New 30-year plan to guide 'irreversible' energy shift

The Australian Energy Market Operator's plan points to the $12.7 billion worth of investment in transmission projects needed to help power the transition from coal.

A nine-fold increase in grid-scale solar and wind, and a tripling of firming capacity would be required to ensure reliable and affordable energy in the coming decades, as electricity demand surges and coal generators shut down.

Climate Change and Energy Minister Chris Bowen set the stage for the report's release in a speech to the National Press Club on Wednesday.

Mr Bowen revealed the Albanese government would use the first sitting week of the new Federal Parliament to introduce a multi-faceted climate change bill, which will go beyond just legislating its 2030 and 2050 emissions reduction targets.

The minister has extended an olive branch to crossbenchers, declaring he's willing to consider "sensible" additions to Labor's agenda.

Independent ACT Senator David Pocock, whose vote could be crucial for Labor, said he looked forward to working with the new government to ensure its climate targets had "integrity".

The recent east coast energy crisis, which culminated in AEMO's unprecedented temporary suspension of the market, has intensified debate about nation's transition to renewables.

The new roadmap proposes a "true transformation" of the market, calling for levels of investment in energy generation, storage and transmissions which exceed all previous efforts combined.

"Australia is experiencing a complex, rapid and irreversible energy transformation," AEMO chief executive Daniel Westerman said.

The plan singles out five transmission projects which should "progress as soon as possible" to help smooth the transition. The list includes the proposed Marinus Link from Tasmania to the mainland and the HumeLink and New England REZ Transmission Link projects in NSW.

Labor has put transmission infrastructure in the energy plan, promising to invest $20 billion to modernise the grid so it could cope with a massive increase in renewables.

Mr Bowen said he welcomed the release of the roadmap, but added that it was limited because it only covered electricity transmission.

The new minister and his state and territory counterparts earlier this month agreed to develop a "super-charged" plan which would extend to emerging forms of energy such as green hydrogen.

"The best time to start working on it was ten years ago," he said on Wednesday. "The second best time is now. And that's exactly what we are doing."

Mr Bowen revealed a pair of bills to start implementing the government's climate agenda would be introduced when the new parliament sits for the first time late next month.

It will move quickly to deliver on its promise to reduce the upfront cost of electric cars, bringing forward laws to cut tariffs and abolish the fringe benefit tax on some vehicles.

Under a separate climate change bill, the Climate Change Authority would be tasked with assessing progress against the government's 2030 and 2050 targets and advising it on future goals, including for 2035.

The minister would also be required to deliver an annual update in parliament, similar to the yearly Closing the Gap statement.

The bill is shaping up as the first legislative fight of the new term, with Liberal leader Peter Dutton's staunch opposition quashing Labor's hopes of a smooth passage through parliament.

Mr Bowen said the Coalition had rendered itself "irrelevant" in the climate debate through the positions it has taken since the May 21 election defeat, including its advocacy for nuclear energy.

The Coalition's position would mean Labor requires the support of the 12 Greens senators and another crossbencher - such as independent ACT senator David Pocock - to pass the bill through the upper house.

Labor has so far refused to negotiate with the Greens or cede to its demands to halt new coal and gas projects, raising the prospect of a deadlock in parliament.

Mr Bowen on Wednesday reiterated Labor wouldn't accept the Greens' demands.

However, the new minister said he was open to suggestions from crossbenchers.

"If they have ideas, suggestions or amendments which are complementary to the government's agenda, which are sensible additions to our plan, then I am happy to consider them in good faith," Mr Bowen said.

Mr Bowen reiterated that Labor would press ahead with its plans even if it couldn't secure the numbers in parliament to enshrine the targets in law.

The minister warned that not legislating the targets would send a signal to investors that a future government might "walk back" the climate ambitions.

Senator Pocock and Warringah MP Zali Steggall are among the crossbenchers who are pushing for stronger action, but believe Labor's targets are a reasonable starting point.

The two former sports stars believe the government's 43 per cent target should be treated as a floor rather than a ceiling on its ambitions.

Mr Bowen said the 43 per cent aim was "of course not a ceiling", pointing to the wording of a submission to the UN which updated Australia's official climate targets.

The submissions set out the government's hopes that the combined commitments from industries, the states and territories and Australian public would yield "even greater" emissions cuts in the coming decades.

Senator Pocock welcomed Mr Bowen's offer to consider ideas from the crossbench.

The incoming senator said he wanted to ensure Labor's climate targets had "integrity".

"That will require addressing the need for greater integrity in the Emissions Reduction Fund, strong independent advice to government and increased adoption of technologies, from EVs and household goods to clean energy production at scale," he told The Canberra Times.

"We have to ensure that households benefit from the cost savings that come from electrification."

He said the community expected that the targets would be legislated.