JIM CHALMERS:
Thanks for coming out here today. Today we hosted the second Treasurer's Investor Roundtable series and this time, we were discussing the vast opportunities of cleaner and cheaper energy in our economy. Around the room today, we had 35 of the nation's leading investors, banks and energy and climate transformation experts. And together, represented around the room today was more than $2 trillion of assets under management. And I invited today, given the centrality of today's discussion or the focus of today's discussion on energy, I invited Ministers Bowen and McAllister to be part of the conversation as well, and I'll throw to them shortly.
We had a really productive conversation today about opportunities for Australia, in the net zero transformation, supporting the growth of sustainable finance, and unlocking the savings for households and businesses through energy performance upgrades as well. And my colleagues might want to add to that in a moment. The most important part of our strategy to grow the Australian economy is grabbing these opportunities for cleaner and cheaper energy. The government and the investment community understand that our prospects in this defining decade will be determined by how we manage and maximise this clean energy transformation. And we know and the investor community knows that working in concert not in conflict, gives us the best chance of grabbing the opportunities that cleaner and cheaper energy presents. This is how we create new jobs and new industries and also leverage our traditional economic strengths. That's what today's Roundtable was all about. It's what the Budget will be all about in May as well. Growing the economy with big coordinated investments in the future of energy and the future of our industries, so that we get broader and deeper industries, so that we can revitalise our regions and so Australia can be one of the biggest beneficiaries of the net zero transformation and not the victim of that transformation.
And today, we are really pleased to be able to enlist the support of such an influential group of investors for some new announcements that we are making today. In my portfolio, to announce that we will be proceeding with green bonds, sovereign green bonds, from next year ‑ working with the investors to design that program. We will also be funding ASIC to crack down on greenwashing more substantially. That is one of the challenges that investors confront in this part of the economy. And thirdly, asking the ASFI organisation, and funding them and resourcing them, to finalise their important work when it comes to investment taxonomies. So that investors like those represented around the room today, can invest with confidence and credibility and clarity, so that they know that the investments that they are making can be easily compared with each other, as they disclose their obligations, their risks, but also the opportunities that they are grabbing. Before I turn to Chris, I just wanted to add my gratitude and my thanks to those institutions, including the banks today but also the the other institutions, super and other big investors, for the way that they have come to the table with commitments of their own to work closely with the government and with the CEFC and with others, to provide the kinds of products and opportunities that Australians and Australian employers and investors desperately need, as we grab the opportunities that come from cleaner and cheaper energy. We'll hear from Chris Bowen and then Jenny McAllister.
CHRIS BOWEN:
Thanks very much, Treasurer. The world's climate emergency is Australia's jobs opportunity but to seize that opportunity we need capital and we need investment. I want to thank the Treasurer for bringing together such senior leaders in Australian business today for this very important Roundtable. Our policy since election has all been about encouraging private sector investment into Australian renewable energy and decarbonisation to make sure Australia keeps up in a global race. After a decade of denial and delay, we've had a lot of catching up to do and we still have an enormous amount of work to do. And this has to be all in ‑ all governments working together, working with the private sector to make sure Australia seizes this opportunity. And that's what this morning's meeting has been all about. Whether it's about passing our Climate Change Act, our Safeguard reforms, our fuel efficiency standards, Rewiring the Nation, it's all about that framework for people to invest in job creation and decarbonisation in Australia. Now, the Treasurer has made some announcements in addition to those, as well as all we've already done ‑ we recognise, the Albanese government ‑ the hunger for Australian families to reduce their own bills and reduce their own carbon emissions. And an important way of doing that is assessing your own home. The NatHERS scheme has existed for some time for new homes, it's been not really catering for existing homes, which is of course the vast majority of Australia's housing stock. So, we're announcing today we're beginning the process of opening up the NatHERS process, of building on the work of Minister Husic and the CSIRO, that important investment in making that possible. And this is important not only for households, but also for banks and financial institutions we heard today because they want to offer more and more green loans and concessional loans to help families on the task they want to embark on to decarbonise, but they need the tools. And the NatHERS assessment is an important part of that tool. So I'm going to ask, obviously, Minister McAllister, to add a little bit more detail. But this is a material step forward today in the government helping Australian families and households, as well as working with business on this important national journey and important journey for so many households.
