Emissions - Early action key to jobs, investment: Deep cuts won't hurt

Adelaide Advertiser
Monday 3/12/2007 Page: 43

DEEP and prompt cuts to carbon emissions would not damage the economy, an Australian delegation will tell the United Nations climate change talks starting in Bali today. The Climate Institute Australia will present fresh research showing that if emissions are reduced sooner rather than later, the cost of energy will be more affordable in years to come than it was in 2005. Economic momentum, jobs and investments would be safeguarded even with greenhouse gas cuts as high as 20 per cent below 1990 levels by 2020.

Emissions reductions of this magnitude would be necessary to reverse catastrophic climate change by mid-century, the institute said. Erwin Jackson, Climate Institute Australia policy and research director, said if Australia took a leadership position with other nations acting to slow global warming, it would safeguard a robust economy beyond 2020. In a detailed report co-written by Mr Jackson called Leader, Follower or Free Rider?

The economic impacts of different Australian emission targets, it said that if Australia continues to delay action, future climate policy shocks will hurt business. "Taking a leadership position - like early action - buys time and options, akin to buying insurance in an uncertain world," wrote Mr Jackson, who will be delivering the report at a forum in Bali today. Also attending Bali as part of the new Federal Government contingent, will be Clean Energy Council chief executive Dominique La Fontaine, and CEC chairman Richard Mclndoe, whose TRUEnergy group operates wind farms and coalfired power stations.

The institute's report is an update on the findings arrived at by the Business Roundtable on Climate Change last year that urged fast action on emissions policy, said Origin Energy executive Tony Wood. "There are some segments of the economy that will be significantly affected initially, especially high energy intensive industries like aluminium smelters. "But broadly across the economy, that won't be the case." The Climate Institute Australia is an Australian-based independent group working with community, business and governments on innovative climate change solutions.