July 2007
The Australian government will
begin work on a greenhouse gas emissions trading scheme with analysis of a
long-term goal for emissions reduction, Prime Minister John Howard
announced today. The government's A$637 million plan sets no cap on
emissions nor does it set a date for when the trading of emissions credits
will begin.
As a first step, Howard said the government will introduce legislation
later this year to provide for "comprehensive, robust and streamlined
national mandatory emissions and energy reporting."
Addressing the Melbourne Press Club, Howard said, "Now we must position
Australia for a low carbon future. We face a major new reform challenge in
designing an emissions trading system and setting a long-term goal for
reducing our emissions in the absence of a global carbon scheme."
"The scheme will include maximum practical coverage of emissions sources
and sinks, and of all greenhouse gases, a mixture of free allocation and
auctioning of single-year dated emissions permits, a safety valve
emissions fee designed to limit unanticipated costs to the economy and to
business, particularly in the early years of the scheme and recognition of
carbon abatement by firms in the lead-up to commencement of the scheme,"
Howard said.
"The Department of the Prime Minister and Cabinet will be responsible for
implementing this system and it will consult widely with industry and
others," he said. "Before selecting a long-term emissions goal in 2008 the
Government will commission careful modelling of the impact of various
targets."
Emphasizing the importance of a strong economy in dealing with climate
change, Howard outlined Australia's energy future.
"Abundant reserves of coal, gas, solar energy resources, geothermal
potential and the world's largest low-cost uranium deposit provide a
natural strategic focus for Australia's clean energy technology policy,"
the Prime Minister said.
"Under our Low Emissions Technology Fund the government has already funded
major projects which together involve investments of approximately $3
billion. These include the world's largest and most efficient photovoltaic
solar power station and the Gorgon CO2 Injection project which will be the
largest geosequestration project in the world," he said.
Today, the Prime Minister announced further development of nuclear power.
The government will invest $12.5 million in a Nuclear Collaborative
Research Program between the Australian Nuclear Science and Technology
Organisation and Australia's university sector. This will augment
Australia's ability to participate in the new generation nuclear energy
systems known as Generation IV, he said.
Environment and Water Resources Minister Malcolm Turnbull said,
"Australia's emissions trading scheme will be the most comprehensive in
the world."
"The scheme will cover 70-75 percentof total emissions, or almost 100
percent of industrial, energy and mining emissions," the minister said.
"By including large emitters alone, the scheme would cover 55 percent of
total emissions, however by including transport and other fuels the
coverage of the scheme is significantly increased."
"The science tells us the world needs to make massive cuts to global
emissions over the next 50 years," said Turnbull. "For practical purposes
this will mean that by mid-century all or almost all of the world's
electricity will have to come from zero or near-zero emission sources."
In addition, the Prime Minister announced a $26.1 million investment over
five years to set up a single, streamlined system intended to make
greenhouse gas and energy reporting by Australian companies as easy as
possible.
Critics immediately jumped all over the government's plan, saying it does
not go nearly far enough to deal with the global warming crisis.
The next general election for the Parliament of Australia must take place
by January 19, 2008, and critics said the government's emissions trading
scheme is merely electioneering.
The opposition Labor Party released a national television ad today with
the message "John Howard's asleep on climate change."
Labor calls for cutting Australia's greenhouse gas emissions by 60 percent
on 2000 levels by 2050, setting up a national emissions trading scheme,
and ratifying the Kyoto Protocol, which the Howard Government opposes.
"If this is Prime Minister John Howard's big picture response to climate
change it is a complete failure," said Australian Greens climate change
spokesperson Senator Christine Milne. "This is an election driven
response, not a climate driven response."
"There are no science-driven targets, no role for Kyoto and no incentives
for renewable energy. After a decade of inaction and active frustration of
global efforts, Mr. Howard is delusional about Australia's global role in
forging a new treaty to tackle climate change."
"This announcement is an indication that if John Howard wins government
again he won't tackle polluters, he'll give them free permits to pollute
and the cheap option of a safety-valve if they exceed their permits. This
trading scheme is being designed for polluters, not for the planet,"
Senator Milne said.
The nation's largest environmental group, the Australian Conservation
Foundation, ACF, said the government's cap-and-trade emissions trading
scheme "needs a cap."
"The crucial feature of a cap-and-trade emissions trading scheme is the
cap – the target," said ACF Executive Director Don Henry. "Without a
target, there is no certainty for business and no certainty for the
environment."
"In its submission to the Prime Minister's task group on emissions trading
our leading scientific body, the CSIRO, recommended developed countries
like Australia adopt targets to cut emissions by 60 to 90 percent by 2050
to help the world avoid dangerous climate change," said Henry.
"Australians expect the Prime Minister and the Opposition leader to commit
to this target before the election so we know whether their proposals are
fair dinkum."
Henry said the ACF has joined with the business community in calling for a
2020 target to ensure, as the Business Roundtable on Climate Change said
last year, "a smooth transition to a low-carbon economy and as a milestone
towards achieving the long-term goal."
Greenpeace Australia was scathing in its criticism of the government plan.
"Kyoto is up and running with a comprehensive emissions trading scheme.
Any suggestion by John Howard to start a stand-alone Australian based
trading scheme is just a delay tactic to appease the big coal polluters,"
said Greenpeace.
"John Howard, if he was genuinely interested in dealing with climate
change, could immediately increase our renewable energy target, mandate
better efficiency for appliances and cars, and ensure no more polluting
coal fired power stations are built," Greenpeace said. "None of this is
happening."
"The climate cannot wait. Scientists tell us we have five to 10 years to
turn our emissions pathway around and away from climate disaster."
But Environment Minister Turnbull said the government is concentrating on
practical measures to bring down greenhouse gas emissions.
A new five-year $336.1 million Green Vouchers for Schools programme will
provide every school in Australia with up to $50,000 to help install solar
hot water systems and rainwater tanks, he said.
"Not only will this initiative help reduce our energy and water
consumption, but it will provide students and school communities with a
practical demonstration of the sustainable use of energy and of water,"
said Turnbull.
Funding of $252.2 million over five years will also be provided for up to
225,000 solar hot water rebates of $1,000 for households which install
eligible solar and heat pump water heaters in their homes.
"Energy used to heat water is the single largest source of energy-related
greenhouse gas emissions from Australian homes, accounting for around 28
per cent of a home's energy use," Turnbull said. "By replacing high
emission water heating technologies almost a million tonnes of greenhouse
gases will be prevented from entering the atmosphere each year."
But in the global scheme of things, whatever Australia does will not make
much of a difference, said the Prime Minister today.
"Climate change requires a truly global response," Howard said. "With
Australia's contribution to global emissions at less than 1.5 per cent and
falling, nothing we do alone will materially affect our climate."
The Kyoto model provides neither a global solution nor a lasting one and
that is why Australia supports negotiations on a new global framework,"
the Prime Minister said.
"A successful Conference of the Parties to the United Nations Framework
Convention on Climate Change to be held in Bali, Indonesia in December,
will be crucial. We also support international efforts to set by the end
of next year a long-term global goal for reducing greenhouse gas
emissions," he said. "This is in line with our setting a long-term
emissions reduction goal for Australia."
|
