E&OE….
Topics: Bureau of Meteorology, renewable energy, Direct Action, climate change, carbon tax
TONY JONES, PRESENTER:
Let's go to Melbourne now. We're joined by the Environment Minister, Greg Hunt.
Thanks for being there.
GREG HUNT, ENVIRONMENT MINISTER:
Pleasure, Tony.
TONY JONES:
First of all, is it true that Tony Abbott tried to set up a taskforce to investigate whether the Bureau of Meteorology had exaggerated estimates of global warming?
GREG HUNT:
Look, the question was raised with my Department by the Department of Prime Minister and Cabinet. I'm honestly not sure of the provenance of that.
My answer was very clear – we have perhaps the best – or one of the best – meteorological organisations in the world. I have full confidence in their data. And the idea was killed at that point.
TONY JONES:
Evidently, the idea was inspired by News Limited reports claiming the Bureau of Meteorology was, quote, “wilfully ignoring evidence which contradicts its own propaganda.”
Now was there any evidence at all as far as you were concerned that the reports of the Bureau of Meteorology were propaganda?
GREG HUNT:
No. And I've had full confidence in what I think is a world class organisation which is based on hard science, hard data, literally millions of points of information through our satellite and our local monitoring.
And I reaffirmed that. And an idea which came to my Department from another Department was killed off.
And frankly, my view was crystal clear – there was no need for such a review because there had already been the periodic normal review which found that their practices were sound, scientific and of the highest calibre.
TONY JONES:
Okay. Briefly, one last question on this: are you relieved to be out of a political environment where, let's say, climate change scepticism was rather persistent?
GREG HUNT:
Look, I respectfully don't accept that background. I've been given support by successive leaders.
I've been able to work tremendously well with Malcolm Turnbull in the past. And only today we met for an extended discussion about the broad direction on the new cities agenda and climate change. He and I share a passion on that.
So I've been fortunate to have a series of supportive leaders. And now we have somebody who has a deep, strong passion for renewables. We share that passion. And I think that that will add additional confidence to the sector.
TONY JONES:
Okay. Given what you just said, another consequence of the switch to Malcolm Turnbull is that both the Clean Energy Finance Corporation and the Australian Renewable Energy Agency have been put under your authority.
Are you going to nurture them or kill them off? Because that was the original plan of the Government.
GREG HUNT:
Well I do want to work constructively with them. And my goal – and I know that the Prime Minister's goal – is to integrate their work so we have the Emissions Reduction Fund working with the Clean Energy Finance Corporation and ARENA, we have the Renewable Energy Target under the Clean Energy Regulator working with the Clean Energy Finance Corporation and ARENA.
And I have already spoken with the chairs of each of those two bodies – and tomorrow I'm due to meet with the chair and one of the board members early in the morning. So, we're right onto early action.
And from here, what is this about?
It's about making sure that we get the best possible mix of emissions reduction technologies and renewable technologies and that as a consequence, we're able to do as much as we possibly can as part of the global task of reducing emissions.
TONY JONES:
So can we put it this way – the war on renewables is now over?
GREG HUNT:
Well, from my perspective, there never was a war on renewable. But what I would say is that we've got a big challenge – to double our renewables in terms of the large scale between now and 2020, and to pretty much double our small-scale solar between now and 2020.
But I think there will be additional confidence – added confidence – about an iron-clad commitment to the Renewable Energy Target which we now have – which not only is my view, it's not only Malcolm Turnbull's view, it's also the Energy Minister Josh Frydenberg's view which he has expressed this week as well.
TONY JONES:
Okay. Alright, we've got a bit of ground to go over, so a couple of quick answers on these ones. Is there a possibility you might lift the ban on the Clean Energy Finance Corporation investing in wind technology?
GREG HUNT:
Sure. So our commitment to the Senate, which certainly holds – which I would never break – was to have the Clean Energy Finance Corporation focus on emerging technologies. That was its purpose and its intention.
We will still work towards it focusing on emerging technologies and innovative actions. One thing that they have just done is put out a new round for solar financing, which I think is a good sign and perfectly appropriate.
TONY JONES:
Okay, but briefly, are you going to lift the ban on wind technology – investments on wind technology?