JENNY McALLISTER:
Thanks, Chris and thanks, Jim. Well, the home is probably the largest purchase that most Australians will ever make. But Australians know more about the energy performance of their washing machine than they generally do about their house. And it means that millions of Australians are paying for energy that is literally leaking out the door. The problem is, of course, that it's been leaking out the door for the last decade, without any action from the previous government. So our government wants to give Australians the tools that they need to make their homes more comfortable, to make them more affordable to run. To give them the tools to make the best choices for their family home. And so since coming to government, we've upgraded the National Construction Code for new builds from six stars to seven stars and we've also started work on a National Energy Performance Strategy. Today, we are pleased to announce a $24.4 million expansion and upgrade to the National House Energy Rating Scheme. It's affectionately known as the NatHERs tool. This tool will provide an individual star rating of homes energy performance. It'll help Australians make the right choices for them and their family when it comes to upgrading the energy performance of their home. We know that many older homes don't meet modern energy efficiency standards, and more reliable information on energy performance will help households know what upgrades are best for them and best for their family. It is, of course, welcome news for lenders. They know that their clients want to make those changes. They want houses that are affordable and sustainable, and this tool will help. And so we're very grateful today for the level of interest and willingness to cooperate from the banking sector. We want to put information into people's hands. And we want to put the banks in a position to offer finance that will take away the up‑front cost.
CHALMERS:
Jenny's going to take any tricky questions, and Chris and I will take the rest, over to you.
JOURNALIST:
Just a question on that scheme. How does that work, I guess on a practical level [inaudible]?
McALLISTER:
We're working through the kinds of [inaudible] At the moment when you build a new home, an assessment is made based on the plans. And the work that we will do over the next couple of years is to establish the arrangements that would allow an assessment to be made in a home. It's a different task, of course, you're working off an existing building rather than plans. And we're looking at what kinds of skills and competencies we need to do that [inaudible].
JOURNALIST:
So the idea then, is that the information will go back to the homeowner to identify what upgrades they might need to make their home more efficient?
McALLISTER:
At this stage, we are looking to build the tool. We know that the states and territories are interested in this [inaudible] The most important thing is to find a way consumers can access information easily and at the moment [inaudible].
CHALMERS:
Before we take questions on any broader issues, I might invite Kristy Graham from ASFI to make a contribution.
KRISTY GRAHAM:
The announcement today that the federal government will co‑fund the development of a sustainable finance taxonomy for Australia, is a significant step and an example of how we can get a lot more done when we work collaboratively between industry and government. The absence of a sustainable finance taxonomy in Australia has been a significant barrier to investment in climate solutions and in clean energy. And the taxonomy will provide a common standard for what is sustainable and transition finance, channelling more capital to support the transition in Australia. The Australian Sustainable Finance Institute warmly welcomes the government's announcement today. And we look forward to working closely with government as we move to the development phase of this foundational piece of the sustainable finance architecture. Bringing together expertise from across climate science, policy and indigenous perspectives, will enable the rapid development of a credible taxonomy that can play this foundational role in the sustainable finance architecture ‑ supporting more capital to flow to support Australia's transition.
JOURNALIST:
Treasurer, on the ASIC crackdown, can you explain a little bit about that crackdown on greenwashing and why that's necessary?
CHALMERS:
One of the things that we're particularly attentive to having consulted widely for some time, but including today, is we want to make sure that the claims that businesses and others make about their investments in cleaner and cheaper energy stack up. And overwhelmingly, obviously, investors and businesses and the community more broadly do the right thing here, but we want to make sure that our corporate watchdog has the ability to crack down on greenwashing where it exists, and the reason for that is because we want investors to have maximum confidence in their investments in cleaner and cheaper energy and all of the industrial and other benefits that that brings. And so in order to do that, we need to get the taxonomy right, which is why Kristy's work is so important. We need to get the regulatory regime right, which is why the ASIC piece is so important and we need to give as many opportunities for people to invest as we can and that's why the green bonds program is so right in addition to all of the important announcements that Jenny and Chris have made today.
JOURNALIST:
Just switching to the Voice for a second. The Opposition is calling for the initial advice presented to Cabinet prior to the work being released. Will the government release that?
CHALMERS:
First of all, the Opposition should know having been in government for the best part of a decade that governments don't release advice to Cabinet ‑ that's an important convention, which is long standing. I think they know that. They are typically just looking for excuses to justify their position on the Voice more broadly. What the Solicitor‑General has made clear today is that the Voice will enhance our democracy, not undermine it and not diminish it. And I think that's a really important conclusion. And when it comes to the Voice, this is Australia's big opportunity to move forward in a spirit of respect and unity. It's all about consultation and recognition, and it's about making sure that when we take decisions that affect our First Nations people that we asked for their view on that ‑ so recognition and consultation, moving forward in a respectful way and in a unified way. I think that is the overwhelming preference of the broader Australian community. I think the Opposition will make their points from time to time. We don't provide Cabinet advice, but we have released today Solicitor‑General advice. The Solicitor‑General makes it abundantly clear that the Voice will enhance our democracy and not diminish it.
JOURNALIST:
Just on the RBA Review from yesterday as well. Some economists have expressed alarm about elements of the potential changes coming from that report saying they will not necessarily improve monetary policy making in Australia. How do you intend to improve it?
