PM: Good morning. It's good to be here with Penny Wong, the Minister for Climate Change. Out here at this particular plant run by (inaudible) energy. They are one of China's most significant power generation companies.
Overnight we have seen produced on the question of climate change, a new report by the international panel on climate change. It specifically goes to the impact on the world's water resources as a result of climate change. There is a chapter in it dealing with Australia.
Two or three points to emerge from that climate change report on Australia are as follows.
It says that for Australia ongoing water security problems are very likely to increase by 2030 in Southern and Eastern Australia. Furthermore there are likely to be alterations in the geographic range in seasonality, with some mosquito borne infectious diseases, e.g Ross River disease, dengue and malaria. And furthermore, large shifts of the geographical distribution of agriculture and its services are very likely.
That in summary is what the International Panel on Climate Change report has had to say overnight. And that report, I understand, is on their website.
Which brings into sharp focus that which we are seeking to do here, in China through our bilateral cooperation with the Chinese Government on the overall challenge of climate change. Climate change is a challenge for the world. It is a challenge for China. It is a challenge for Australia.
And as Australia is the world's largest coal exporting country, China is the world's largest coal consuming country, we have a particular responsibility to ensure that we advance the overall technical and commercial challenge of clean coal. That is why in particular, we are here. And I would like to pay tribute in particular to the cooperation which has occurred between the CSIRO in Australia, the Huaneng Group and the Thermal Power Research Institute.
The Huaneng, as a Chinese power company, represents about 10 per cent of China's total electricity generation, I am advised. Here today we are visiting a plant in Beijing which generates 800 mega watts. Altogether, Huaneng itself nationwide, I am advised generates something like 72,000 mega watts. And that in turn, represents some ten per cent of China's total electricity production, from all sources. Huaneng being one of five companies.
Within the Huaneng group, what we have looked at today in terms of this CSIRO project is the one and only project when it comes to post carbon capture technology. And I would congratulate the participants for so doing.
It is important. But we need to put it into context. It is a small start, because what we have here is a piece of technology which is producing PCC (Post Carbon Capture) for some 3000 tonnes Co2 equivalent each year. That represents something in the vicinity of one to two percent in the total production of one plant.
I am putting all this into context for you because this is a very small start, but it is an important start. In Australia, of course, CSIRO is engaging in other such projects. Three are on the drawing board. One in the Hunter, one in La Trobe Valley, one in Central Queensland. And this one in China of course, represents a fourth. It is important work for the future.
In addition to this project, what I would like to do today is also to announce three new projects, that are to be funded by the Australian Government.
Firstly, a feasibility study into the development of the largest solar city in the world, at Weihai in the North East of China.
Secondly, a pilot project applying Australian national carbon accounting systems at the provincial level in Australia, sorry, in China. That's Australian technology being applied at the provincial level here in China.
And thirdly, a trial of the Australian river health monitoring systems in the Yellow River, the Pearl River Basin and the Darling River.
This represents a fresh investment of some $20 million dollars in our bilateral cooperation arrangements with China. They are all pointing in the one direction which is how do we cooperate more effectively at the technical level with China on the overall challenge of Climate Change.
On the detail of these projects I will turn to the Minister for Climate Change in a minute to add to my remarks. I would conclude just by saying this, we in Australia must collaborate absolutely closely with China on the Climate change challenge. That is why it forms such a significant feature of my discussions with Premier Wen Jiabao yesterday, that is why we issued a joint statement on climate change. That is why we have now agreed for the first time to have ministerial level dialogue on climate change. For Australia, from a national interest point of view, it is also important because what we want to do is work with China to produce a better outcome globally on climate change. Critical for the planet. Critical long term in terms of the impact of climate change in our country as well, going back to the International Panel on Climate Change report on water just before.
And finally, also critical for Australian business. We have to do this work in order to underpin Australia's long term carbon sales in the future, our coal exports to the rest of the world. But also, open up fresh business opportunities for those businesses and threshold businesses, venture capital businesses, on the threshold of some of these new technologies, renewable energy technologies, clean coal technologies, energy efficiency technologies, to improve our overall national effort in the climate change space. Good for Australian business, good for our work on climate change, good therefore for the planet.
