Does a carbon ‘price’ mean a carbon ‘tax’?
The government’s Multi-Party Climate Change Committee met recently for the first time. It was interesting to hear the opening position of the committee: that a carbon price is necessary to reduce emissions. They went on to encourage investment in low emissions technologies and to complement its existing programs.
So the question is not whether there should be a price on carbon but, rather, how that price should be applied.
This takes us to the field. Let’s consult the major players.
The government has, therefore, established two new roundtables – one representing business and the other with Non-Government Organisations (NGOs). The business roundtable comprised key players from right across the economy: mining, transport, manufacturing, energy, retail and banking.
The NGO roundtable, on the other hand, includes leaders from across the community sector: unions, social services, environment groups and local government.
This is good initiative by government – engaging across the spectrum will likely ensure the views of business and the general community are front and centre as the government progresses this important economic reform.
Even if the starting premise is agreed, there is still so much to be worked out. A carbon tax or an emissions trading scheme, a full emissions trading scheme or a limited emissions trading scheme? What price to put on carbon? How much, if any, assistance should be paid to emissions intensive industries?
Given the problems the draft ETS had in getting agreement, it will be interesting if the committee and the roundtables can build a consensus this time around.
We’re conducting a survey at the Institute which will run for another week, asking for members’ position on the topic of carbon tax.
http://www.surveymethods.com/EndUser.aspx?B490FCE6B6F5E6E7B1
Tuesday, November 9, 2010
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Big business is committed to making a profit at the expense of all other concerns. It is unlikely that they will give up anything for a price on carbon. I expect the deal will end up in the taxpayer forking out money that will go straight into the pockets of the CEOs and executives. Inviting the NGOs to the roundtable is just a sideshow because if you have a close look at the NGOs that are there, some are opposed to anything that will affect their industries and others are the ones who committed Australia to 5% target by 2020 on 2000 levels which is nowhere near enough. I do not expect anything real to come out of the government's climate change committee unfortunately.
ReplyDeleteThe majority of organisations realise that carbon is a real risk to their ongoing business. In fact, a lot of what many organisations have done to date in trying to reduce carbon has been purely voluntary. Granted, there is still much more to be done. There are organisations that have not gone far enough in reducing their emissions but most of the leadership around carbon reduction has come from business rather than policy makers. A pricing mechanism was widely understood to be the fairest and cheapest way to reduce emissions and I am hopeful that we will start to get some consensus on putting a price on carbon over the term of this parliament.
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