Jun 25, 2012 - 11:30pm
The CEO of The Climate Institute, Mr John Connor, today welcomed the
release of Professor Ross Garnaut’s discussion paper on carbon emission
Mr Connor said that Professor Garnaut’s
discussion paper has highlighted that securing a global climate deal
that is in the nation’s interest requires Australia to implement an
effective domestic trading scheme.
“This is a straight forward - and potentially effective - model,” Mr Connor said.
are many positive initiatives outlined in the proposal – including
recommendations to separate auctioning and operation, from adjustment
assistance to affected families, workers and business.
“It is clear that the government will generate a multi-billion dollar revenue stream from emission trading.
Professor Garnaut recognises that helping low income communities into
the low carbon economy should be a top priority for Government.
The Climate Institute remains concerned with proposals that would see
Australia putting in place softer short-term climate targets - which may
weaken our international negotiating position,” Mr Connor said.
Connor said that the report made stark Australia’s historic opportunity
to demonstrate leadership in the lead up to the UN Conference on
Climate Change, to be held in Copenhagen next year.
recognises that implementing strong policies on climate change is now in
Australia’s national interest,” Mr Connor said.
“Unless we signal
that we are prepared to turn around our emissions by 2012, it will be
difficult to secure a favourable agreement.
“A transition to a low carbon economy will require bold leadership and meaningful targets,” Mr Connor said.
THE EMISSIONS TRADING DIVIDEND
Policy Brief – March 2008
introduction on emissions trading in Australia is likely to see the
Commonwealth Government generating significant amounts of new revenue
through the sale of emission permits. Indicatively, in Climate Institute
commissioned economic modelling this “emissions trading dividend” was
worth between $7-20 billion in 2020.
The size of the emissions
trading dividend will depend on the strength of the country’s emission
target (or “cap”). The weaker the cap the smaller the dividend - and
therefore money available to government to implement structural
adjustment initiatives to support the smooth transition to the low
Equity and structural adjustment
political sustainability of emissions trading as a key plank of
Australia’s policy response to climate change depends on equitable
distribution of the emissions trading dividend.
Various stakeholders have suggested that this revenue could be used by governments to:
- offset any energy price impacts on vulnerable low income communities;
- fund one off adjustment assistance payments to large emitters to offset an the loss of asset value; and
further development and deployment of new low emission technologies
and/or broader macro economic reforms such as reductions in payroll and
Addressing the impact of emission
trading on low income groups must be a top priority targeting spending
from the emissions trading revenues. Such spending should focus on
providing solutions multipliers through reducing the impact of increases
in energy prices at the same time as reducing greenhouse emissions.
Such programs could include subsidies and incentives for energy
efficient housing and appliances, and increase support for public
Managing potential impacts on the
disproportionately impacted industries and greenhouse intensive trade
exposed sectors will be an increasingly important issue for government.
However, careful consideration of an adjustment assistance non
greenhouse intensive trade exposed industries will need careful
Critically, any adjustment assistance must be
transparent and overseen by an independent body at arms length of
government to ensure the community confidence.