Food Prices and Emissions Trading Factsheet

Feb 01, 2010 - 8:00am

The Climate Institute has analysed key research on the impact of an emissions trading scheme (ETS) on food prices.

The research debunks the more hysterical claims made about food price rises under an ETS. Key findings include:

  • All credible modelling shows modest price rises of around 1 per cent under an ETS;
  • Extreme weather events linked to climate change are significant drivers of food prices and volatility of both prices and supply/production; and  
  • Putting a price on carbon, as part of a global effort to reduce emissions, is prudent risk management to address threats to agricultural sector.
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