 18
provides that the Chair of the Council is to be appointed by the
Minister.
Clause 19 sets out the circumstances in which
the Minister can terminate an appointment to the Council. This includes
arrangements for the Council to recommend with a two-thirds majority the
termination of a member’s appointment. The aims of this clause is to
ensure a transparent process and reasonable grounds for termination of a
member’s appointment.
Part 5 Sector
Agreements
Clause 20 allows the Minister to enter into
voluntary sector agreements to reduce greenhouse gas emissions, increase
renewable energy sources, and offset greenhouse gas emissions where these are
consistent with the objects of the Act. Regulations may prescribe requirements
for sector agreements,
Once agreed a sector agreement is a notifiable
instrument. The aim of this clause is to formally recognise sector
partnerships that will contribute to the purpose of the act to reduce greenhouse
gas emissions to meet the targets established under the Act.
Part 6
Miscellaneous
Clause 21 provides that the Minister must review
the operation of the Act and its subsidiary instruments after the first
five-years and each subsequent ten years of the Act’s operation.
An initial review after five years will identify any required immediate
changes to policy settings early in the operation of the Act. Subsequent
reviews every ten years are considered sufficient to take account of changes in
the broader policy context, developments in scientific knowledge and progress
against the targets.
Clause 22 provides a broad regulation
making power.
The Dictionary provides a definition of greenhouse
gas emissions and provides that other gases may be included if they are
prescribed by regulation. The definition of Council refers to the Climate
Change Council established under clause 14.