AgZero2030 The Power Shift – Transitioning Farm Communities to Renewables

The Hon Senator Sue Lines

President of the Senate

AgZero2030 The Power Shift – Transitioning Farm Communities to Renewables

Thursday 20 June 2024

Speech

Thank you for inviting me to speak at your inaugural forum.

I would like to acknowledge that we are meeting on Whadjuk Noongar boodja and I acknowledge the traditional owners and elders, past, present and emerging, of these lands, and all First Nations people here today.

I’m delighted to join you here as I have followed the development of AgZero2030 since your early stages. Many of you in the audience have welcomed me and my team to your homes and farms, including:

Cindy Stevens and Simon Wallwork in Corrigin
Christie Kingstonin Goomalling
Wayne Pechat North Stirling Downs
Philip Gardiner at Edale Merino Stud, and
DorothyHenderson near Esperance

During the early stages of Covid, when we could travel between regions but not outside WA, my team and I decided to get out on the road and meet people and communities we wouldn’t normally have the time to visit.

Sue Middleton was my connection into the AgZero2030 community, and you were all so open to a city-based Senator coming out to the regions.

Many told me that I was the first senator to visit your town or region in a long time, if ever.

I have learned a lot from my visits, and it’s given me a deeper appreciation and understanding of what life is like for families and communities living and working in the primary industries sector.

I have valued the knowledge you have shared with me about your work and lives that I have been able to in turn share with both my State and Federal colleagues.

I congratulate you for bringing together such a diverse collection of speakers and attendees, and I am sure that the conversations had today will lead to new connections and actions across your sector.

I would also like to recognise the advocacy of AgZero2030 during last year’s Voice to Parliament campaign.

Despite the devastating referendum result, it is important to acknowledge that the leadership of organisations like yours in the regions was significant in demonstrating that there was support for, and an eagerness to work with, First Nations people and communities during that difficult time and into the future.

Today you have invited me to speak about the Federal Labor Government’s vision for the energy transition in the regions - what we have already actioned and what is still on the agenda.

At the core of this is the government’s Net Zero Plan, based on our membership of the Paris Agreement, which has led to the creation of the Net Zero Economy Agency, established 1 July 2023.

The Agency promotes positive economic transformation, provides advice to government and leads design on legislation to establish the future Net Zero Economy Authority.

This legislated authority will promote net zero economic transformations for six sectors:

Electricity and energy
Transport
Industry
Agriculture and land
Resources, and
the built environment

Last year the Federal Government released a consultation paper on our Agriculture and Land Sectoral Plan, to which I know AgZero2030 made a submission - one of 230 from across Australia.

Your submission called for ambitious but necessary actions and support for the agricultural sector in progressing climate solutions. These included:

Increasing knowledge and literacy levels ofdecarbonisation through outreach and engagement,
the importance oflocal governments and the land use planning system playing a part in sector decisions around land use for regulations such as the Safeguard mechanism,
economic and financial criteriagoing hand in hand with research, innovation and adoption of climate actions to encourage faster decarbonisation, and
government and private sector support for the adoption ofemerging technologies by agricultural communities.

I know that AgZero2030 has been working since its inception to build the knowledge and acceptance of climate-conscious farming practices across WA.

This is a particularly critical role you are playing within the sector, some of whom are understandably still hesitant about changing the practices and habits of many generations.

This is why the Federal Government is prioritising engagement with sector leaders in our Agriculture and Land Sector Plan.

Minister for Climate Change and Energy Chris Bowen is spearheading the federal approach to develop the six sector plans to help inform the 2035 emissions reduction targets to be set in the next eight months.

The idea for this approach came not from government but the private sector who have called for transparency and consistency in what will be our biggest economic transformation since the Industrial Revolution.

Minister Bowen is working with multiple other Federal Government ministers, including Ministers Murray Watt, Tanya Plibersek, Catherine King, Ed Husic, and Madeleine King on their respective plans.

He spoke just last month at a sustainable agriculture summit in Toowoomba, saying that the wide range of submissions to the Agriculture and Land consultation paper proposed novel and good ideas, providing food for thought on the challenges and opportunities in agricultural decarbonisation.

The Federal Government’s Agriculture and Land plan, in which the government has invested $63.8 million in the most recent Budget to support initial emissions reduction efforts, is underpinned by three key principles.

First, agricultural decarbonisation must be achieved with the sector, not imposed on the sector.

The Federal Government is working and will continue to work with your sector to talk about policies, incentives, opportunities, and challenges.

This process won’t be about imposing arbitrary sector-wide targets or top-down approaches.

Second, action on climate change is necessary to ensure food security, and action on climate change won’t come at the expense of food security.