If I could turn to Penny to add to what I have said.
PENNY WONG: Thank you very much Prime Minister and it is good to be here at Gaobeidian, where the Australian Government is funding approximately $4 million towards the post combustion carbon capture and storage technology which is being piloted here.
And one of the things we do know, very clearly and anyone who was in Bali and anyone who was following the international negotiations subsequently will know this, we know that there is no comprehensive global agreement to tackle climate change unless China is closely engaged with the climate change issue.
We also know Australia, is a country that is vulnerable to climate change and we have a significant economic stake in ensuring that there is an effective global response. So engagement with China is key, it is critical and we are very pleased that the Chinese Government has agreed to the statement the Prime Minister has outlined including the ministerial dialogue.
We know that the dimension of the challenge is enormous. We know that China's energy capacity is growing at very high levels every year and a great deal of that is being powered through coal fired power stations. We know also that Australia as the world's largest exporter in coal, has an enormous economic stake in ensuring that there is a clean coal future, a lower carbon future for the coal industry.
That is critical for us and that is critical for China so it is logical that we would work together on these issues.
The three new projects that the Prime Minister has announced today really build on Australia - China climate change cooperation. Really build on the partnership that exists and that we are seeking to deepen and strengthen. The three projects are first, a feasibility study into the development of a solar city in Weihai. There is a feasibility study funding from the Australian Government to look at making Weihai a solar city.
I want to talk particularly about the project involving Australia's national carbon accounting system. This is not just a technical scientific issue. If you want to manage something, you have to measure it. That is something business understands. And we in Australia actually have one of the most advanced and significant technical capacities to measure carbon emissions in the world. That is a critical issue for China because as China seeks to take a sustainable development path, it obviously needs to know where its emissions are coming from as the first step in managing them.
So we are very pleased that the pilot project, in relation to the national carbon accounting system will be applied in individual areas of China. This is a large country, but as I said, if you are going to manage something you have to measure it. We are very pleased to cooperate with the Chinese Government in relation to this technology.
PM: Over to you folks.
JOURNALIST: (inaudible)
PM: I have seen those reports. I have not seen a full Australian report on them yet. The first responsibility which we the Australian Government have is to take whatever practical steps are necessary to ensure the safety and security of our athletes. On this most recent report concerning this terrorist group (inaudible), our security authorities are now in close contact with the Chinese security authorities.
Subsequent to that we will be in close contact also with the Australian Olympic Committee. Our bottom line is this, every practical measure must be taken to ensure the safety of Australian athletes. That is why we will be taking these matters very seriously.
JOURNALIST: (inaudible)
PM: I think the challenge for all of us globally is to tackle greenhouse gas emissions whether we are developed or developing countries. And what I have been saying in Washington and Brussels and London and here is that we share a combined global responsibility for doing that and at multiple levels.
On the demand side, and improving the efficiency of various demand side management systems across the world. But also, when you are dealing with the supply side, renewable energies, investment in solar, this in part deals with that. Investment in other renewable energies and also what we do when it comes to coal. And that is why there is a concentration in our efforts on improving clean coal technologies. But everyone in the world has a responsibility to act to bring down greenhouse gas emissions over time.
Unless we do that, can I just go back to this alarming report, produced by the International Panel on Climate Change overnight, concerning the impact in Australia on water.
We are already the world's driest continent. The impact of climate change therefore for us, and for agriculture, is significant. We have a national self interest, as well as a global responsibility to act in this space and that is why Penny is active globally. That is why it has formed a large part of my activities since I have been abroad for the last period of time.
JOURNALIST: (inaudible)
PM: AP 6 is an important forum for continued technical cooperation. It is part of the overall response, credible response to climate change. I keep saying, we need a global arrangement on the overall target in terms of greenhouse gas emissions.
