Report's hard line on carbon

Sydney Morning Herald
Monday 22/9/2008 Page: 5

THE softer start to a carbon trading scheme being considered by the Federal Government and its climate change adviser, Professor Ross Garnaut, would do little to cut the nation's greenhouse gas emissions and cost more over the long term, new research shows. A report commissioned by the Climate Institute Australia studied different trajectories for cutting Australia's emissions before 2050, and concluded that a massive energy efficiency program was required to help the energy sector avoid $40 billion in extra costs over the next 40 years.

"If you go down the path of a soft start to emissions trading you are not going to get the same emissions cuts and the cost over time is likely to be greater," said the institute's chief executive, John Connor. Energy efficiency and the Government's Mandatory Renewable Energy Target were central to keeping electricity prices at manageable levels, says the report, prepared for the institute by energy modellers McLennan Magasanik Associates and Associates.

The union movement called yesterday for a national energy efficiency campaign. A "green revolution" could equip 500,000 homes with smart appliances, insulation and double glazing, saving an average household $429 a year in electricity bills, said the president of the ACTU, Sharan Burrow.

The program would create 7000 full-time "green collar" jobs at a cost of $2.75 billion, while slashing emissions by the equivalent of 1.5 million tonnes. The Australian Chamber of Commerce and Industry asked the Government yesterday to consider including nuclear energy in the nation's energy mix.