Australian Consulate-General, Guangzhou
MEDIA RELEASE 6 June 2007
Australia to Set up Emissions Trading
Scheme to Cut Greenhouse Gas
Australia is to introduce a national emissions trading scheme to reduce greenhouse gas emissions.
Prime Minister, John Howard, this week told a Liberal Party Council conference in Melbourne that Australia would have a domestic carbon emissions trading scheme - a cap and trading system - up and running by 2012, with an emissions reduction target to be set next year.
Mr Howard outlined the Government's response to a top-level task group report on emissions trading, saying that the move was the most momentous economic decision facing Australia for the next decade.
“[The trading scheme] must be built to last,” he said. “Not five or 10 years, but the whole of the 21st century, if Australia is to meet its global responsibility.”
It was expected that the domestic trading scheme would be operational no later than 2012, with a long-term “aspirational” goal for reducing carbon emissions which would be set in 2008.
Mr Howard said that the initiative was a great economic challenge for Australia, as well as an environmental challenge.
“Australia should not pay higher energy costs than necessary to achieve emissions reductions. “If we get our response wrong, it will do enormous damage to the economy, to jobs and to the economic wellbeing of ordinary Australians, especially low income households.”
The trading scheme would be more comprehensive, more rigorously grounded in economics and with better governance than similar schemes in Europe.
Mr Howard emphasised that Australia would continue to lead the world on climate change, globally and in the Asia-Pacific region, but not in a way which lectured and moralised other countries, but in a way which built support for global action to tackle the global challenge.
Mr Howard said Australia could not stop climate change alone, as Australia accounted for less than 1.5 per cent of global emissions.
The proposed trading scheme would be national in scope and as comprehensive as practicable, designed to take account of global developments and to preserve the competitiveness of Australia’s trade-exposed emissions intensive industries.
Mr. Howard said that Australia should not pay higher energy costs than necessary to achieve emissions reductions.
“ In other words, governments need to let the market sort out the most efficient means of lowering emissions with all low emissions technologies on the table and that of necessity, must include nuclear power.”
The Prime Minister’s statement follows the latest data from the Australian National Greenhouse Office which showed that Australia has steadied emissions growth and is on track to meet its Kyoto target.
The Minister for Environment, Malcolm Turnbull, said that the Greenhouse Office Accounts showed that there had been no growth in emissions between 2004 and 2005.
Australia’s greenhouse gas emissions in 2005 were 559 million tonnes. Only 102 per cent above 1990 levels – the same level as in 2004.
“Australia is committed to meeting its Kyoto target of 108 per cent of 1990 levels and the latest accounts show that we are on course to do that,” Mr Turnbull said.
“It is a significant achievement that since 1990 we have managed to constrain growth in our greenhouse gas emissions at 2 per cent while our economy has grown by 61 per cent.
“This is consistent with the most recent emissions projection showing Australia is tracking within one percentage point of meeting its Kyoto target over the five years 2008 to 2012, “ Mr Turnbull said.
“The Australian Government has invested more than $20 billion on measures to protect the environment, including more than $2 billion on climate change measures that by 2010 will result in emissions savings of 87 million tonnes each year from going into the atmosphere.
Canberra
5 June 2007