Climate change is undeniably a risk to global farm productivity and food security, however the policies we put in place will protect and enhance food security, not endanger it.

Third, the agricultural and land sector will not be taken for granted to do the heavy lifting to offset emissions from other sectors that carry on with business as usual.

The importance of these three principles was made clear in AgZero2030’s submission to the consultation paper.

Working with the agriculture and land sector, this action will improve Australia’s position as a global supplier of sustainable food and fibre.

It will support the agriculture sector to meet expectations from supply chains, export and capital markets, and consumers around emissions.

Additionally, it will build farm and landscape resilience through carbon storage and accelerate adoption of renewable energy for on-farm use.

Australia has long been known for its rich agricultural heritage.

Our farms and farmers have not only fed our nation but have also played a significant role in the global food supply.

However, your sector is now at a crossroads, facing the dual challenges of climate change and the need to transition towards more sustainable practices.

As Agriculture Minister Murray Watt told the Toowoomba Summit in May, the truth is that farmers and Australians living in rural and regional Australia face more severe impacts of climate change.

And without intervention, things will get worse. It is already costing our farmers every single day.

The gross value of Australian farms, fisheries and forestry sector is now $90.8 billion, the third highest on record.

However, the Australian Bureau of Agricultural and Resource Economics has conservatively estimated that on average farmers have lost more than $30,000 per annum due to climate change over the last 20 years, with that figure expected to rise.

And the recent Ag2050 Scenario report by the CSIRO highlighted the need for industry to adapt to climate change to continue its growth trajectory.

The more productive the industry is, the more profitable it will be in the long run.

As demonstrated by our ongoing engagement with the sector nationally, the federal government has recognized the importance of addressing these challenges head-on and a series of ambitious policies and initiatives have been introduced to support decarbonisation and electrification within the agricultural sector.

Firstly, let's talk about decarbonisation. Agriculture is a significant contributor to Australia's greenhouse gas emissions, accounting for around 18 percent of the total, and therefore will play a vital role in our decarbonisation.

To reduce these emissions, the government has set a target to achieve net-zero emissions by 2050, by putting the key pillars in place over the past two years.

As I’ve already said, AgZero2030 has always impressed upon me the importance of investing in innovation, research and development to ensure meaningful emissions reduction from the agriculturesector.

Improved coordination and collaboration between the sector, government and research stakeholders will increase the likelihood of achieving important R&D outcomes, and at a faster rate.

Therefore, the Albanese Government has committed in our recently announced Budget:

$4.4 million over 10 years for the Department of Agriculture, Fisheries and Forestry to become a formal partner in the Zero Net Emissions Agriculture Cooperative Research Centre.
Allocated $30.8 million over 4 years to the existing Carbon Farming Outreach Program toestablish a knowledge bank combining existing training and climate smart farms’ agenda for farmers to access, also providing grants for R&D Corporations to advise producers how to access information on implementing low emissions solutions.
An investment of $28.7 million over 4 yearsto enhance the National Greenhouse Accounts methods and data collection processes so that greenhouse gas accounting in the ag and land sector can have set standards and benchmarks.

These Budget commitments are not the end of our investment, but a very important start.

By investing in R&D collaborations, building on-farm capacity and injecting integrity into our carbon measurement techniques, we are laying the building blocks for further action through the forthcoming Ag & Land Sector Plan.

Australia’s carbon crediting scheme, the Australian Carbon Credit Unit Scheme, will continue to support our emissions reduction efforts and support projects that create jobs and new sources of farm income.

In this year’s Budget we allocated almost $50 million to continue the ACCU Scheme reforms, strengthening the scheme’s administration and enabling the new Carbon Abatement Integrity Committee to deliver on the Chubb Review vision.

That includes delivering on the Review recommendation to bring forward more innovative ways to reduce emissions through the ACCU Scheme, including implementing the new proponent-led method development process.

This means methods will be developed by individuals and organisations outside of our government.

Submissions are open for the first proposals to support the development of new methods under this model and any interested individual, group or organisation can now submit a method proposal for consideration.

So if you are interested, I encourage you to make a submission.

Low-carbon liquid fuels will also be critical, such as renewable diesel for farm vehicles as well as heavy transport, and sustainable aviation fuels for air travel.

It is an important part of the decarbonisation agenda.

The Federal Government has put $20 million towards developing certification for these cleaner fuels through the Guarantee of Origin Scheme.

It will make it much easier for you to prove the emissions reduction credentials of using those fuels in your businesses.

We also know there’s more to be done on low carbon liquid fuels around commercialisation and incentivising production and demand.

