Woods Megan; Watts SimonHon Dr MEGAN WOODS (Labour—Wigram): I have a series of questions for the Minister. One of the things that I'm keen to hear from the Minister on is that we've heard extensively from the Climate Change Commission around the need for reform of the emissions trading scheme (ETS). It's a work programme that was under way for part of the period that was under review in the annual review but that work programme isn't continuing. I'd like to know what the Minister's plans and time lines are in terms of reform of the ETS. We also heard extensively from the independent Climate Change Commission around their role not only in setting targets but part of their role was in terms of monitoring how the country was tracking towards targets. Of course most of the work that was needed under way to reach emissions budget 1 was work that has happened way before today or at the time of the hearing—that time has passed. We also heard in terms of emissions budget 2 and emissions budget 3 that it's very difficult to introduce new initiatives to achieve savings in those Budget periods and given the hole that has been left in the emissions budgets by the mini-Budget in the year under review—3 megatonnes by the Government Investment in Decarbonising Industry Fund alone in emissions budget 2 4 megatonnes in emissions budget 3 not to mention the cancelling of the Clean Car Discount and other transport initiatives—there's quite a gap there that needs to be made up. Given it is so difficult to put in place those initiatives with enough lead time I think the committee would benefit from hearing what the Minister's plans are to plug those gaps and not wait until the end of the year for him to say We'll give that when we give advice later in the year." when the House needs some indication on that now. Hon SIMON WATTS (Minister of Climate Change): Thank you very much Mr Chair for the opportunity to speak and I'll take the two questions from the member in order. The first aspect that was raised was in regard to the broader emissions trading scheme (ETS) model. I think it's important to recognise that this coalition Government wants to ensure that we have a credible ETS in place in terms of our functioning market and any initiatives that are under way in terms of policy settings by the Government need to enable that that market place is credible. It is right that the Government did cease the review that was undertaken by the prior Government and we are currently looking at the mechanisms and opportunities in regard to ensuring that we can continue to ensure that that ETS market place is robust and credible. We have signalled in our coalition agreement a number of aspects particularly in the forestry space around land use classes. We've been very clear with our position that we don't plan to undertake significant changes within the ETS market place. Our preference is to focus on regulatory reform outside of the ETS that in effect deals with some of the underlying issues. The member will be aware that there are a number of issues that the market has identified around the broader market but it is really important for this coalition Government to provide clear certainty and clarity in terms of what we will do but more importantly what we will not do and that's what we have signalled. There will be an opportunity to provide information around exactly those mechanisms in the months to come and that is a work programme that is currently under way. The second question was in regard to the emissions budgets and the challenges around ensuring that we meet those. Emissions budget 1 is pretty much in order and on track. Emissions budget 2 has risks in regards to delivery and that is something that we are monitoring through. There is with any forecast a degree of flex in regards to where that actually will land. We are monitoring that closely and in addition ensuring that we have good data to inform that. But the overall programme of initiatives in order to ensure that we do meet those targets—which is a commitment of this Government under the Prime Minister's statements commitment No. 9—is in regard to the pathways that will be included in regards to our emissions reduction plan two which we will begin to consult on in June and will finalise at the end of this year. The member is absolutely right that we cannot afford to delay action and implementation that will reduce emissions and while across the House we will agree on the direction of travel in terms of the targets this Government will do delivery differently to the prior Government. But we will be clear and transparent around the pathway for those options what those emissions reductions will achieve and the time line around that because I think it is important to ensure that we have a credible and transparent plan of pathways that enables us to decarbonise at the appropriate rate."