Emission trading on the agenda – time to move ahead

Wednesday, 16 August 2006 23:38

“It’s better than carbon or other taxes because the revenue is directly linked to environmental action.  Under a properly developed scheme the community can have the confidence they would want - that any rises in electricity prices will be helping reduce greenhouse gases,” said Jeff Angel, Director of the Centre.

“Criticisms by Federal Government Ministers should be ignored.  They are just throwing smelly labels like ‘it’s a tax’ or ‘it won’t work’ around, in an effort to disparage a constructive first effort by the states.”

“The fact is that NSW has a carbon permit scheme and it has reduced millions of tonnes of carbon emissions, with a small increase in electricity prices.  The new multi-state scheme has also learned the lessons of the European Union experience.”

“Now the next stage is the detailed arrangements.  Issues such as free permits to existing polluters; the cap; the starting date; and role of other energy programs can be discussed.  We need to stop environmental damage from the emissions being a subsidy to support energy intensive industries.”

“It’s important to note that the modelling by the states shows that energy efficiency has a big role to play in curtailing the price rises.  This should lead to a bigger effort to set up energy efficiency funds, like the one in NSW and reform of the National Electricity Market, so that it stops favouring coal fired generation above energy efficiency,” Mr Angel said.