Feb 27, 2014 - 11:56am
Below is The Climate Institute's submission to the Emission Reduction Fund Green Paper.
The discussion outlined in the Green Paper does not change The Climate Institute’s (TCI) view that the Emission Reduction Fund (ERF), as it currently stands, will be neither an effective nor enduring climate policy. The ERF thereby risks institutionalising volatility, if not turmoil, in energy, carbon and climate policy until 2015 at least. TCI expressed a similar concern about the risk of chronic short-termism in its submission on the Energy White Paper.
The ERF’s objectives lack ambition and clarity on actual emissions and climate outcomes. TCI remains concerned that the ERF is part of a policy suite that replaces existing laws—which make some of our largest emitters take responsibility for their emissions and the cost climate change imposes on communities—with an entitlement to pollute for free. The ERF, as proposed, does not include declining limits on emissions, links to international markets or an explicit price on emissions, all of which are necessary to achieve emission reductions at the required scale to 2020 and beyond.