It gives me great pleasure to stand today in support of this very important bill, the Safeguard Mechanism (Crediting) Amendment Bill 2022, a bill that is a critical step on our path towards net zero and a critical part of ending a decade of inaction on emissions reductions. It is a bill that will ensure that we get to 43 per cent emissions by 2030 and net zero by 2050, a bill which will finally get Australia back at the global table and with the respect of our international neighbours, and a bill that is an integral part of the very important work of decarbonising our economy and transforming Australia into a renewable energy superpower.

As on so many important issues, for three years I sat in this chamber in the last term in absolute despair as the former government stood in the way of action on the climate crisis. I listened to speeches denying the science, and the previous contribution from the member for New England was just another example of that; it continues. They have learnt nothing. They are not following the science. In fact, he actually referred to climate action as a 'religion' in his previous speech, and this is the sort of nonsense that the Australian people were subjected to by their former government for a decade. In parts of the country where there are concerns about the impacts of climate action, a big part of the blame for that is on the former government for this misleading, for the culture wars and for the absolute rubbish that we heard for a decade. I am very pleased now to be speaking in support of a bill that is going to put in place the important changes we need to get going along that path.

In the previous term we watched as the coalition tore itself apart over just committing to net zero. When they finally did adopt it, they had no plan on getting there and were basically treated as an international pariah at COP26 in Glasgow. Quite simply, no-one believed a word that the former Prime Minister said. He said at COP that his government was acting on climate in 'the Australian way', which I think brings 'the Australian way' into disrepute, because Australians are people who take action and get on with things, and what they were doing on climate action was absolutely nothing. He pledged to meet net zero by 2050 with no plan—just a pamphlet and an Abbott-era interim target.

While the world considered putting carbon tariffs on this country for Mr Morrison's inaction, the Australian people also passed their judgement and they voted for climate action at the election last year. They demanded real climate action and they voted for change, and that's what we're getting today. I know that my community in Canberra is an incredibly engaged and active community when it comes to climate action, and I know that it wants nothing less than the ambitious action we need because we are, in fact, in a climate crisis.

Last year, the world saw the largest single investment in climate action ever, and that was when President Biden signed into law the Inflation Reduction Act. The equation changed, and it changed dramatically. This new law directed close to US$400 billion in US government funding into the clean energy revolution. Whether it be subsidies for renewables, green transportation or transmission lines, this is a huge paradigm shift. As the Prime Minister has said in question time, this bill will have a huge impact around the world. It was, in essence, the starting gun for a hugely competitive race to become a renewable energy superpower.

The Inflation Reduction Act creates huge incentives for capital investment in manufacturing and other industries to be directed into the United States. That's why it's incredibly important that the Australian parliament passes this important legislation before us so that our nation is not left behind and, as Labor has been talking about for so long, so that we build on our natural advantages and become that renewable energy superpower. We are blessed with significant renewable energy resources, and if we can harness this opportunity and export it to the world this becomes our jobs opportunity. This government knows that, Australian businesses know that, and the Australian people know that and told us very clearly on 22 May last year.

The government also understands the huge challenges that come with decarbonising our economy. Increasing the share of renewables in our grid to 82 per cent by 2030 won't be easy. It requires a lot of investment and a lot of work to turn this ship around, and we don't have a whole lot of time remaining. Strong action this decade is critical to addressing climate change. I know that the people of my electorate expect nothing less than the ambitious action that we need, and I want you to understand that the action we are taking is incredibly ambitious. It will be a huge task to meet the targets we have set. 2030 is only 80 months away—80 months to fully transform how this country gets its energy. It's ambitious. It's important. It will be hard, but it will be done, and this bill is a key part of that work. The government wants this reform to commence on 1 July this year, and any delay will only make that task harder.

I'd like to congratulate the Minister for Climate Change and Energy on his hard work in bringing this bill before the parliament and informing Australians about the work the Albanese government is doing to take climate action. I'd like to congratulate him on his ambition, his openness and the consultative approach he has taken with all people with an interest in climate action, and also on his belief in science as central to this, which is something incredibly refreshing following the last 10 years under the previous government.

I was very proud that one of the first speeches I gave as a member of the government in this 47th Parliament was in support of the Climate Change Act that was passed by this parliament in September. Passing that legislation laid a critical foundation for climate action. An advanced safeguard mechanism is a crucial building block for Australia's long-overdue transition to net zero, a transition that was delayed and denied by the climate Luddites in the coalition for nearly a decade and a transition that is still opposed by many in the opposition—and again I point to the previous contribution from the member for New England.

The Albanese Labor government is now fixing this mess, and this bill today is another important milestone on our journey to net zero, because there is no point in a target without action, and we developed our target after modelling what we could achieve. We have always said this is a floor, not a ceiling, and we want to deliver the best and fastest reduction that we can. Reducing emissions is the action that is desperately needed. We know Australia is one of the world's biggest emitters per capita, but we have natural advantages, and we could be among the lowest.

