Ladies and gentlemen,
It's a pleasure to address the 23rd joint conference of the Australia-Taiwan Business Council and the Republic of China-Australia Business Council.
In particular, can I add my own welcome to the delegation led by Mr Edward Chen.
As Minister for Tourism, I hope you'll see as many of our country's attractions as you can during your stay.
Arrivals to Australia from Taiwan have grown strongly in recent times and I am very happy to see they are forecast to increase further in the years ahead.
In the other direction, the number of Australians travelling to Taiwan is also increasing.
As Minister for Tourism, I strongly welcome this growth.
Now turning to my role as Minister for Resources and Energy, I would like to focus on our very important trading relationship.
Ladies and gentlemen, Australia values its role as a reliable supplier of resources and energy to the Asia Pacific region, including Taiwan.
This positive relationship generates many business and investment opportunities for Australia and Taiwan - this is of course very important for the long term sustainability of our economies.
Last Year, Taiwan was Australia's principal export market for copper, second largest market for zinc, and fourth largest market for iron ore, coal and aluminium.
Taiwan's nuclear power sector is supplied by Australian uranium.
As Taiwan imports almost all of its energy, the challenge of energy security for Taiwan is greater than most.
I want to assure you that the Australian Government understands the importance of energy security. In fact - we view it as a defining issue of our time.
Today, I'll set out why Australia has the right approach to energy security, and why Australia will continue to be a valuable trading partner in the Asia Pacific region.
Energy security
To achieve energy security in a lower-carbon economy, we need to:
- Focus on all available options for energy security
- See climate change as an opportunity for energy innovation without picking winners
- Invest now despite the global economic uncertainties
- Enable technologies - such as carbon capture and storage - to give fossil fuels a strong foothold in the carbon-constrained energy mix.
The Australian Government is crafting a sensible, balanced policy framework to bring about a broad suite of viable energy technologies.
Renewable Energy
I recently announced a wide range of initiatives to bolster Australia's expertise in renewable energy.
Earlier this month, I awarded $235 million to four commercial-scale renewable energy projects.
This funding - combined with money from successful applicants - will deliver approximately $810 million in renewable energy investment in Australia.
This includes wave, geothermal, wind, solar, biodiesel and storage technologies.
These projects will bring the Government's three major energy-related goals further within reach:
- Increasing energy security by diversifying energy supplies
- Reducing Australia's greenhouse gas emissions to 60 per cent below 2000 levels by 2050
- And producing 20 per cent of Australia's electricity from renewable sources by 2020.
Geothermal energy has the potential to supply clean baseload power.
If just one per cent of Australia's geothermal energy was extracted, it would provide 26,000 times Australia's total annual energy consumption.
With government backing, renewable energy offers promising business opportunities.
In fact, our modelling projects that Australia's renewable energy sector output will be 30 times larger by 2050.
That's why we are creating the Australian Centre for Renewable Energy.
This Centre (or ACRE as it is also referred to) is a key part of Australia's $4.5 billion Clean Energy Initiative to transition the nation to affordable, low carbon energy technologies.
ACRE will draw together more than $560 million of investment.
To give the market even greater confidence to invest in renewable energy, the Australian Government is committed to a wide-ranging policy framework.
This includes an emissions trading scheme - known in Australia as the Carbon Pollution Reduction Scheme - and the Renewable Energy Target.
The Renewable Energy Target is, in effect, a $20 billion subsidy for the renewable energy industry.
Our aim is to get at least one-fifth of our electricity from renewable sources by 2020.
Regional energy security
Even with the growth of renewable energy, fossil fuels will continue to play an important role in Australia's energy security and economic prosperity.
That's why the Australian Government's $2 billion Carbon Capture and Storage Flagships program is vital.
By reducing the emissions from coal and gas-fired electricity, we consolidate their place in the energy mix of the future.
With demand for coal climbing - not declining in the years ahead - there is great interest in Australia's investment in carbon capture and storage among our trading partners.
Frankly, the global community will be hard-pressed to reach our climate change targets without it - and the International Energy Agency agrees.
Through the Global Carbon Capture and Storage Institute, Australia will be a hub for expertise in making this technology work on a commercial scale.
I would strongly encourage industry organisations and companies from Taiwan to nominate for membership of this Institute.
And I welcome Taiwan's continuing interest in co-operating with Australia on low-emissions coal through visits, conferences and training.
Australians are already demonstrating the potential for carbon capture and storage - with gas.
The huge Gorgon LNG project off the west coast of Australia is giving us a better understanding of carbon capture and storage.
At the same time, developing our LNG industry gives our trading partners a transition fuel for a low-carbon economy.
After all, LNG produces about half the greenhouse gas emissions compared with coal when used for electricity.
Australia's gas reserves exceed 165 trillion cubic feet, and LNG was a $10 billion export industry in 2008-09.
With the additional capacity being brought on with the Pluto and Gorgon projects, exports will be worth approximately $24 billion by 2017-2018.
If the Pluto 2/3, Ichthys, Browse, Sunrise, Prelude, Wheatstone, and Gladstone LNG projects were to proceed by the middle of the next decade, exports could be in the order of $50 billion by 2015-2016.
Conclusion
Ladies and gentlemen, Australia has earned its reputation in the Asia Pacific region as a place to do business.
We have:
- The energy solutions you need
- The investment landscape you seek
- And the visitor attractions you value.
I look forward to further strengthening our trade relationship.
I note the 15th Australia-Taiwan Joint Energy and Minerals Trade, Investment and Cooperation Consultations were held in Brisbane earlier this year.
I encourage the continuation of these consultations which facilitate discussion of latest policy developments and promote further investment opportunities.
Thank you