Jun 06, 2008 - 8:43am
The independent Climate Institute today welcomed the contributions
from Professor Garnaut and Climate Change Minister Penny Wong that
highlight the importance of broad climate reforms to unlock the
opportunities of a clean energy, low carbon economy. "The speeches from Professor Garnaut
and Minister Wong
mark a welcome return to maturity after a fortnight of petrol price populism," said Climate Institute CEO, John Connor.
“Both Professor Garnaut and Minister Wong emphasised the benefits of
broad coverage of an ETS in terms of the assistance it could give to
those affected and the investment that could be made in clean energy.
“Including transport in the emissions trading scheme (ETS) is important
to any credible long-term plan to reduce emissions.
Excluding it would not only most likely mean higher prices in other
sectors such as electricity, it would also reduce the trading dividend
important to providing the structural adjustment and assistance for
affected businesses and families.”
week, the Climate Institute revealed that removing transport could
reduce the ETS dividend by almost a quarter – between $1.2 and $3.5
billion in 2020 according to previous macro-economic modelling conducted
for the Institute. The Climate Institute reacted more cautiously to
Professor Garnaut’s proposal to set a fixed carbon price for the initial
two years operation of the ETS.
there might be some logic in putting training wheels on the ETS to test
it and better align the ETS with global arrangements post 2012, such a
move would increase the importance of transitional and complimentary
measures – such as clean energy and energy efficiency measures – plus
clear and significant medium term reduction targets.
“Professor Garnaut clearly has this in mind when he referred to a ‘more
demanding mitigation effort from the beginning of 2013’,” added Mr
“If Australia is to help achieve an
effective global climate change deal so clearly in our long term
interests, we need to have real reductions in our still increasing
emissions by 2012 with significant reductions of at least 25 per cent on
our 1990 levels by 2020,’ concluded Mr Connor.
“Long term plans to unlock the opportunities of a clean energy economy
will need tough minded economic reforms, but like the tariff and
competition policy reforms of previous decades, these are needed for
Australia’s long term national interest.”