Scott Morrison’s energy roadmap to slash emissions

The technology investment roadmap will back new energy-efficient power sources to slice 250 million tonnes of emissions a year.

In a speech at the National Press Club on Tuesday, ­Energy Minister Angus Taylor will set out timelines for new technologies to become more competitive. Picture: Sean Davey.

Scott Morrison’s technology investment roadmap will back new energy-efficient power sources to slice 250 million tonnes of Australia’s emissions a year by 2040 and lay the groundwork for the federal government’s long-term emissions strategy.

The energy blueprint released on Tuesday outlines the nation’s lower-emissions technology priorities and how the government will support emerging energy markets through direct investment and changes to legislative and regulatory frameworks.

In a major pre-budget speech at the National Press Club, ­Energy Minister Angus Taylor will set out clear timelines for new technologies to become more competitive than existing energy sources and support 130,000 jobs over the next decade.

The Morrison government’s five priority emissions technologies — scaled back from a list of more than 140 — are: clean hydro­gen; energy storage; green steel and aluminium; Carbon Capture and Storage; and soil carbon projects.

“They are priorities where government investments can make a difference in reducing costs and improving technology readiness,” Mr Taylor will say.

“Technologies where we, as a government, will not only prioritise our investments but where we will streamline regulation and legislation to encourage investment. Investors will have con­fidence that identified priority technologies are of long-term strategic importance for the ­government.”

Mr Taylor will say the government’s plan was based on outcomes “not ideology” and that getting these “technologies right will strengthen our economy and create jobs”.

“This will significantly reduce global emissions across sectors that emit 45 billion tonnes annually. Australia alone will avoid 250 million tonnes of emissions by 2040,” he will say.

The energy roadmap, featuring input from more than 650 individuals, businesses, researchers and peak bodies, will be used to guide the Coalition’s long-term emissions reduction strategy, which will be unveiled ahead of next year’s UN Climate Change Conference in Glasgow.

A key component of the plan, which follows major announcements on gas and fuel security last week, is the flexibility for governments to shift between technologies through annual reviews of the roadmap.

Mr Taylor has set up a Technology Investment Advisory Council that includes chief scientist Alan Finkel, the chairs of all energy regulators and operators, business leaders Shemara Wikramanayake and Grant King and senior bureaucrats to advise each year on the progress and effectiveness of the low-emissions technology strategy.

While acknowledging mature technologies such as coal, gas, solar and wind will continue to “play an important role” in Australia’s energy future, Mr Taylor will say “emerging and enabling technologies” must be included in the mandates of key government agencies. “Over time, they may become priorities for us or they may drop off all together.

“That is the point of having as many horses in the race as possible and having a pathway for priorities to change.”

The government will invest $18bn in low-emissions technologies through to 2030, with ­co-investment from the private sector and other levels of government expected to drive at least $50bn in new investment across the country.

Mr Taylor will say “in emissions reduction, it is the race for cost-effective low and negative emissions technologies that will strengthen our economy, not weaken it. History has also shown us that you don’t tax your way out of a challenge like this. Let’s be clear — there are only two ways to reduce emissions.

“You either suppress ­emissions-intensive economic ­activities — usually through some version of taxation — or you improve them. There is no third way.

“Australia can’t and shouldn’t damage its economy to reduce emissions.”

Four new long-term targets, reflecting the point at which new technologies become competitive with existing alternative energy technologies, have been set for energy storage (delivering 6-8 hours of storage and including batteries), CCS, low carbon materials and soil carbon.

The technology investment roadmap discussion paper released in May set a long-term goal for hydrogen production of under $2/kg where it becomes competitive in applications including ammonia, transport fuel and firming electricity.

Mr Taylor will say the government would use “four levers” to shake up the energy market with a focus on technologies that will drive down emissions and boost economic growth.

“First, we have an investment lever.

“The roadmap will guide the deployment of the $18bn that will be invested. Following each annual road map, I will direct my agencies to focus on investments in priority technologies.”

“Second, we have a legislative lever that is about flexibility and accountability. We don’t currently have that.

“Our agencies are restricted by legislation and regulation to invest in the new technologies of 2010, not the emerging technologies of 2020.

“Third, we have a regulatory lever that is about enablement. And finally, we have international engagement and collaboration.”

Mr Morrison last week moved to end the Australian Renewable Energy Agency’s strict rules on funding only wind and solar ­projects and announced a $1.9bn budget boost allowing ARENA and the Clean Energy Finance Corporation to invest in new ­technologies including CCS, soil carbon, hydrogen and green steel.

The government has already committed more than $570m to establish an Australian hydrogen industry, including $70.2m announced last week for a regional export hub.