Carbon Pollution Will Rise Without a Price on Carbon

The federal government’s hastening of renewable energy efforts will be ineffective without support from a market mechanism like an emissions trading scheme.  This is the key finding in a new report by Bloomberg New Energy Finance, commissioned by the Climate Partners, which includes environmental lobby group the Climate Institute, finance, energy and communications companies.

AAP report (24 May 2010):

The federal government’s hastening of renewable energy efforts will be ineffective without support from a market mechanism like an emissions trading scheme, a new report finds.

The report by Bloomberg New Energy Finance was commissioned by a group called the Climate Partners, which includes environmental lobby group the Climate Institute, finance, energy and communications companies.

It comes after the government shelved its emissions trading scheme and focused on its renewable energy target.

The government wants 20 per cent of the nation’s electricity to come from renewable sources by 2020 and plans to split the target to get there sooner.

While new renewable energy targets will begin to restructure the energy sector, the Climate Partners report finds Australia’s carbon pollution will continue to rise without price signals and other policies.

The five per cent carbon pollution reduction target agreed on by both major parties would be missed by more than 170 million tonnes in 2020, the modelling shows.

The 25 per cent target, which also has bipartisan support but is conditional on global action, would be missed by 270 million tonnes.

The Climate Institute’s chief John Connor said without a market mechanism to send a price signal to polluting industries, Australia’s pollution would be rising at a time when it should start falling.

“A price on carbon is inevitable,” he said.

“The choice we have is to delay and suffer the economic pain of being a high-carbon economy in a low-carbon world or put in policy signals to drive the change needed to safeguard our competitiveness and prosperity.”

Source: www.news.smh.com.au