Climate and Energy Policy

Climate change is a global challenge requiring sustained and coordinated action at international, national and sub-national levels. CME and its members support the Paris Agreement and its goal of limiting global warming to well below 2 degrees Celsius and pursuing efforts to limit temperature increase to 1.5 degrees Celsius, and accept the scientific consensus as assessed by the Intergovernmental Panel on Climate Change (IPCC).

Australia, as a signatory to the Paris Agreement, must actively contribute to this goal and fulfilment of its Nationally Determined Contributions. CME recognises the Australian Government’s commitment to reduce emissions across the economy to net zero as soon as possible and no later than 2050. As a significant contributor to Westen Australia’s greenhouse gas emissions, CME’s members recognise the need for them to act.

Net Zero

CME advocates for a sustainable development approach for transitioning to net zero emissions and adapting to the effects of climate change; using a holistic framework that balances social, economic and environmental dimensions to ensure climate resilience and a just transition for those affected by change.

To address climate change, unlock investment in new technologies and foster new ways of working, CME will advocate for government-coordinated approaches that:

· Ensure a national framework to achieve climate related objectives in a co-ordinated and efficient manner, providing policy stability and investment certainty for industry;

· Rely on a single, national emissions account that is up to date, transparent and publicly available, with climate-related financial disclosures to enhance informed decision-making regarding risk and opportunity;

· Ensure a transparent carbon price across the whole economy, leveraging existing mechanisms where possible, which promotes lowest cost abatement but includes safeguards to maintain international competitiveness and mitigate the risk of carbon leakage;

· Prioritise planning and investment in common-use infrastructure, such as grid transmission, recognising that shared infrastructure is a critical element of decarbonisation for the mining sector and other sectors of the economy;

· Take a flexible, technology-neutral approach that enables individual companies to take the most optimal route for timely and least-cost emissions abatement, recognising the importance of reducing direct emissions as a priority;

· Create a competitive environment for timely investment in research and development, energy efficiency, technology deployment, low carbon fuels and electricity, emissions reduction, carbon sequestration and adaptation. This includes de-risking novel and emerging technologies;

· Create a mature, liquid and efficient market for verified high integrity domestic offsets for emissions that are hard to abate, and allow for international trade of equally high integrity offsets;

· Ensure wide recognition of the contributions of the resources sector to the global transition towards a low-carbon economy, and recognise Australia’s advantages and strengths through timely supply of in-demand new energy and mineral commodities;

· Progress climate adaptation and resilience, land use, and planning matters at pace;

· Promote a circular economy and its role in mitigating emissions, including through the promotion of secondary markets and the enhancement of resource efficiency, productivity and recycling opportunities.

The CME supports regulatory initiatives, such as robust monitoring, reporting and verification frameworks that specifically support methane emissions reductions for members in relevant sectors, and are complemented by voluntary initiatives to reduce them to near zero.

Energy

The availability of low-emission, reliable, and globally cost-competitive energy is foundational for the decarbonisation of the resources sector, as well as the wider WA economy. It is a critical enabler of globally competitive future industries in WA which will play a key role in supporting global decarbonisation, including

critical and battery minerals, uranium, low-carbon hydrogen and ammonia and green metals, and creates opportunities to further reduce emissions through future process electrification.

The following principles underpin CME’s position on the energy transition:

Low emission – taking advantage of its world-class natural resources, WA should deploy a range of renewable and low-carbon generation and storage technologies to meet demand for clean energy. Generation build-out requires government and industry partnerships to ensure that it is deployed in the right place and at the right time, with incentives in place where necessary to unlock investment.

Reliable – a secure, stable and reliable energy supply must be maintained, supported by a broad and diverse range of high-reliability firming capacity, including gas-fired generation, that provides certainty for large industrial loads and ensures the rapid growth of intermittent renewable generation does not risk system stability.

Globally cost-competitive – transparent and equitable market trading mechanisms and pricing to encourage competition and innovation by new and existing participants, underpinned by efficient deployment of infrastructure, supporting international cost-competitiveness for WA’s resources sector.

Sustainable and equitable – future-proof and fit-for-purpose policy and regulation is required to keep pace with a changing environment. Public investment in developing technology or infrastructure should be coordinated, complement private investment and ensure a fair deal for local communities and Traditional Owners, as well as heavy industrial users.

A whole-of-system approach – effective coordination is crucial to accelerate the deployment of renewable and low-carbon energy capacity and minimise inadvertent and unintended outcomes for the economic growth of the WA resources sector. Effective forward planning is required to ensure an efficient build out of transmission infrastructure, sufficient availability of natural gas for the domestic market and effective demand side response measures.

CME’s climate and energy policy positions will be reviewed periodically including in response to significant changes to the external context.

The Climate and Energy Reference Group is tasked with leading policy development on climate, greenhouse gas emissions and energy-related issues impacting the resources sector.