I questioned the Department of Climate Change, Energy, the Environment & Water (DCCEEW) about a recent report from the Australian National Audit Office (ANAO). The report was critical of the department.
The report from ANAO on Governance of Climate Change Commitments states that the DCCEEW CANNOT demonstrate the extent to which specific policies and programs have contributed, or are expected to contribute towards emissions reduction.
We are turning our entire economy upside down to chase this net-zero lunacy and no one can even say if it’s going to do anything.
Even though it was reported that the department agreed with all five ANAO recommendations, the Minister and staff, in response to my estimates’ questioning, said that they do not agree with ANAO’s findings and read out a long list of projections and guestimates.
I asked again for evidence of human-induced climate change and was told the government is committed to the United Nations 2050 Net Zero. I will continue asking about a cost-benefit analysis on Net-Zero, which appears not to exist. And finally, I will request how much this new Labor Department for Climate Change is going to cost the Australian taxpayer.
Transcript
Senator ROBERTS: Thank you all for being here today. The Australian National Audit Office said in January—this is from its own report:
DCCEEW reports annually on progress towards targets, however is unable to demonstrate the extent to which specific Australian Government policies and programs have contributed or are expected to contribute towards overall emissions reduction.
I find that incredible. We see that solar and wind have taken Australia from lowest cost electricity providers to amongst the highest. There are dramatic impacts on cost of living and adverse effects on inflation and grocery prices. Everything is impacted by energy and electricity, including security and international competitiveness. I’ve just come back from North Queensland, where I’ve seen massive destruction of the environment up there. Some of the large solar and wind projects in Western Victoria and in North Queensland are not even connected to the grid, but we’re paying for them. At your behest, the government is completely upending our entire economy. You are destroying the cheap power grid we had. You’re going to make it nearly impossible to buy a new Toyota Hilux. You’re trying to force everyone into electric vehicles. You’re spending $20 billion on Snowy 2 and you can’t tell anyone whether anything the government has done has actually made a difference. I think that is because it hasn’t made a difference. What quantifiable difference have these solar and wind and other so-called policies made?
Mr Fredericks: Senator, if it’s okay with you, I might take up the ANAO issue. There was quite a detailed response from the department to that. If it is okay with you, I might ask Ms Evans to give you a response.
Senator ROBERTS: A response to the ANAO findings. I would also like to know the quantifiable difference these policies have made to our country.
Ms Evans: I will answer both. In the first part, the department disagrees with the finding that you read out from the ANAO report. We do, in fact, have quite a comprehensive way of reporting on policies and programs and what they contribute to our emissions reductions, which Ms Rowley will be able to take you through in a moment. With regard to the overall outcomes, you can see that—in fact, it is part of the same answer—in our annual national greenhouse gas inventory and all of the results that come from that there is a definite decline in Australia’s emissions over the period that we’ve been looking at. Again, Ms Rowley can give you the specific details on that. I think we are up to about 24 or 25 per cent below 2005 levels at this stage. All of those policies that you were referring to have contributed to those reductions in emissions, which are contributing to a global response to climate change. Ms Rowley will take you through the very substantial way in which we track our policies and programs.
Ms Rowley: Thanks you, Ms Evans. The ANAO was essentially seeking measure by measure modelling and tracking the impact of every policy over time, which we consider is neither practical nor efficient given that different policies and measures interact, particularly as the policy mix changes over time. They are also impacted by structural changes in the economy. However, we evaluate the impact of policies and programs on emissions during their development. That is part of the public consultation on the design of the policies ex ante, so ahead of time. In general, we prioritise policies that are going to have a material impact on Australia’s greenhouse gas emissions. That analysis then becomes part of the cost-benefit analysis to inform government decisions.
In terms of reporting on progress, this occurs through a number of channels. The department and government report progress against the 2030 target transparently and independently through channels such as the Climate Change Authority’s annual progress report, the minister’s annual climate change statement to parliament and Australia’s annual emissions projection report. As Ms Evans said, we also report on Australia’s actual emissions over time each year through our national inventory report and every quarter through the quarterly update. Both the inventory—
Senator ROBERTS: Just a minute. So what you’re saying, as I understand it, is that various other entities report on this?
Ms Rowley: Other entities, including the independent Climate Change Authority and the department through its work on the national inventory and the annual projections.
Senator ROBERTS: But they actually report on aspects of it—bits of it, not the whole lot?
Ms Rowley: No. Particularly documents like the emissions projections, which are one of our signature reports—
Senator ROBERTS: Emissions projections?
