China blast over target statement - Australia, wealthy nations come under attack

Age
Friday 12/12/2008 Page: 7

AUSTRALIA and other wealthy nations have come under fire from China at UN climate talks for signing off on a greenhouse target statement that merely repeats what they agreed in Bali a year ago. And the Opposition is intensifying political pressure before the release of the Federal Government's much anticipated white paper next week, signalling emissions trading may need to be delayed because of the global financial meltdown.

Shadow emissions trading spokesman Andrew Robb said the proposed 2010 start date was "ridiculous in the current circumstances" - and the Government should listen to concerns from the business community about job losses. Opposition Leader Malcolm Turnbull said the priority must be "jobs, jobs, jobs". "That is why we are concerned that the Government not rush into an emissions trading scheme which will put jobs at risk without environmental gain," he said.

A key Senate cross-bencher, South Australian independent Nick Xenophon, also signalled he had concerns about the Government's proposed carbon trading model, which he said could inflict harm on the economy. He told the ABC that while he had no issue with a start date of 2010, the Government should look to Canada for inspiration. Its system rewarded energy efficiency, he said. Business remains split - with some big companies urging decisive early action and some lobby groups representing manufacturers and resources companies urging a delay until the economic crisis unwinds.

The Government's white paper is expected to confirm a range of concessions to energy-intensive industries, but nonetheless press ahead with a scheme and targets to reduce emissions by between 5 and 25 per cent, depending on whether the world achieves a new, comprehensive post- Kyoto agreement.

Meanwhile, rich countries bound by the Kyoto Protocol postponed controversy over aspirational greenhouse targets after eight days of haggling by again acknowledging scientists want them to cut emissions by 25 to 40 per cent, but not saying whether they would be adopted. It followed resistance to a more strongly worded draft from the "umbrella group" of countries, including Australia, Japan, Canada and Russia. Australia will reveal its 2020 greenhouse target on Monday.

Speaking on the conference floor, a Chinese Government spokesman said he was deeply disappointed the developed world had not shown greater commitment to setting a framework for a post-Kyoto climate deal, due to be signed late next year. "It appears that preparations are already under way for the great escape from Copenhagen - we must prove to ourselves and to the world that we remain committed to Copenhagen," he said.

The European Union called on other rich nations to set targets quickly in the 25-40 per cent range. Climate Institute Australia policy director Erwin Jackson said the result was better than negotiations had looked earlier in the week, but little had moved forward. "We're revving the engine but we still have the handbrake on," he said.

The conflict came as diplomats signed off on the bureaucratic phase of the talks, in some cases giving UN officials power to develop documents it is hoped will form the basis of the new climate deal. The second stage, a two-day conference, was to start overnight Australian tinge. Climate Change Minister Penny Wong told The Age it was important to get targets on the table, but they were not an issue that should be considered in isolation.

UN climate chief No de Boer said two major points remained unresolved - how to pay for helping poor countries adapt to climate change, and whether to include an Australian-led pilot scheme that would allow rich countries to offset their emissions by paying for carbon capture and storage projects in poor nations.

Senator Wong said including carbon capture in the clean development mechanism, a scheme under which rich countries get credit for investing in clean energy projects in the developed world, would drive investment in lowering emissions from the energy sector. "We know that developing nations will continue to use coal, so we are much better off for the planet if we can find technology that reduces emissions from that," she said.