Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Clean Energy Finance Corporation Amendment (Carbon Capture and Storage) Bill 2017
Go To First Hit

Bill home page  


Download WordDownload Word


Download PDFDownload PDF

2016-2017

 

 

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 

 

 

HOUSE OF REPRESENTATIVES

 

 

 

CLEAN » « ENERGY » FINANCE CORPORATION AMENDMENT (CARBON CAPTURE AND STORAGE) « BILL » 2017

 

 

 

EXPLANATORY MEMORANDUM

 

 

 

 

 

 

(Circulated by the authority of the

Minister for the Environment and « Energy » , the Hon Josh Frydenberg MP)

 



« CLEAN » « ENERGY » FINANCE CORPORATION AMENDMENT (CARBON CAPTURE AND STORAGE) « BILL » 2017

 

OUTLINE

The « Clean » « Energy » Finance Corporation (the “CEFC”), as established by the « Clean » « Energy » Finance Corporation Act 2012 (the “CEFC Act”), has the objective of facilitating increased flows of finance into the « clean » « energy » sector. The CEFC meets this objective by making investments which attract private sector finance, as well as through working with its strategic co-financing partners to catalyse flows of money into the sector.

The CEFC’s investment function is set out in Part 6 of the CEFC Act. Under Part 6, the CEFC must invest in “ « clean » « energy » technologies” (i.e. « energy » efficiency, low-emission or renewable « energy » technologies) [1] and its investments must be solely or mainly Australian-based. [2] Relevantly, the CEFC must also ensure it does not invest in a “prohibited technology” (i.e. technology for carbon capture and storage, nuclear technology or nuclear power). [3]

The « Clean » « Energy » Finance Corporation Amendment (Carbon Capture and Storage) « Bill » 2017 (the “ « Bill » ”) removes the prohibition on the CEFC investing in carbon capture and storage technologies.

POLICY RATIONALE

Delivering emissions reductions under the Paris Agreement on climate change will be a significant challenge, and will require deployment of a portfolio of low emissions technologies across the world. Advice from the International « Energy » Agency is that carbon capture and storage has an essential role and can support a least-cost transition of the « energy » sector.

Here in Australia, applying carbon capture and storage technology to non-renewable electricity generation would help provide security and stability for the electricity grid while significantly reducing emissions compared to business-as-usual operation of fossil fuel fired generation.

Carbon capture and storage technology can also help reduce emissions from carbon-intensive industrial processes. Some major industrial activities have a large emissions burden from the « energy » and chemical reactions inherent in their production processes. The « Bill » provides a potential support to industrial producers who wish to address such emissions.

FINANCIAL IMPACT STATEMENT

While the « Bill » alters the mix of « clean » « energy » projects the CEFC may invest in, it will not impact the funding available to the CEFC to invest with. The « Bill » does not alter the CEFC’s legislated appropriation or have the effect of actually requiring the CEFC to invest in carbon capture and storage projects. [4] For these reasons the « Bill » has no financial impact.



 

STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS

 

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

« CLEAN » « ENERGY » FINANCE CORPORATION AMENDMENT (CARBON CAPTURE AND STORAGE) « BILL » 2017

 

These Bills are compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 .

 

Overview of the « Bill »

The purpose of the « Bill » is to permit the « Clean » « Energy » Finance Corporation to invest in carbon capture and storage projects.

Human rights implications

The « Bill » does not engage any of the applicable rights or freedoms.

Conclusion

The « Bill » is compatible with human rights as it does not raise any human rights issues.

 

Circulated by the authority of the Minister for the Environment and « Energy » , the Hon Josh Frydenberg MP



 

NOTES ON CLAUSES

Clause 1 - Short title

1.      Clause 1 provides that the short title of the Act is the « Clean » « Energy » Finance Corporation Amendment (Carbon Capture and Storage) Act 2017 .

Clause 2 - Commencement

2.      Clause 2 provides that the Act commences on the day after the « Bill » receives Royal Assent.

Clause 3 - Schedules

3.      Clause 3 is a formal enabling provision specifying that each Act specified in the Schedule to the « Bill is amended as indicated by the Schedule. Schedule 1 then contains the amendments the Act makes to the CEFC Act.

Schedule 1 - Investment in technology for carbon capture and storage

Item 1 - Paragraph 62(a)

4.      Item 1 removes paragraph 62(a) from the CEFC Act. This has the effect of removing the prohibition on the CEFC investing in carbon capture and storage technologies.




[1] Section 60, CEFC Act.

[2] Section 61, CEFC Act.

[3] Section 62, CEFC Act.

[4] All investment decisions are taken independently by the CEFC Board, in line with the other requirements of the CEFC Act as well as the Government-issued CEFC Investment Mandate.