I, too, rise in support today of the Net Zero Economy Authority Bill 2024 and its transitional provisions bill. I am very proud that this Labor government is getting on with the crucial job of transitioning our economy for a sustainable future. As the Prime Minister has said:
There is no nation on earth better placed than Australia to achieve the energy transition here at home and power it in the world.
This bill establishes the Net Zero Economy Authority and outlines its key functions, powers and governance arrangements. The Net Zero Economy Authority will promote orderly and positive economic transformation as the world decarbonises. This bill is essential for Australia to embrace our potential as a renewable energy superpower—an opportunity that Australia cannot afford to miss. This new authority will be crucial to ensuring that hardworking Australians in industries such as coal- or gas-fired power stations aren't left behind in the transition and can use their skills in our new renewable industries.
As we know, our economy is undergoing the biggest transformation it has undergone since the Industrial Revolution. It is a huge task and it's also a task that we must see through. There is no room for equivocation or delay. We must transition as quickly as possible. But we can't allow for anyone to be left behind. The government understands that workers in closing industries must be supported through the transition, and Australia is well-placed for this task. Regions like Gladstone, the Hunter Valley, the Latrobe Valley and others have powered our nation for decades and they will continue to do so. Our abundance of renewable energy sources and of every metal and critical minimal essential to net zero technologies can be found in these regions, so it's important that when old industries close, that the employees are empowered to work in the new industries taking their place. That's why this bill will also set up a legislative framework to enable the authority to establish pooled redeployment arrangements to support employees in closing coal and gas stations and dependent employers to transition directly to new jobs at receiving employers.
The authority will be required to undertake a community-of-interest process to identify closing, dependent and receiving employers when a coal- or gas-fired power station announces its closure. The Fair Work Commission will make a community-of-interest determination based on an application from the authority's CEO. There will be obligations on closing and dependent employers to facilitate participation of their employees in the redeployment plan and to provide access to advice and training. While participation by receiving employers would be entirely voluntary, the government will use financial and other incentives to attract the interest of receiving employers. Unions will also have standing to make submissions to the Fair Work Commission regarding the composition of the community of interest, and will have an ongoing role of representing workers during the process.
A strong transition plan such as provided for in this bill is incredibly important. When I was a university student I did my honours thesis on the closure of the Newcastle steelworks and how government, the community, unions and employers came together to ensure the smoothest possible transition of the closure of that iconic steelworks, which employed so many in that community. Many people had worked there their whole lives. For many, three generations of family had worked there. The importance of getting that right for those workers and their families, for the region and for our whole economy was critical. From that, there were many good examples of how this was done, including BHP's response, which was an exemplar of how to manage a closure. There was a significant lead time, and they offered people support in choosing a career path for them after working at the steelworks. They were supportive of a range of different options and were as open as they could be about what people might like to pursue.
There were also some important examples where they matched people's skills to needs in the economy and community. One really good example of that was that, after working in the steelworks, the employees had a high level of technological skill, and there was also at the time a shortage of technology teachers, so BHP supported employees who wanted to take up the option to study to become teachers while still working at the steelworks and then placed them in employment in the New South Wales education system. That's just one example.
Overall, the Newcastle economy transitioned well through that process to different industries that were there. It certainly shows that, when you put in the time to work together with the employees who are facing this who are really at the forefront of the transition—the ones who will be personally affected—it is so important that they are not left behind. We are transitioning to a sustainable net zero economy, which, as I've said, is the biggest change that our economy will ever have seen and one that we must get right, and that's why this bill is so important.
This new authority, with its focus on managing economic change, complements the over $40 billion in government initiatives before the last budget to reduce emissions and become a renewable energy superpower. These investments include the $20 billion Rewiring the Nation program to modernise our electricity grid and in to support a renewables based energy system, the $1.9 billion Powering the Regions Fund to support the decarbonisation of existing industries and the creation of new clean-energy industries, the $6 billion critical minerals facility to grow our critical minerals production sector, the $2 billion Hydrogen Headstart program supporting development of large-scale renewable hydrogen projects and the $15 billion National Reconstruction Fund to deliver and transform Australia's industry for a net zero economy.
Of course, that's not it. In this year's budget, the Treasurer announced $1.7 billion for the Future Made in Australia innovation fund to unlock private capital across new industries such as green metals and low-carbon liquid fuels, $1.5 billion to build capability in solar and battery manufacturing and to strengthen supply chain resilience and $1.9 billion to recharge ARENA's core mission: commercialising and developing new renewable energy technologies.
This bill today builds on this proud record in just our first term. The Net Zero Economy Authority will be a partner on behalf of government with industry investors in getting big, transformational projects underway. They're projects that decarbonise industrial facilities, that build new industries and that grow the future economic base of our country and especially our regions. These are the projects that are powering our transition to a cleaner future. These are projects like the Royalla solar farm, in the ACT, which was opened in 2014 just a short drive from this place. At its time, it was the largest solar farm in the country and was key to helping us here in Canberra get to 100 per cent renewable energy. These are projects like the Star of the South offshore wind farm, 10 kilometres off the coast of Gippsland, which when built has the potential to supply up to 20 per cent of Victoria's electricity needs—20 per cent in just one project.
In fact, since coming to government, we've already approved 46 renewable energy projects, with another 130 in the pipeline. As a result of the Albanese government, we've seen a 25 per cent increase in renewable energy in the National Electricity Market. That's even more incredible when you consider the incredibly low base we are starting from after a decade of inaction from those opposite. The New Zero Economy Authority will supercharge this important work.
On Tuesday, the Prime Minister and the Minister for Climate Change and Energy announced that the inaugural Chair of the Net Zero Economy Authority would be Dr Iain Ross. As the Prime Minister and Minister Bowen said, Dr Ross brings with him a wealth of experience and a deep understanding of labour markets and economics. Previously, he has served as the President of the Fair Work Commission and as a judge in the Supreme Court of Victoria. Dr Ross, on his appointment, said:
The task ahead is monumental, but I am confident that with our collective efforts, we can turn this challenge into an opportunity for Australia. We have the potential to not only achieve net zero emissions by 2050 but also to establish the nation as a leader in renewable energy.
I have full confidence that this new Net Zero Economy Authority will guide us, and Australian workers, through the biggest change to our economy since the Industrial Revolution.
In his speech in the second reading debate, the Prime Minister said, 'We want to create a new generation of economic growth and prosperity for this nation.' The reality is that the world is moving on and so are we. Nations representing 92 per cent of the global economy have signed up to the Paris Agreement commitment to net zero, and 97 per cent of our trading partners have. It's happening, and this government wants Australia to reap the benefits, not get left behind as those opposite would have it. That's why one of our first actions in government was to legislate our net zero target. It's why we've implemented the safeguard mechanism to spur the move to a cleaner future. It's why, just a few weeks ago, we legislated our new vehicle emissions standard to ensure that the cars Australians are driving are cleaner and cheaper to run. And it's why we've put so much work into rebuilding our international relationships after the disaster that was the Abbott-Turnbull-Morrison climate denial diplomacy. Who could forget the empty room in Glasgow as former prime minister Morrison preached about technology, not taxes, and getting to net zero in the so-called Australian way? We are working hard to reset these relationships and our place on the world stage.
When you change the government, you change the nation. The election of the Albanese Labor government in 2022 jump started this country into climate action. We're on track to reach 82 per cent renewable energy by 2030 and net zero emissions by 2050. This bill helps us to do that, and I commend it to the House.
