Aug 24, 2008 - 8:00pm
If businesses are serious about achieving a global climate
agreement they should support calls to dedicate a proportion of permit
auction revenue to assist developing countries join the global
low-carbon economy and to help manage the impacts of climate change,
said the Climate Institute today as it released a new report and global
talks in Ghana swing in the balance
report says that at least 10% of the Government’s revenue (potentially
$11 billion dollars up to 2020) generated from the sale of carbon
permits could help leverage the needed investment in new technology in
developing countries to encourage and enable economic growth in tandem
with cuts to carbon pollution.
investment potential in developing countries opens huge export
opportunities for Australian businesses to sell low-emissions technology
and to continue to benefit from the economic growth in our region – if
they are serious about climate action they will support this idea,” said
Climate Institute CEO John Connor.
“It will also
add a fresh Australian negotiating asset in global climate talks which
are swinging between positive ideas and old fashioned stalling from both
developed and developing countries in Ghana’s capital Accra.
developing countries mitigate the unavoidable impacts of climate change
would also help shield us from the financial pain that would inevitably
follow if we instead stood by and allowed their economies, whose growth
has helped ours, to be ravaged by climate change.”
report shows that Australia can build on international momentum to use
guaranteed streams of public funding to help unleash the additional
private clean technology investments.
Australian leadership, public funding can be used to leverage billions
of dollars from high income nations and private investment to be
channelled into developing countries.”
Australian Government says helping to shape a global deal is one of the
three “pillars” of its Climate Change Strategy but the Green Paper is
silent on the issue.
“The lack of any policy
suggestion of investing a small portion of revenues generated from the
auction of carbon permits into regional economies is a gaping hole in
the Carbon Pollution Reduction Scheme Green Paper,” Mr Connor said.
acknowledge that there will, and should be, additional budget
contributions such as the welcome $150 million International Climate
Change Adaptation Initiative, but relying solely on annual budget
allocations will have limited influence at critical international
“As the Prime Minister said last
week, Australia will only be able to help “lead and shape” global
climate negotiations if the international community is convinced we are
taking strong domestic action to reduce its emissions.
Carbon Pollution Reduction Scheme is an opportunity for Australia to
help unleash the scale of clean technology investment needed in our
developing country neighbours but will need strong domestic carbon
pollution reduction targets and guaranteed financing to succeed.”
Members of the EU and others such as Mexico propose similar schemes. A
bill including such a scheme was debated in the US Senate with support
from religious and development groups. In Australia there is support for
use of dedicated revenues from faith, development, union and social
welfare organisations through Make Poverty History and the Southern
Cross Climate Coalition (ACTU, ACOSS, ACF & TCI).