No Time Like the Present to Act

The head of AGL Energy says a price on carbon is needed to guarantee the security of Australia’s energy future. EBA’s Fiona Wain says the Government should immediately reinstate the emissions trading scheme as it will unleash capital investment, create wealth and generate jobs. While Australia’s Prime Minister Julia Gillard, facing an election where climate policy will be a key issue, has pledged to bring in a carbon price but said it may take time as it needed industry and voter consensus.

By Michael Perry for Reuters (13 July 2010):

Australian Prime Minister Julia Gillard, facing an election where climate policy will be a key issue, has pledged again to bring in a carbon price but said it may take time as it needed industry and voter consensus.

Gillard holds a cabinet meeting on Tuesday to formulate a new climate policy, with media reporting it may include restrictions on coal-fired power stations and new energy efficiency targets.

There is speculation Gillard may call a late August election within days.

“I understand there are millions of Australians disappointed we have not yet been able to put a price on carbon. I am disappointed by that too,” Gillard told a news conference in Canberra ahead of the cabinet meeting.

“But in order to get there we need to have a dialogue with the community that leads to a deep and lasting consensus about how we all price carbon, how we will go forward with a market-based mechanism, how we will work together to achieve the kind of transformations in our economy.”

Source: www.reuters.com

ABC Report:

Prime Minister Julia Gillard says she will not revive the Government’s emissions trading scheme until at least 2013.

Ms Gillard has indicated she will revise Labor’s climate change policy before the election, and ruled out a carbon tax as an interim measure.

She says the Government will stick with its intention of reviewing global progress at the end of 2012 before deciding whether to proceed with the trading scheme.

“The pricing of carbon I think is best done through a market-based mechanism, that is the carbon pollution reduction scheme, and the 2012 timeframe stands there,” she told ABC TV’s Lateline.

“I believe that there are a set of things we can do in the meantime.”

Labor’s previous plans for an emissions trading scheme were shelved under former prime minister Kevin Rudd.

Ms Gillard says the Government’s policy will aim to reduce household carbon emissions.

Source: www.abc.net.au

Statement from Fiona Wain, CEO, Environment Business Australia:

“We cannot afford to wait until 2012 for a price on carbon”

Climate change is a dire problem for all societies and economies.   A number of scientists have said that unless action to reduce greenhouse gas emissions, and to reduce concentrations of atmospheric carbon, is ramped up considerably the world is on a trajectory to undergo an average global warming of at least 4 degrees Celsius^. 

As the most vulnerable of developed countries Australia has a vested self-interest in tackling this problem head-on because it has unparalleled economic, security, health and wellbeing implications for all Australians. 

Australia is endowed with the skills, natural resources and economic capacity to help reduce atmospheric concentrations of carbon, rebuild soil productivity, and spearhead the transition to renewable energy.

Australia should seize this opportunity  to tackle climate change and the converging threats of ‘peak’ food and fuel.

The former Prime Minister’s decision to defer a decision on carbon pricing until 2012 denies the market strong signals that are urgently needed to develop the opportunity-side of climate change at scale and speed. 

The decision denies Australia the opportunity to build ‘new markets, new industries, new jobs’ and become competitive in the ‘Green Economy’.  Other countries – China, Japan, UK, USA, and the European Union seizing this initiative. 

Australia is being left behind because the lack of a carbon price signal has stalled investment in the vital projects that will help reduce greenhouse gas emissions.  It is a decision that is sending capital investment to other countries.

At the last election the Government was given a clear mandate to act decisively on climate change. 

Prime Minister Gillard should immediately reinstate the emissions trading scheme (referred to as the Carbon Pollution Reduction Scheme or CPRS) because it will unleash capital investment, create wealth and generate jobs.

A price on carbon is a key element of a policy portfolio to encourage investment in the Green Economy.

Editor: Fiona Wain said this in a letter sent to Prime Minister Gillard on 29 June 2010.

Source: www.environmentbusiness.com.au

Money Nine MSN (9 July 2010)

The head of renewable energy company AGL Energy Ltd says a price on carbon is needed to guarantee the security of Australia’s energy future.

AGL chief executive Michael Fraser says Australia’s resource and energy focused economy means business and political leaders have to consider the impact of climate change.

Ignoring the issue risks being caught out by changes in global energy consumption patterns, he says.

He says it’s “almost inevitable” climate change and energy security will drive a reduction in the consumption of high emission energy sources globally.

“Any change to the energy sources the world consumes will have a significant impact on our economy, both from an export perspective and from a domestic consumption perspective,” he told an American Chamber of Commerce luncheon in Sydney on Friday.

“We cannot simply assume the world of today will continue.”

Mr Fraser said continuing global demand for Australia’s energy resources would rely on the supply of lower carbon intensive products.

“It is my firm view that a broad-based cap and trade emissions trading scheme is the best way to deliver least cost solutions for reducing emissions.”

Mr Fraser said the federal government should implement such a scheme as soon as community consensus can be achieved.

Source: www.money.ninemsn.com.au