And secondly, we need to be cooperating on the technology platforms, capable of delivering that outcome. And then thirdly, having a carbon market which sets the price in order to make it possible for various of those technologies to be applied. I might turn to Penny on the particular AP 6 question.
PENNY WONG: Can I say, I think the focus on technology is very important for the relationship with China. The ways in which that might be done, we obviously, there are still issues the Government will need to consider through in the months to come. We obviously have now a clear Government to Government agreement that the Prime Minister and Premier Wen Jiabao signed off and announced yesterday. We do recognise as a Government that a particular interest of the developing nations, particularly China, is technological cooperation. And that is the logic behind the three projects today which are adding to the climate change partnership relationship with China. So technology is a key issue. It goes back to the question Paul Bongiorno, I think asked about the future for China.
But the challenge for the world and for China is to find a low emission development path. Technology such as what we are trialling here, obviously plays a very significant part in that.
JOURNALIST: (inaudible)
PM: Together with other members of the international community, I do have concerns about the level of cooperation on the part of the Government of Pakistan in the overall effort against terrorism in Afghanistan, both in relation to the Taliban and in relation to Al Qaeda. And it is for that reason that I am meeting with President Musharruf. I want to explore with him further practical ways in which Pakistan can assist and contribute to the campaign in the war against terrorism in Afghanistan.
We have more than 1000 troops, Australian troops on the ground in Afghanistan. In Bucharest, the discussion in part dealt with our development as participating states, within ISAF of an integrated civilian and military strategy to deal with the Taliban and Al Qaeda within the country. But, that strategy is incomplete unless we have the full cooperation of surrounding states including Pakistan. And that in part is why I am seeing President Musharruf today.
Hang on, can you put your hand out please rather than just shout out. There, there and there, just so I can get, people have been putting their hands up over here.
JOURNALIST: Mr Rudd this is on another issue, there is...
PM: Oh, sorry I will come back to you. I thought this was all on Pakistan, your on Pakistan?
JOURNALIST: Yes.
PM: Sorry (inaudible). I will come back to you.
JOURNALIST: (inaudible)
PM: Well, since becoming Prime Minister, this is the first opportunity I have had to engage with Mr Musharruf. I am looking forward to the opportunity of doing so. We have a range of bilateral interests also in Pakistan, the Government of Islamabad. But on specifically, on the cooperation on terrorism as it relates to the Taliban and Al Qaeda, I will be seeking to engage President Musharruf on what Pakistan can do more to underpin the efforts of the United States and its allies in Afghanistan, in what is a difficult and protracted war.
I understand fully the complexities which currently exist within Pakistan's domestic policies. I understand the difficulties and complexities which that presents. Nonetheless, I believe I have got a responsibility to engage directly on these questions, in that direction.
JOURNALIST: (inaudible)
PM: First of all, I won't go into the absolute detail of the discussion. But broadly can I say this, Pakistan at many levels, since September 11 has cooperated and has cooperated significantly with what has become the ISAF countries' operation in Afghanistan. However, that cooperation, particularly on the question of the cross border flow of Taliban and Al Qaeda operatives could be significantly enhanced and I am concerned at the extent to which in recent times, in recent months that, that cooperation has become less than it could otherwise be.
So let's just, this is not a black or white situation. There has been significant contribution by our friends in Pakistan over time, but we believe that in recent times it could have been more. We want that to be better, that is why I together with other heads of Government, are engaging with the Pakistanis on this question.
JOURNALIST: (inaudible)
PM: Look I am confident the pandas will be safely and effectively delivered to Australia. We will be in contact with our friends in China to make sure that the necessary funding arrangements are put in place.
JOURNALIST: (Inaudible)
PM: I am confident that pandas, anyone know the names of the pandas, was it Biongwan and Buehain is it?
JOURNALIST: No, I made that up.
PM: The two pandas, whose names escape me, will enjoy a happy sojourn in Australia and the practical arrangements to be put in place on that, we will sort out with the Chinese. Anything else? Good one, thanks.