Labor, Greens thwarted on ARENA investment expansion

Labor and the Greens have failed in their push to overturn regulations that broaden the investment remit of the renewable energy agency.

Opposition energy spokesman Chris Bowen on Monday told caucus Labor should oppose ARENA being used for anything other than renewables. Picture: Joel Carrett

Labor and the Greens have failed in their push to overturn regulations that broaden the investment remit of the renewable energy agency.

The disallowance motion pushed in the Senate to strike out a clause in the new regulation was tied at 15 votes each, with One Nation siding with the government in backing taxpayer investment in hydrogen and carbon capture and storage technologies. The Greens on Wednesday night were seeking advice over whether the government acted appropriately in giving One Nation leader Pauline Hanson a pair in support of its position.

Opposition energy spokesman Chris Bowen on Monday told caucus Labor should oppose ARENA being used for anything other than renewables. His position was backed by most Labor MPs but faced opposition from Hunter MP Joel Fitzgibbon, who declared it “poor policy and poor politics”.

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

The regulations are likely to face a legal challenge.

Energy Minister Angus Taylor said the disallowance motion pushed by Labor and the Greens was a “deal to abandon clean tech and blue-collar jobs”. “Under an expanded remit, ARENA is now able to support a broader range of technologies to advance the priorities of the government’s Technology Investment Roadmap,” Mr Taylor said.

“These reforms are about bringing a portfolio of technologies to commercial parity so we can reduce emissions across every sector of the economy, without destroying jobs or imposing taxes or new costs on households, businesses and industry. ARENA will now play a major role in driving investments in the next generation of technologies, including energy efficiency, carbon capture technologies … blue hydrogen (clean hydrogen from gas using CCS), energy storage technologies to back up renewable energy and soil carbon.”

In the caucus on Monday, Mr Fitzgibbon said Labor would be “bludgeoned with this in the regions” over the decision to try and overturn the ARENA regulations. “Our enemies will portray it as just another example of us being in bed with the Greens,” he 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.”

Australian Petroleum Production & Exploration Association chief executive Andrew McConville said the expansion of ARENA was a “win for common sense”. “All technology, including hydrogen and carbon capture and storage (CCS), should be on the table to help reduce emissions.”