Ms Rowley: Emissions projections. It’s an annual report. It tracks and projects Australia’s progress towards its 2030 target. I could use that as an example to illustrate how we look at the impact of specific policies. The 2023 projections, which were published in December last year, include detailed analysis of the abatement arising from some of the government’s key mitigation policies. For example, the safeguard mechanism reforms are estimated to deliver just over 50 million tonnes of abatement in 2030. The projections report provides detail, including the projected mix of onsite abatement and the use of credits over time as well as how that policy impact is distributed across the different sectors, which are covered by the safeguard mechanism. It also includes details of the Australian carbon credit unit scheme, estimating that it will grow from delivering 17 million tonnes of abatement last year, 2023, to 30 million tonnes in 2033. Again, the projections provide reports on the types of projects, price forecasts and the sectoral split of activity.
With the additional measures scenario, which is also part of that 2023 projections report, there are reports on the potential impacts of some of the policies that are still under detailed design and development. For example, the government’s 82 per cent renewable electricity target is supported by measures such as the capacity investment scheme and the Rewiring the Nation program, which is estimated to deliver 21 million tonnes of abatement in 2030. The projections report provides detail across the different electricity grids covered by that target. It also provides quantitative estimates for the fuel efficiency standard for new vehicles, which the government is currently consulting on. Whilst that was a relatively stylised analysis given that the policy is still being designed, we estimated that would deliver a net six million tonnes of abatement in 2030.
Senator ROBERTS: That is a lot of alphabet soup. Thank you. The point is, though, you have no evidence. The ANAO is not convinced you have any evidence. You can’t demonstrate how a specific policy has made any difference to the production of carbon dioxide from human activity. That is not me saying it; that is the ANAO.
Ms Rowley: Senator Roberts, you will recall that Ms Evans noted that the department disagrees with that finding. As I outlined, there is a range of analytic work and public reports that the department and other entities across government conduct to ensure that there is a careful analysis of the emissions implications of key policy reforms that have a material impact on Australia’s emissions. I have given you some examples of that.
Senator ROBERTS: I don’t know whether you are aware of it or not, Ms Rowley, Ms Evans or Minister McAllister, but no-one anywhere has been able to provide me with a quantified specific effect of cutting carbon dioxide from human activity on climate. What basis is there for tracking policy when there’s no fundamental foundation for it anyway? So is anyone able to tell me the impact of carbon dioxide from human activity on any aspect of the climate specifically in a quantified way? How are you able to track that when there’s no basis for it?
Senator McAllister: There are two things. One is that this is a well-worn path between you and me.
Senator ROBERTS: Yet, Minister, I still haven’t seen that.
Senator McAllister: Perhaps I can answer. It is a source of fundamental disagreement. You do not accept the science that human activities—
Senator ROBERTS: Correction. I do accept the actual empirical scientific evidence.
CHAIR: Okay. Let’s not cut across each other.
Senator ROBERTS: I want to make sure the minister doesn’t—
CHAIR: Senator Roberts, there is a difference of opinion here, a difference of interpretation of which science is whose. Can we stick to asking the questions and listening to the answers? You can probe it as much as you like. Let’s keep it civilised here.
Senator McAllister: To assist Senator Roberts, I will put my answer in different terms. This government does accept the science that human activities are inducing global warming. That presents a threat to human systems and the biodiversity that our human activities depend upon. I understand from comments you’ve made previously, Senator Roberts, that is not your position. But that is the government’s position. As a consequence, we are committed to reducing Australia’s contribution to anthropogenic emissions to 2050. That is a position that, as I understand it, is bipartisan. I believe that remains the position of the coalition as well. It is the basis on which we are also committed to that by way of our participation in the processes of the United Nations Framework Convention on Climate Change.
Senator ROBERTS: Thank you, Minister.
Senator McAllister: The second point I wish to make is that this is not a feature of the ANAO’s assessment of the department. The question the ANAO sought to answer was whether the department is using its resources well to meet those emissions reduction targets. The evidence that has been provided to you by now Ms Evans and Ms Rowley goes to the way that the ANAO engaged with that question.
Senator ROBERTS: Thank you, Minister. Can you tell me or anyone in the department, because you are driving this, the cost per unit of carbon dioxide decrease to our economy? What is the cost to individual Australians? I have never seen a cost-benefit analysis or a business case for this ever. No-one has ever said that they’ve done that.
Ms Evans: We might take on notice to put down a response that adequately reflects the costs and benefits of climate action in Australia.
Senator ROBERTS: Thank you, Ms Evans. Specifically I would like to know the cost per unit of carbon dioxide decreasing.
CHAIR: Senator Roberts, I’m going to rotate the call.
Senator ROBERTS: I would also like to know your total annual budget, please.
Mr Fredericks: Of the department?
Senator ROBERTS: Yes.
Mr Fredericks: Okay. We’ll take it on notice.
Senator ROBERTS: Thank you.
