Labor and Greens block ARENA expansion

Labor and the Greens have united to overturn regulations that would have allowed the renewables bank to invest in hydrogen and carbon capture.

Energy Minister Angus Taylor. Picture: NCA NewsWire / Gary Ramage

A fresh climate change battleground has opened after Labor and the Greens united to overturn Morrison government regulations that would have allowed the renewables bank to invest in hydrogen and carbon capture.

The motion to disallow the regulation to expand the investment mandate of the Australian Renewable Energy Agency, pushed by Liberal senator Concetta Fierravanti-Wells, passed without a vote in the Senate on Monday ahead of the chamber being dedicated to the memory of Kimberley Kitching.

Energy Minister Angus Taylor said the government would “revisit the regulation in the immediate future”.

“While the government has not changed its position, the government has withheld calling a division out of respect for the condolence motion for Senator Kitching,” Mr Taylor said.

“The government remains committed to the regulation and the role it plays in supporting the deployment of low emissions technology.

Expanding ARENA’s remit has wide industry support.”

Opposition energy spokesman Chris Bowen said the disallowance was “the latest addition to the climate and energy policy bonfire that started with this government’s election nine years ago”.

“Morrison and Taylor’s efforts to circumvent the parliament with their dodgy ARENA regulation have been disallowed by the Senate,” Mr Bowen said.

“This disallowance was moved by their own Liberal-led committee, vindicating Labor’s fight to protect ARENA from becoming another Angus Taylor slush fund.

“The government has variously tried to abolish, undermine, and repurpose ARENA funding for fossil fuels – while they spend taxpayer money on ads claiming credit for ARENA’s work.

“They have fought against this outcome for a year – and cannot be trusted on climate change and renewables.”

This was the government’s second failed attempt to expand the investment remit of ARENA.

Outgoing Labor MP Joel Fitzgibbon last year blasted Mr Bowen for opposing the changes to ARENA.