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The Commonwealth Government will release its green paper on a proposed Emissions Trading Scheme today.
As a green paper it will flag some of the principles, directions and options the government is considering for inclusion in the scheme.
Queensland Conservation believes that there are five key tests that an Emissions Trading Scheme must pass to be effective in reducing Australian emissions:
- A cap and trade scheme designed to reduce emissions by 50% by 2020 (Measured against the international benchmark 1990 levels)
- A scheme that starts by 1 July 2010, with legislation passed through
parliament in the first session in 2009
- All permits to be auctioned, with revenue to be allocated to support
disadvantaged communities and for investment in energy efficiency and
renewable technologies
- No exemptions for trade-exposed/energy-intense industries. As Ross
Garnaut commented, that would include just about every industry in Australia.
Exemptions place an unfair burden on other sectors
- A minimum of 70% emission coverage, this includes the transport
sector. Agriculture should be excluded from the first round due to a
lack of robust measurement and it is self evident that the scheme
should allow linkages to Kyoto compliant carbon markets.
Offsetting fuel costs
The problem with offsetting the increased costs of an Emissions Trading Scheme on fuel prices is that it will make little difference to the affordability of fuel. As a result of Peak Oil making supply more expensive, prices will continue to rise. A recent report from the Future Fuel Forum projects a possible $8 per litre price by 2018.
The answer now and into the future is to reduce fossil fuel consumption, and therefore greenhouse gas emissions.
- In the short term that means setting new vehicle efficiency standards and encouraging the most fuel efficient vehicles on to the market.
- It means investment in public transport so that it becomes the dominant form of transportation as soon as possible.
- A proper price signal on fuel today will shift the emphasis on to these solutions. Offsetting the costs simply undermines and delays that agenda by putting a brake on the ingenuity that would otherwise be directed to searching out the most commercially viable climate-friendly solutions if the price is set correctly.
- In the longer term its about switching to low emission alternatives, particularly electric vehicles, powered by renewable energy.
- It means switching to rail freight. Rail transport currently has about half the emissions of trucks. This will improve with low emission electrification.
- It means building a new fast rail network in Australia.
- It means avoiding transport emissions where we can, investing in more localised produce and services and finding communication forms that avoid the need to travel as frequently as we do now.
Complementary Measures
An Emissions Trading Scheme is only part of the solution. Government, both Commonwealth and State, should continue to develop and implement a range of complementary measures which contribute to immediate emissions reductions. These can include energy efficiency initiatives, renewable energy deployment and an end to broadscale land clearing in all States.
For more information on the orderly transfer to a Climate Neutral Queensland see our 2005 report  Toward Queensland's Clean Energy Future
or Greenpeace's recent energy [r]evolution document .
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