Page 612 - Week 03 - Thursday, 15 March 2007
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MR HARGREAVES (Brindabella—Minister for the Territory and Municipal Services, Minister for Housing and Minister for Multicultural Affairs) (12.02): I move:
That this bill be agreed to in principle.
The Electricity (Greenhouse Gas Emissions) Amendment Bill I am presenting to the Assembly today is an example of the government’s responsible approach to addressing climate change on behalf of the people of Canberra. Rising greenhouse emissions pose a significant threat to the social, environmental and economic welfare of ACT citizens, present and future.
The greenhouse gas abatement scheme, GGAS, was established under the Electricity (Greenhouse Gas Emissions) Act 2004 and commenced on 1 January 2005. The scheme is designed to reduce or offset greenhouse gas emissions associated with the production of electricity.
The scheme requires retailers of electricity in the ACT to procure an increasing component of their product each year from cleaner and/or greener sources, thereby effecting large reductions in associated greenhouse gas emissions. In the ACT, electricity use accounts for over 60 per cent of greenhouse gas emissions. Targeting electricity production and consumption is a key step to achieving meaningful greenhouse gas reductions in the ACT. In its first full year of operation, 2005, the scheme reduced ACT greenhouse gas emissions by 316,362 tonnes. This is the equivalent of the annual emissions produced by around 73,570 cars.
The greenhouse gas abatement scheme is the single most effective greenhouse gas abatement measure currently available to the territory and demonstrates how an interjurisdictional emissions trading scheme can work, which can form the model for a national emissions trading scheme in the future. The ACT scheme operates in tandem with New South Wales. It was originally envisaged that both schemes would be interim measures until a national greenhouse emissions trading market was established.
The ACT participates in the interjurisdictional working group, developing a national emissions trading scheme. It has become increasingly clear that early progress on a national emissions trading market is not likely. New South Wales, who also chair the interjurisdictional committee, have accepted that their scheme needs to be continued past 2012. They have recently amended their legislation to extend its effect to 2020, with a provision that the scheme will be terminated once an effective national market is established.
For operational consistency and maintained industry investment certainty, the ACT should also extend its relevant legislation. All ACT electricity retailers also operate in New South Wales and have already adjusted their reporting and purchasing policies to reflect the new time line. This scheme allows the ACT to enjoy sustained greenhouse gas reduction outcomes at minimal cost.
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