Carbon scheme: Wong quiet on possible delay

Canberra Times
Friday 7/11/2008 Page: 6

Climate Change Minister Penny Wong gave away no clues yesterday about whether the Federal Government was considering delaying or altering the emissions trading scheme in light of the global financial crisis. In Melbourne to launch a report on the impact of climate change on Australia's infrastructure, Senator Wong said only that the Government would take economic circumstances into account when designing the carbon pollution reduction scheme.

The scheme, a cap-and-trade system that would put a price on greenhouse gas emissions, is scheduled to come into force in 2010, with the draft legislation to be issued next month for wider consultation. Senator Wong said effective climate change policy was necessary for Australia's future economic security, but the Government would take a responsible approach to the task.

"Of coarse the Government will approach the design of the carbon pollution reduction scheme with economic responsibility at the forefront of its mind," she said. ''But as the Prime Minister has said ... we understand that climate change is not something we can simply avoid, we do have to transition the Australian economy over time to a lower carbon future.

"What we know from what Nicholas Stern told the world, what Ross Garnaut told Australia through his review, and from the Treasury modelling, is that delay will simply increase the cost." Delays and altering the scheme's goals were neither conclusively ruled in nor out. Globally, the response will depend greatly on the result of the United Nations Climate Change Conference to be held in Copenhagen in November next year.

Senator Wong indicated a hope for increased leadership from the United States now Barack Obama had been elected to succeed President George W. Bush. "We have always said for an effective global agreement to be in place we will need leadership from the United States, and we will need the engagement particularly of China and India," Senator Wong said.

"We do understand that the United States is a critical and key player in international negotiations." The Australian Academy of Technological Sciences and Engineering report made seven recommendations, including a taskforce that would assess the national adaptation to climate change.

Senator Wong thanked the academy for increasing the "knowledge base" and said while recommendations had already been adopted, the Government recognised more work was needed. "We will continue to progress our adaptation agenda as part of our three pillars of climate change policy," she said.