Jul 15, 2011 - 10:31am
A number of myths have emerged around the role of financing clean energy in developing countries to meet Australia’s pollution targets. This factsheet addresses three of the most common myths:
MYTH 1: Using international reductions to meet a target means action does not happen in Australia.
FACT: A pollution price in Australia will start to unlock billions of dollars of new investment in low pollution technology. Together, the combined effect of the pollution price and indicative estimates of the impact of additional policies (not modelled by Treasury) indicates that Australian pollution levels should begin to decline over the coming decade. Modelling by Treasury shows that only 15 per cent of Australia’s total pollution in 2020 will be off-set through the purchase of international permits.
Using international reductions means the Government can’t fund revenue commitments such as compensation to households, industry assistance and clean energy projects.
FACT: Every single Australian pollution permit will be sold to companies that are covered by the Clean Energy Future package, generating revenue to support households, jobs and businesses and investment in important areas such as energy efficiency and clean energy.
MYTH 3: International pollution reductions are not real and credible.
FACT: Audit processes of international have become increasing stringent through time. International pollution credits are created by investing in projects that reduce pollution in developing countries under agreed international rules. To date over 3,000 projects have been approved globally, with over 80 per cent of these aimed at expanding renewable energy, reducing dependence on fossil fuels and improving waste management. These projects are monitored and verified by independent processes. Australia’s overseas permit scheme would only accept legitimate permits and is subject to domestic independent review.