Australia could have an emissions trading scheme in place, on target to reduce the country’s greenhouse gas emissions by 60 per cent, as soon as 2010, if state and territory leaders get their wish.
Australia could have an emissions trading scheme in place, on target to reduce the country’s greenhouse gas emissions by 60 per cent, as soon as 2010, if state and territory leaders get their wish.
A proposed design for the National Emissions Trading Scheme was presented in Perth last week as part of a series of national public forums designed to encourage submissions from public and industry stakeholders on the design, and on suitable emissions targets.
The scheme was designed by the National Emissions Trading Taskforce, which was established by state premiers and territory chief ministers without the support of the federal government.
Industry, environmental and public stakeholder input formed the development of the scheme design, which includes strategies to reduce stationary energy emissions, which account for around 50 per cent of all greenhouse gas emissions.
Emissions trading, according to the taskforce, is the most cost-efficient way for companies to meet the task of reducing their emissions, while encouraging the adoption of new energy-efficient technologies and emission abatement activities
The scheme would allow parties to buy and sell emissions permits, or credits for reductions in emissions of certain greenhouse gases.
Permits would be allocated to some participants, including trade-exposed, energy-intensive industries, free of charge, with the remainder to be auctioned.
If a company does not utilise all of its units, it can sell its surplus units to other companies.
Businesses also have the option of buying offsets in the form of forestry projects or carbon sequestration.
Environment Minister Mark McGowan said the state government was participating in the NETS process, and treated climate change very seriously.
“However, we are very concerned to ensure that any scheme arrived at does not damage the Western Australian economy,” he said.
“The WA government has already done a lot to address climate change, such as our new gas-fired power station, our exporting of LNG, our electricity disaggregation process, our strict clearing controls and the greenhouse and energy taskforce, which is due to report in December.”
NETS was designed to meet international standards, and is aligned with the Kyoto protocol and the European emissions trading scheme.
The Chamber of Commerce and Industry WA, which previously provided in-principle support for a trading scheme, provided that it was implemented on a national level and consistent with international standards, is currently reviewing its position.
A spokesperson from CCIWA said the review of their greenhouse and climate change policy, which would centre around the issue of an emissions trading scheme, would be finalised in December.
Carbon Neutral environmental consultant Ben Rose said the proposal was a good starting point, but the scope of industries included in the scheme should be expanded to include transport.
“It’s a lot better than what we’ve got [at the moment], but I don’t think it goes far enough. What worries me is that it’s going to be too slow,” he said.
Mr Rose said individuals should be prepared to shoulder some of the costs associated with implementing the programs, which would inevitably lead to higher electricity and fuel costs for consumers.
“Public education is paramount. The consumer needs to know that they will be paying, there will be a carbon price for their emissions, and that price can go up as the market goes up,” he said.
Verve Energy general manager, trading and sustainable energy, Greg Denton, said the company supported the development of a carbon pricing system.
“It is an issue that needs to be discussed, and we are interested in attending forums such as this one and being involved in any developments,” he said.
“The multi-state approach is a good one and we are supportive in principle, if only to get the issue on the table.”
Consultation on a national emissions trading model has become more timely following the release of the Stern Report this week, which calculated that delaying action on climate change, even by a decade or two, could cost the equivalent of at least 5 per cent of the global GDP each year.
The report explicitly refers to the introduction of emissions trading schemes, and the global linking of such schemes, as a powerful and cost-effective way of reducing emissions.
