Prime Minister John Howard’s decision to establish a joint government-business prime ministerial task group on emissions trading has been applauded by industry.
The terms of reference calls for the task group to look at the nature and design of a global emissions trading system, in which Australia would be able to participate.
The task group’s considerations for reducing greenhouse gas emissions come against a backdrop of preserving Australia major competitive advantages through its possession of large reserves of fossil fuels and uranium.
Verve Energy general manager trading and sustainable energy, Greg Denton, said the company supported the development of carbon pricing.
“It is an issue that needs to be discussed and we want to be involved in any developments,” he said.
“Our primary focus will be to improve the conversion efficiency of power stations to reduce the emissions and develop renewable energy technologies.”
BP Australia’s Peter Metcalf said his company supported and encouraged the introduction of a carbon price through market-based mechanisms.
But some companies are still assessing the implications on their business of an emissions trading framework.
Western Power’s Marisa Chapman said the company was yet to form an opinion about emissions trading, and would be assessing the business implications associated with such a scheme in the near future.
A Woodside spokesperson said that, in light of the prime minister’s announcement on December 10 2006, the company was currently considering issues associated with emissions trading, and that it was premature to give their views on this issue.
Western Australian Sustainable Energy Association chairman Dr Ray Wills said that, while the need for a global emissions trading scheme was vital, the first step along that path was to establish a national trading scheme.
“The thought that we should wait until the whole world signs on is nonsense. We didn’t do that for the GATT in 1948, when we started talking about the reduction of trade barriers,” Dr Wills said.
“If we aspire to create the best environment, then we need to show leadership by establishing our own emissions trading scheme.”
