A UK Government report into climate change has made waves, with Prime Minister John Howard calming his party room while the Minerals Council of Australia threw its support behind some of the findings.
A UK Government report into climate change has made waves, with Prime Minister John Howard calming his party room while the Minerals Council of Australia threw its support behind some of the findings.
Mr Howard told government MPs not to be "mesmerised" by the Stern report which warns of the economic impact of global warming.
"The prime minister said that the science overwhelmingly says that the globe is getting warmer," a joint party room spokesman said.
"The prime minister made the observation that the profile of the drought, two hot days in October and a renewed emphasis on climate change meant this had escalated the issue in the public conscience.
"The prime minister said don't get mesmerised by one report."
The dramatic report by former World Bank chief economist Nicholas Stern says that, if action was taken immediately, the benefits of determined worldwide steps to tackle global warming would massively outweigh the economic and human costs.
It describes climate change as the greatest market failure the world has seen.
The joint party room spokesman said Mr Howard told MPs that what was needed was a long-term approach with cleaner use of fossil fuels and that nuclear and renewable energies were part of the solution.
"It's a big challenge and we are doing a number of things," he told the party room.
The spokesman said a number of government MPs spoke about climate change, specifically the need to use technology to reduce greenhouse gas emissions.
"All accepted the need for Australia to work towards its targets on greenhouse gas emissions," the spokesman said.
A number of MPs warned the party room of the bad economic consequences of a Labor proposal to set up a carbon trading scheme.
Meanwhile, MCA chief executive Mitchell H. Hooke said that reconciling energy security with climate change management was a great challenge, while maintaining that the world would need all existing energy sources to meet burgeoning demand, as well as those that may become available.
The full text of the MCA announcement is pasted below
STERN REPORT UNDERSCORES MINERALS INDUSTRY ON CLIMATE CHANGE
The key messages of the Stern Report on climate change underscore the Australian minerals industry's policy position and strategic initiatives, according to the Minerals Council of Australia Chief Executive, Mitchell H. Hooke.
"We agree that reconciling energy security with climate change management is one of the greatest challenges confronting the globe and thus our industry.
We are in accord with the Stern Report in that we don't know anybody who seriously contests:
- the concept of global warming;
- the precautionary principle underpinning action now;
- the step change technology imperative for all energy sources - be they fossil fuels, renewables, nuclear;
- that there will be a carbon price in a carbon constrained world;
- that market mechanisms will be the most efficient means of determining a carbon price, and
- the complexity in determining the "how and when" of government intervention in carbon pricing in global markets to avoid negative economic consequences and optimise environmental outcomes.
We are committed to being part of the global solution - global collaboration in policies, strategies and technologies. We shoulder a huge responsibility given that there is universal agreement that fossil fuels will continue to comprise in the order of 80-85% of the world's primary energy supply. We simply don't have the luxury of political symbolism or ideologically driven targets when we bear the responsibility for real and tangible solutions.
We concur with Stern that managing climate change is a global challenge, requiring a global solution. Unilateral action is not the answer in managing global climate change. Unilateral action may only serve to undermine economic development, encouraging industry to move offshore where the environmental disciplines are not as stringent, without tangible associated environmental benefits. Hypothetically, even if Australia could close down its economic activity and void all emissions, our current contribution of around 1.5% to global emissions would be swamped by the developing economies of China and India in a matter of months.
We do not subscribe to the energy sources substitution argument. The world will need all available energy sources to meet burgeoning demand - fossil fuels (coal, gas, oil), renewables (solar, wind, wave, biomass) and nuclear (uranium).
We welcome the Stern Report's emphasis on the importance of breakthrough technologies, again across all energy sources, in reducing greenhouse gas emissions, in improving eco and energy efficiency and adaptability.
For fossil fuels this means continued effort in carbon capture and storage (geo-sequestration of carbon dioxide), cleaner coal production, development of the hydrogen economy, and increased efficiency in minerals and metals production.
We endorse Stern's sense of urgency - though this should not be misconstrued as a "wake up call" to the minerals industry. We are well advanced in our programs and strategies to give effect to the very outcomes Stern advocates. Specifically, the industry is committing billions of dollars to the development and deployment of low emission technologies and improvements in energy and eco-efficiency, notably through:
- the Low Emissions Technology Fund - a Government/Industry Partnership of direct spending in the order of $1.5 billion and more from industry;
- the COAL21 Program and the COAL21 Fund - a world-first whole of industry initiative in the development and deployment of clean coal technologies, expending in the order of $300 million from industry over 5 years;
- Cooperative Research Centres in Sustainable Development, greenhouse gas technologies and low emissions technologies.
