Landmark climate Bill passes Federal Parliament

Insights9 Sept 2022
A landmark climate change bill has been passed by the Federal Parliament. We outline the important amendments made to the draft legislation.

By Meg Lee and Luke Denham

A landmark climate change Bill has been passed by the Federal Parliament, with amendments, following crucial support in the Senate from the Greens, Jacqui Lambie Network and independent senator David Pocock.

Amendments to each Bill from the crossbench in the House of Representatives and the Senate are aimed at improving transparency and accountability, and importing consideration of the social, employment and economic benefits (especially in rural and regional Australia) of federal policies to reduce emissions and any new or adjusted Nationally Determined Contribution (NDC). These amendments are important in ensuring a ‘just transition’.

In our last article, Climate Change Bill 2022: translating Australia’s latest emissions reduction targets into domestic law, we described the operation of the proposed Climate Change Bill 2022 and the associated Climate Change (Consequential Amendments) Bill 2022 which sought to enshrine Australia’s 43% emissions reduction target into domestic law.

The amendments to the Climate Change Bill 2022 since our last article are summarised as follows:

  • At section 3, adding an objective at 3(aa) for the Act to draw from the best available scientific research to inform its response to climate change.
  • At section 10, clarifying that nothing in the Act prevents Australia reducing, by 2030, its emissions further beyond the current NDC target of 43% below 2005 levels.
  • At sections 12(1)(d) and (e), requiring the Minister’s annual statement to have regard to how federal policies have reduced emissions in the particular sectors covered by those policies, and the impact (including the social, employment and economic benefits) of those policies in rural and regional Australia.
  • At section 12(6), requiring written advice given by the Climate Change Authority (CCA) to the Minister (relating to preparation of the Minister’s annual statement) to be tabled in Parliament within 15 business days of that advice.
  • At section 15, adding a sub-section (1A) which requires the CCA’s advice to the Minister in relation to a new or adjusted NDC to include advice on the social, employment, economic benefits and the physical impacts of the new or adjusted NDC, including in rural and regional Australia.
  • At section 15, adding a sub-section (2A) which requires that an adjusted NDC must represent an improvement and that, before any new NDC is communicated by Australia, the CCA has given advice to the Minister and the Minister is satisfied the new NDC needs to be communicated urgently.
  • At section 15, adding a sub-section (3A) which requires that the advice given by the CCA to the Minister must consider the long global average term-temperature goals in Article 2 of the Paris Agreement.

A few minor amendments were also made to the Climate Change (Consequential Amendments) Bill 2022 prior to it being passed, including to require the CCA in performing its functions to have regard to boosting economic, employment and social benefits, including for rural and regional Australia, and to increase eligibility for CCA membership to persons with substantial experience, knowledge or standing in rural and regional development.

It is understood that each Bill is intended to commence this year (the day after royal assent) and that the first annual climate change statement could potentially be tabled in late 2022 or early 2023.

A related and important part of the national plan to meet Australia’s commitments is the amendment to the safeguard mechanism. The technical and design paper on the setting of baselines, use of offsets and how to tailor treatment for emissions-intensive and trade-exposed businesses is open for consultation until the end of September and are proposed to take effect from 1 July 2023. Clients who are subject to the safeguard mechanism should review the paper and make a submission. Please contact us if you require any advice or assistance.

Hall & Wilcox acknowledges the Traditional Custodians of the land, sea and waters on which we work, live and engage. We pay our respects to Elders past, present and emerging.

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