Photo of the Hazelwood Power Station in the Latrobe Valley, Victoria Australia.

The Turnbull Government is today releasing terms of reference for its review of climate change policies to be led by the Department of Environment and Energy in 2017. It delivers on a commitment by the Federal Government to undertake a review when it set Australia’s 2030 emissions reduction target. Australia’s approach to climate change policy is to meet our international emissions reduction commitments while at the same time maintaining energy security and affordability. The Government is committed to adopting a non-ideological approach to emissions reduction to ensure we secure the lowest cost of abatement. The Turnbull Government recently ratified the Paris Agreement and has an ambitious and responsible target to reduce emissions by 26 to 28 per cent on 2005 levels by 2030. The target will halve our per capita emissions making it one of the largest reductions in the G20 on that basis. Australia’s effective climate change policies are working. We beat our first Kyoto target by 128 million tonnes and are on track to beat our second Kyoto 2020 target by 78 million tonnes. The Emissions Reduction Fund has successfully conducted four auctions to date securing 178 million tonnes of emissions reductions at an average price of $11.83 per tonne. This is in direct comparison to Labor’s $15.4 billion carbon tax hit, which increased power prices for households and businesses with little emissions reduction. The Government is also committed to a Renewable Energy Target of 23.5 per cent by 2020 which was legislated in the Federal Parliament in 2015. The 2017 review will build on the success of the Government’s approach and ensure policies remain effective in achieving Australia’s 2030 target and Paris Agreement commitments. The review will also build on other important work underway, including the Finkel Review into the reliability and security of the National Electricity Market, and the National Energy Productivity Plan. The Government will consult with business and the community throughout the review and a discussion paper will be released in early 2017 seeking public submissions. Further information on the review can be found via www.environment.gov.au


Review of Climate Change Policies The Government is committed to addressing climate change. Through effective policies, ambitious and responsible targets, and careful management, Australia is playing its role in global efforts to reduce emissions, while maintaining a strong economy and realising the benefits of the transition to a lower emissions future. The Government’s policies are working to reduce Australia’s emissions. They have Australia on track to surpass its 2020 emissions reduction target and provide a framework for the longer term. In setting its 2030 target of reducing emissions to 26-28 per cent below 2005 levels, the Government committed to reviewing its policies during 2017. The review will ensure the Government’s policies remain effective in achieving Australia’s 2030 target and Paris Agreement commitments. The review will look at: • the opportunities and challenges of reducing emissions on a sector-by-sector basis; • the impact of policies on jobs, investment, trade competitiveness, households and regional Australia; • the integration of climate change and energy policy, including the impact of state-based policies on achieving an effective national approach; • the role and operation of the Emissions Reduction Fund and its safeguard mechanism; • complementary policies, including the National Energy Productivity Plan; • the role of research and development and innovation; • the potential role of credible international units in meeting Australia’s emissions targets; and • a potential long-term emissions reduction goal post-2030. The review will involve close engagement with business and the community, beginning with consultation on a discussion paper. The review will monitor and be informed by developments in international climate policy, and include a focus on electricity prices for end users. The review will build on parallel processes, including the Finkel review of the reliability and security of the National Electricity Market, and the work of the Ministerial Forum on Vehicle Emissions. The review will commence in February 2017 and conclude by the end of 2017.

Source THE HON JOSH FRYDENBERG MP Minister for the Environment and Energy