GREG HUNT:
I don't want to get ahead of myself here because I am going to meet with the chair and a board member tomorrow morning and then we'll have discussions…
TONY JONES:
So you're not philosophically opposed to that possibility?
GREG HUNT:
No, I've never been philosophically opposed to those questions.
It's all about the most effective renewable – but remembering this – that the purpose of the finance corporation – indeed, as Tony Wood said in your introduction – was to focus on emerging technologies.
And certainly I think that's appropriate, fair and reasonable as an investment of taxpayers' funds.
TONY JONES:
Alright. Wind commissioner – is there going to be one?
GREG HUNT:
We made a commitment to the Senate, so we won't breach that.
But it'll be balanced and as I've always said, if communities have concerns – and there are people on both sides of the ledger – there's no harm in giving them access to somebody who can listen to their concerns, to make judgments, to form responses.
But I think it's about a balanced approach to hear all sides of an argument. And we made a commitment to the Senate, so we certainly won't breach that.
TONY JONES:
Okay. Now last year, you asked – in fact you set out terms of reference – for the Climate Change Authority to examine a series of things. And one of the things they're meant to examine is whether an emissions trading scheme is still a good idea. They're going to report to you in November.
Is there any point them doing that? Have you completely made up your mind that emissions trading schemes are out of the question forever?
GREG HUNT:
Well look, our policy has been set and indeed Malcolm Turnbull has reaffirmed it. And he's said that in the Parliament – that we have an approach through the Emissions Reduction Fund which is working, and working well and exceeding expectations.
The design went further than many people had expected and so it's achieving its outcome.
TONY JONES:
Okay we have – fair enough. We have heard that from you.
But you've got half a dozen experts in the authority working on this. You've got one person now travelling the world looking at emissions trading schemes. They're going to report to you. Are they wasting their time?
GREG HUNT:
Look, we'll always consider new evidence and whether or not there are ways of improving our policy. But this Government is committed to an Emissions Reduction Fund, which incidentally, as work comes in from around the world, it shows – wait a minute…
TONY JONES:
Ok, so you…
GREG HUNT:
Wait a minute…
TONY JONES:
No, no, no. I've just got to pick you up on one thing.
GREG HUNT:
No, it shows that the World Bank…
TONY JONES:
You did say there ‘I think’ – that you are prepared to listen to evidence that emissions trading schemes might work. Is that correct?
GREG HUNT:
No. Let me be very clear, crystal clear…
TONY JONES:
That's not correct?
GREG HUNT:
…I'm always prepared to read material. But our policy is set and we are certainly not going to a carbon tax or emissions trading scheme.
TONY JONES:
Alright. Now, have you…
GREG HUNT:
Let me – I did have one thing that I wanted to fit in there.
As people come back from around the world, one of the interesting observations is that the World Bank has adopted what's called a Pilot Auction Facility with remarkable similarities to our Emissions Reduction Fund.
TONY JONES:
Yeah, no – that's understood. So, let me ask you one other thing because of the targets that you've now looking at adopting – up to a 28 per cent cut to emissions by 2030.
GREG HUNT:
Correct.
TONY JONES:
Have you done any modelling on the cost to the budget of the Direct Action component of achieving those much higher targets? Have you done economic modelling on this yet?
GREG HUNT:
Well indeed, Warwick McKibbin has put out extensive modelling.
And what we announced on the day that the targets were presented to the country was that round one of the Emissions Reduction Fund is capped at $2.55 billion, and that after that we would have a capped allocation of $200 million a year out to 2030.
So it's not a trivial sum, but by budgetary – by budgetary standards it’s not unacceptable.
TONY JONES:
That's got to be the cheapest emissions reduction economic target in the entire world?
GREG HUNT:
Well it's – it's working. 47 million tonnes in the first auction…
TONY JONES:
Okay.
GREG HUNT:
…and I expect the second auction will be successful. I don't want to overstate or overegg it, but the early signs are very, very promising.
TONY JONES:
We will – we'll have to wait and see whether that's the case, won't we? We thank you very much for coming to join us.
GREG HUNT:
Thanks a lot, Tony.
(ENDS)