Internal friction heats up in ALP over renewables

Joel Fitzgibbon and Pat Conroy clash over decision to oppose the expansion of the renewable energy agency’s mandate.

Labor MP Joel Fitzgibbon. Picture: Gary Ramage

Hunter Valley Labor MPs Joel Fitzgibbon and Pat Conroy have clashed over the party’s decision to oppose the expansion of the renewable energy agency’s investment mandate allowing it to fund hydrogen and carbon-capture and storage projects.

Mr Fitzgibbon, the member for Hunter, used a meeting of the Labor caucus to condemn shadow cabinet’s decision to strike out a clause in new government regulations that broaden the investment mandate of ARENA.

The regulations — which had to be rewritten after Labor and the Greens in June vetoed the government’s initial plans — include a provision to invest in carbon-capture and storage and hydrogen made from gas. There is a funding increase of $192.5m under the government’s rules.

Opposition energy spokesman Chris Bowen told caucus that Labor should oppose ARENA being used for anything other than renewables.

The Australian understands the Greens will push an identical motion, while also supporting Labor’s, with at least three out of five crossbenchers also needing to come on board for the regulation to be cancelled.

Mr Fitzgibbon, from the NSW Right, told Labor MPs the decision was “poor policy and poor politics”, arguing the party was in favour of blue hydrogen and carbon-capture and storage.

He said Labor would be “bludgeoned with this in the regions” over the decision, according to party sources.

“Our enemies will portray it as just another example of us being in bed with the Greens,” Mr Fitzgibbon said, according to MPs in the meeting. “It is a message that has been killing us in the bush for years and this will only reinforce it.”

He also said that blue hydrogen, made from gas, could be “part of the transition to green hydrogen”, which is made from renewables.

Mr Conroy, the member for Shortland, shot down Mr Fitzgibbon and declared blue hydrogen should not be viewed as a transition fuel.

“Most overseas markets specifically want green hydrogen,” Mr Conroy said.

Labor MP Pat Conroy in Federal Parliament.

Mr Fitzgibbon and Mr Conroy have been bitterly opposed on how the party needs to position itself on climate change and energy policy since the election following respective swings against them in their coal-heartland seats of 14 per cent and 10 per cent.

Victorian Left senator Kim Carr spoke out in support of Mr Bowen’s position because he believed the government should not try to change the rules via regulation and without a vote in parliament.

West Australian Left senator Louise Pratt, while also supporting the party position, warned MPs the party could not afford to look like it opposed carbon-capture and storage.

In what was interpreted as a swipe at Mr Fitzgibbon, Mr Bowen said Labor could win the argument on its position in the regions if it remained united.

He also vowed the party would not back any motions from the Greens opposing the regulation in its entirety, rather than just the section on funding carbon-capture and storage and blue hydrogen.

Mr Bowen also rejected a claim by Mr Fitzgibbon that the disallowance motion was destined to lose a vote in the Senate.

Energy Minister Angus Taylor said Labor was risking jobs in new industries.

“Getting new, low emissions technologies to economic parity as soon as possible is the only way to reduce emissions without imposing new costs on households, businesses or the economy,” Mr Taylor said. “When it comes to reducing emissions, if it’s not technology it has to be taxes.