Part of the work that needs to be done now is balancing different needs in this process – demand for feedstocks to produce these fuels impact on land use decisions. Food security, fuel security and carbon sequestration are all necessary. But we are going to need a high degree of collaboration and consultation to ensure we get the balance of these needs right.

Renewable energy and agriculture are areas in which we are seeing more cross over, with rural and remote communities playing a key role in the transition of the electricity sector, underpinning global and domestic net-zero goals.

There is growing interest and discussion about how renewables interact with the food and fibre industries in the agriculture sector.

Minister Bowen spoke at the Toowoomba Summit about the necessity of continuing to improve our understanding of the impact of new generation projects on landholders and communities.

That is why we are implementing the Dyer Review on community engagement, with $20.7 million in the 2024-25 budget.

We will work through the land use issues together – government, industry, communities, and this approach can potentially present big opportunities as well.

We have heard from a broad cross section of people on this and recognise while the footprint of land required for new energy infrastructure is minimal, the impacts are real.

The Dyer report highlights this and we’re seeing more work now on how agriculture and energy can co-locate very successfully.

Some 97% of land under onshore wind farms is either grazed or cropped.

There are many cases of the benefits of co-locating solar farms with animal grazing.

The nation’s largest solar farm in Uralla, New South Wales, has a nameplate capacity of 720 MW, and is expected to accommodate over 6,000 sheep.

The shade from panels helps with the impact of severe weather on their flock.

Multiple reports have shown that the shade from solar panels can increase water efficiency and create microclimates that extend growing seasons.

Renewable energy projects can also provide an additional stream of drought resistant income for landholders.

On the topic of drought, the Federal Government has committed $519 million over the next 8 years to ensure rural and regional communities have what they need to plan for future drought.

The government is supporting farmers to be drought ready by investing in well-planned and funded initiatives that help them become more resilient to the shocks of climate change, through the Future Drought Fund.

There is a lot of good work happening on the ground across the country, and this further funding will improve the operation of the FDF and build on its momentum to work with farmers on the frontline of climate change.

The Federal Government is also partnering with the WA Government to fund 9 regional WA projects under the National Water Grid Fund.

These projects include solar powered desalination plants, the Southern Forests Irrigation Scheme, the WA Connections package of $43.8 million to upgrade water storage capacity, new water recycling systems, and replacing existing pipelines.

As we respond and act to prevent the worst impacts of climate change by reducing emissions, there’s huge economic opportunity to be had, especially in the regions.

I’d also like to talk today about the Federal Government’s Nature Positive Australia Plan, led by Tanya Plibersek, Minister for the Environment and Water.

Our Nature Positive Plan was our response to the most recent 10-yearly Independent Review of the Environment Protection and Biodiversity Conservation Act 1999, released in January 2021.

One of the first stages of the Nature Positive Plan was the establishment of the world’s first Nature Repair Market last year.

This scheme is incentivising actions to restore and protect the environment, encouraging nature positive land management practices that deliver improved biodiversity outcomes.

The scheme establishes a marketplace where individuals and organisations can undertake nature repair projects to generate a tradable certificate.

Farmers, First Nations people and organisations, and regional communities can take part in the market.

This will enable farmers and others in the agricultural sector to be rewarded for the work they have undertaken for generations as the stewards of more than half of Australia’s landmass.

The second stage of the Plan was announced by Minister Plibersek in April – the first national independent Environment Protection Agency.

The legislation establishing this new agency was introduced to the Parliament in May and will create consistency across the Federal system, providing farmers with more clarity on how they can manage their land using best practices.

It has been greeted across all sectors as a well-overdue reform.

We have also announced a new body called Environment Information Australia which will give businesses easier access to the latest environmental data, release State of the Environment reports every two years, and report on progress on national environmental goals.

Our government is determined to work with Australia’s world-class agricultural industry to adapt to our rapidly changing environment.

The plans we are putting in place together must chart a way forward. We might not always agree with each other, and I acknowledge that.

But we must commit to listen to each other’s point of view.

Because what is at stake is the future of our children and grandchildren and the environment they will inherit from us.

As I have mentioned, there have been several reviews across the climate change, energy, and agriculture sectors in the last few years. We are now implementing the recommendations from those reviews.

Our government is putting these actions in place so that all sectors are provided with the certainty to be able to plan for the inevitable transition to cleaner, renewable energy sources.

We know that the agricultural and land sector are already being impacted by a changing climate.

Surely, we are beyond the climate change wars. It is a shame that we cannot have a bipartisan approach on this. But it is what it is.

The only way to ensure that we tackle these extreme challenges together is by making sure that everyone can be prepared for what is ahead.

That is what our Government is prioritising and I’m keen to hear your views about how we can work together to realise this future.

Thank you.