Early carbon trading backed by report

Adelaide Advertiser
Thursday 30/10/2008 Page: 10

THE Rudd Government today will fire another broadside at unregulated capitalism, blaming market failures for the scourge of global warming. Just days after Prime Minister Kevin Rudd railed against "extreme capitalism," and excessive greed for causing the U.S.-led financial crisis, the Treasurer, Wayne Swan, this morning will use a speech to argue for decisive government action to turn around the climate change problem. "The market has failed to price the impact of carbon on our economy," he will tell a Brisbane conference, according to speech notes obtained by The Advertiser.

"The consequence is dangerous climate change which threatens to slow economic growth and imperil our way of life." The speech comes before the official release of a Treasury report later today modelling the economic impacts of an emissions trading scheme. Mr Swan will say the economic case for early action is strongly supported by that modelling. "New evidence which has just come in, suggests we are heading in the right direction," the notes say.

The Rudd Government has stuck doggedly to its promised July, 2010, introduction date despite intense pressure from the Opposition to delay its implementation because of the global economic downturn. Mr Swan believes growth can be protected. "With efficient emissions pricing, Australia can reduce the emissions intensity of GDP rather than actual GDP.

The modelling suggests that by 2050, GDP costs for economies that act early are 15 per cent lower than countries that wait for the world to act together. "The message is clear: acting early is an economic imperative. The assertions proved by the modelling all point to one conclusion: the carbon pollution reduction scheme is a pro-growth, pro competitiveness strategy for the Australian economy."