Bowen Calls for Unity on Net Zero

Bowen confirms gas will remain in Australia’s energy mix, as Labor pushes ahead with six offshore wind zones to expand renewable capacity.

Minister for Climate Change Chris Bowen speaks to the media during a press conference at Parliament House in Canberra, Australia, on March 19, 2024. AAP Image/Mick Tsikas

Energy Minister Chris Bowen has called on the federal Opposition to end political division over climate policy, warning that uncertainty around Australia’s net zero target is deterring investment and undermining the energy transition.

In his first announcement since being re-sworn in on May 14, Bowen said Labor’s election win signalled public support for its renewable energy plan, and urged newly elected Liberal leader Sussan Ley to adopt a more constructive stance.

“Trouble is, it takes two to tango,” he said. “If you’re going to review net zero, I’m sorry, you’re keeping the climate wars going, particularly if you decide to scrap net zero.”

Bowen criticised the Coalition’s pre-election stance, which included promises to scrap four of six declared offshore wind zones, arguing it had created “sovereign risk” and caused delays in major investment decisions.

“We’ve seen offshore wind proponents saying, ‘Let’s wait and see the election result’ before deciding how they want to handle things. That sovereign risk created by Mr Dutton and Mr Littleproud was damaging,” he said.

One such case involved U.S.-based firm BlueFloat Energy, which paused its feasibility licence application in the Illawarra zone, citing political uncertainty. Bowen said he hoped the new Opposition leadership would reverse course, but “the early signs aren’t good.”

Battery Rebates to Cut Costs

Bowen also announced that from July 1, household and commercial battery systems will become significantly cheaper under a rebate scheme introduced as part of Labor’s re-election platform.

He confirmed that battery prices would fall from nearly $9,000 to just over $6,000.

The program will cover battery systems ranging from 5kW to 50kW, designed to suit homes, businesses, and community needs.

“We are already working on implementing that policy, which will come into force on the 1st of July,” Bowen said.

He said the May 3 election result gave Labor a clear mandate to implement its energy policy.

“We went to the Australian people and said we have a carefully designed, appropriate policy with a mix of technologies, including gas backup, transmissions, storage, household, community, and grid-scale, to get to 82 percent renewables by 2030,” he said.

He added that the policy had been central to Labor’s campaign in key marginal seats across the country.

“We were very pleased with the results in those key marginal seats, and we intend to implement the policy we took to the people,” he said.

Gas To Stay In The Mix

Bowen also defended the continued use of gas as a vital part of Australia’s energy mix, citing its flexibility and backup capacity for renewables.

He said unlike a coal or nuclear power station, a gas-fired power station is flexible.

“It can be turned off during the day when we’ve got all these wonderful products working well and it can be turned on if we need to at night and it can be turned off again very quickly,” he said.

He added gas continues to support heavy industry and heats five million Australian homes. With green hydrogen not yet commercial, a steady gas policy remained essential.

“We will continue with our evidence-based policy, carefully calibrated, moderate policy of ensuring that ongoing role for gas in the system and, you know, we’ll continue to review the effectiveness of the policies that we have in place and to do more if necessary,” he said.

Offshore Wind Rollout To Proceed

Bowen reaffirmed Labor’s election promise to deliver six offshore wind zones.

The six declared offshore wind zones include Gippsland (Victoria), the Hunter and Illawarra regions (NSW), the Southern Ocean off Victoria, the Bass Strait off northern Tasmania, and the Indian Ocean off Bunbury in Western Australia.

“We’ll continue to implement the policy, including issuing licences where appropriate within the six zones, in keeping with the plan I outlined pre-election,” he said.

2035 Target To Follow Cabinet Process

On Australia’s updated 2035 emissions reduction target, Bowen said he is awaiting advice from the Climate Change Authority (CCA). Any new goal would be released after Cabinet deliberation.

Preliminary recommendations from the CCA recommend a target of 65-75 percent below 2005 levels by 2035 to stay in line with the Paris Agreement’s 1.5°C goal.

A less ambitious 2°C pathway would require at least a 57 percent cut.

“Most countries around the world haven’t released their 2035 target yet. Of course, people will before COP30,” he said.