CHALMERS:
It's not the overwhelming view of economists. And when this absolutely first‑class Review Panel produced this first‑class Review report, they relied on consultations with more than 1,500 people. And the overwhelming view of economists and experts and people who know about the operation of the Reserve Bank is that the roadmap provided by the Review Panel is the right one, and I welcome the broad support of the Governor of the Reserve Bank, I welcome the express support of the Opposition via the Shadow Treasurer. The Reserve Bank hadn't been reviewed for some decades. It's a crucial institution in our economy. It shouldn't be beyond the kind of reconsideration and thinking that we've seen over the course of the last few months. This is all about learning from the past and learning from international best practice to strengthen the Reserve Bank into the future. The result of the RBA Review that I released yesterday will be a Reserve Bank which is more accountable, more transparent, more effective and more independent, and which relies on more external expertise. And that is overwhelmingly the view of everyone who participated in this process.
JOURNALIST:
Treasurer, just back to the Voice, has your leadership team considered the disturbing possibility of how Australia's international reputation may be damaged by a successful no vote? Is that something that's a worry, do you think, how we are perceived by the rest of the world, given that many countries will just give us a cursory look?
CHALMERS:
Of course, that's a concern to us, primarily we don't want to see Australia miss this opportunity to recognise First Nations people and consult First Nations people, and move forward in a spirit of respect and unity. Of course, the world is watching and when you see the behaviour of some of those who are opposed to the Voice to parliament, they would rather we go backwards in a spirit of division when most of the country wants to go forwards in the spirit of unity. And the world is watching. But primarily, this is about recognising First Nations people, consulting them on issues that affect their lives and their communities, and coming together, I think in grabbing this opportunity, because if we don't grab it now we don't know when we will get another chance. And certainly Australia is in good nick in the global community and we are concerned about what the impact on our international standing would be of a no vote later this year.
JOURNALIST:
Just generally, people are obviously very concerned about cost of living at the moment, will there be measures in the upcoming Budget to help people with their cost of living?
CHALMERS:
The cost‑of‑living pressures in the economy, dealing with them are the highest priority of the Albanese government. And the Budget that I hand down in two and a half weeks' time will make providing some assistance for people to deal with these cost‑of‑living pressures a very high priority. One of the centrepieces of the Budget that we hand down on 9 May will be some assistance with energy bills for example. A big part of the cost‑of‑living pressures that people are confronting is because of the war in Ukraine and what that means for electricity prices here at home. We've been working closely with Chris and Jenny, and with the whole Cabinet and with the states and territories, and our objective there is to take some of the sting out of these high electricity bills, which are making life harder for people right around Australia. So the Budget on 9 May, will be about providing responsible cost‑of‑living relief in an affordable way that doesn't blow the Budget and add to the inflation challenge. It'll be about laying the foundations for future growth in our economy, including in ways that we've been discussing with the investor community today. And it will also be about making us more resilient to these global economic shocks that we're seeing at the moment.
JOURNALIST:
Given the wider representation of the broader Australian community on the new Reserve Bank set‑up, to what extent is that going to supplement the annual budget when it comes to keeping a finger on the pulse of what's impacting Australians from day to day, week to week. Is that precisely why a broader consultation is being introduced?
CHALMERS:
There's a couple of parts to your question, Adam. First of all, we want the Reserve Bank Board, and in time the Reserve Bank boards, to rely on the best possible combination of experience and expertise. And really one of the central themes of the Reserve Bank Review is how do we ensure that the Reserve Bank boards can rely on the best possible external advice and experience and the appointments that I made yesterday were made in that light. Now the Reserve Bank, Governor and board and the Reserve Bank itself takes these decisions independently of the government. But what we want to make sure is that our our job, our part of all of this is making sure that our fiscal policy, the Budget and monetary policy decisions of the Reserve Bank are operating broadly in concert rather than in conflict with each other, and again, that's one of the themes of the report. Now we take seriously our responsibility to represent every part of Australia in the making of our economic policy and we want the Reserve Bank to take a similar approach.
JOURNALIST:
Just one more on the Review, Treasurer. Nick McKim says the Review missed opportunity to develop a holistic approach to economic policy, including the use of taxes and price caps and such. Will you consider this to help manage inflation?
CHALMERS:
That wasn't the task set for the Reserve Bank Review Panel. And I think in the job that we asked Carolyn, Gordon and Renee to do, they've done a really quite an extraordinary job, very effective job and some of the issues that Nick McKim is raising ‑ that's the first I've heard that he has raised those issues but if he's raising those issues, those were outside the scope of the Review. The Review was really all about how do we get the best processes and structures and objectives and people to make these decisions which have such a massive impact on the lives of ordinary people. And they've done a great job providing that roadmap. The government supports in principle all 51 recommendations. Again, I'm grateful for the Governor indicating similarly yesterday and the Opposition indicating their broad support as well. What we will do now is work with the Reserve Bank, work with the other regulators, work with the Parliament, and all interested parties to make sure that we can bed down these recommendations from a really important review by the middle of next year, and I am confident in doing so we will learn the lessons of the recent past, we will rely on world's best practice and we will strengthen the Reserve Bank into the future. Thanks very much.