This bill will reduce emissions by reforming the safeguard mechanism and allowing us to meet our legislated targets. It will require Australia's largest industrial facilities to reduce their emissions gradually and predictably, cutting their baselines by 4.9 per cent each year between 2024 and 2030, in line with our national targets. Australian businesses have seen the future, and many have made strong emissions reduction commitments. We don't want our country to be left behind as the world moves on, following the science. The safeguard mechanism covers around 215 large industrial facilities—those that produce more than 100,000 tons of greenhouse gases a year and account for around 28 per cent of Australia's emissions. About 80 per cent of the safeguard facilities are already covered by corporate net-zero commitments, representing around 86 per cent of scheme emissions. These reforms help them to work towards these targets. The national targets, which I've already mentioned, are to cut emissions to 43 per cent below 2005 levels by 2030 and to net-zero emissions by 2050. These are ambitious targets. The safeguard reforms are expected to save 205 million tonnes of emissions in the period to 2030. To put that in perspective, 205 million tonnes is equivalent to taking two-thirds of Australian cars off the road in the same period.

So to the people of my electorate: I have had many meetings with people about this safeguard mechanism, and I have met with many national stakeholders as well, and I understand the genuine passion that you have for this and the genuine concern that you have that we must take the most ambitious action we can. I just want to put that in perspective. This is a huge change that we are embarking on and that our government is leading. If there is any question about the ambition, in the short time that we have been in government we have made climate change action a huge focus. There is an incredible list of things we have already put in place. I don't want to turn my speech into a list speech, because it would take it all up, but we are really doing our absolute best towards taking the action that we need and making Australia the renewable energy superpower that we can be.

As I say, the targets will not be easy to meet, and it will take deliberate and sustained effort. Our Powering Australia plan will build on the existing safeguard mechanism so that we can make the required cuts. The safeguard mechanism provides an established, legislated framework that will place emissions limits called baselines on large industrial facilities. These facilities are the country's largest emitters outside the electricity sector and contribute about 28 per cent of total emissions. Facilities that beat their baselines will be issued with tradable credits, and these credits will provide an incentive for all facilities to reduce their emissions if they have cost-effective opportunities, helping to deliver Australia's climate targets at lowest cost. This system gives an incentive for all those covered facilities to reduce their emissions and access lowest-cost abatement. These reforms to the safeguard mechanism are supported by business because they will provide certainty into the future and the confidence that industry needs to take action. As I said, it's only 80 months until 2030, and any delay will make it harder to meet our 2030 targets. Delay will create uncertainty for investors and require business to do more in a shorter time to achieve targets.

It's also important to note the support for this bill from industry, because we need to build collaboration. For too long climate action has been undermined by those seeking to create division for their own political advantage. Labor has sought to build support through consultation. We have consulted widely on these reforms, including in industrial roundtables, and have received more than 280 submissions on the design. The Chubb review also concluded that Australia's carbon-crediting scheme arrangements are sound and identified a number of opportunities for improvement. The government has accepted in principle all recommendations and is now working with stakeholders to implement them.

We took our policies and plans to the election and won a strong mandate from the Australian people to take strong climate action. As I've said, the people of Canberra accept nothing less, because they accept the science and they have seen the climate crisis as the lived reality that it is, particularly in the Black Summer bushfires of 2019-20, when our city, which usually has some of the most beautiful air in the world, had the worst and most hazardous air quality in the world for around a month, in about January. We actually went into a form of lockdown. People were wearing masks in the street; this was before we knew about that from the pandemic. Our airport was closed. A lot of our shops and businesses were closed. People with health conditions were told to stay indoors and have air conditioning on or to relocate, which obviously for many people was not an option. So in Canberra we have already experienced the very real impacts of climate change, as, of course, have those in our region who lost homes and businesses and lives in those bushfires. The incredible ecological scale of that will stay with Canberrans forever. I know that it stays with me as a local member who was relatively new at that time. The sentiment from my community will always stay with me.

In the past week, in the non-sitting week, I have had many meetings with constituents who raised concerns about this safeguard mechanism. They want to it be the strongest that it can be. Again, I just want to say that our government is a government led by science. We absolutely are. We are a government that wants to get this done as quickly as possible. We have a minister who has engaged across the board with the environment movement and with business and industry, because it is important to have their support. The climate emergency is Australia's jobs opportunity. That is a positive thing. Perhaps it wasn't emphasised enough in the past. There is still concern around the country about the impacts of climate action. Why wouldn't there be, when a government, for over a decade, told people that this was a bad thing when it was an absolutely urgent thing?

I am so proud that, after three years of calling out for climate action from opposition benches in the last term, that we have a government that is taking it, and taking it with the urgency and ambition it deserves.