Chris Bowen says government could slap green tariffs on carbon intensive imports whilst stating Australia remains ‘on track' to achieve 2030 renewables target

Sky News AU

2 days ago

Energy and Climate Change Minister Chris Bowen has stated the Albanese government is considering enforcing targeted levies on carbon intensive imports and reiterated Australia was on track to meet its 2030 emission reduction targets despite new figures indicating otherwise.
After Environment Minister Murray Watt controversially decided to approve Woodside's North West Shelf gas project extension until 2070, the government has faced increased scrutiny about its climate and environmental commitments.
Mr Bowen, appearing on the ABC's Insiders program said the government was open to considering new policies if needed to meet its targets, including leveraging targeted tariffs to ensure companies were not offshoring emitting activities and avoiding Australia's climate laws.
The energy minister said the government would have 'more to say' about its plan to impose green tariffs on a range of emission-intensive imports including cement and steel.
Labor launched a review into the practice known as carbon 'leakage' and 'carbon border adjustment mechanisms' (CBAM's) which seek to protect local industry from imports which are not adhering to Australia's emission standards and maintain competition in the energy transition.
The review, which was handed down to Mr Bowen earlier this year indicated that clinker, cement and lime were prone to high leakage levels, whilst ammonia, glass and steel posed a moderate risk.
Despite not publishing the contents of the Jotzo review nor indicating if the government would consider its recommendations, Mr Bowen said that any levies would be specific and that he would not pre-empt the call.
'I urge against sweeping generalisations about policy settings and, you know, what could be the case is obviously we look at particular sectors, first around cement and lime,' he said.
"We have been clear that we want to ensure Australian industry is best placed to compete in a decarbonising world," he said.
"What could be the case is we look at particular sectors first around cement and lime, [which] are places that we looked at in particular, but I'm not going to get in front of the process.
Mr Bowen remained coy on altering liquified natural gas agreements to initiate an east coast gas reservation plan, in a similar vain to that proposed by the Coalition during the recent federal election campaign.
As concern for gas shortages in the coming years increases, Mr Bowen was asked if the government was considering enacting its gas security mechanism to establish an east coast reservation, of which Resources Minister Madeleine King stated in recent days was under review.
'We made clear that there are a number of policies that are up for review,' Mr Bowen said.
'They're coming to their review time and the gas mechanism, the gas code we'll look at those and see what more can be done.'
However, when pressed if Labor was contemplating altering the rules governing the wholesale gas market, Mr Bowen said the government would not modify existing contracts to bolster supply to the east coast.
'No, we have a very clear matter of principle that we don't agree with sovereign risk. We don't agree with retrospective policy actions. I think that is uncontroversial, that is good governance.'
He also remained confidant that Australia would achieve its 2030 target of 82 per cent renewable energy generation, despite numerous industry magnates raising the alarm about the government's renewables timeline and green hydrogen programs.
'We're now at 46 per cent renewables in the last quarter last year and 43 per cent in the first quarter of this year. It moves from quarter to quarter,' Mr Bowen said.
'The 82 per cent target does have challenges. I never suggested it's a linear line.
The federal government will be required in the coming months to legislate it's 2035 emission reduction targets, which will be finalised once the Climate Change Authority, chaired by former NSW Liberal Treasurer Matt Kean hands down it's advice.
With the 2035 target yet to be unveiled, Mr Bowen said the governments approach would be 'ambitious and achievable'.