Lock in trading scheme, says Garnaut

Age
Tuesday 24/3/2009 Page: 2

FORMER government climate adviser Ross Garnaut has warned that defeat of the emissions trading scheme in the Senate would have global implications, hampering a post - Kyoto deal to cut greenhouse gases. Professor Garnaut yesterday maintained his strong criticisms of the Government's scheme, but said that regardless of its failings it was important to lock it in this year.

He said rejection of the scheme by the Parliament would be noticed in the US, which is now deciding whether to introduce its own scheme, and would raise doubts internationally about Australia's ability to help cut emissions.

Conversely, he said, passing even a flawed scheme would signal Australia was meeting its commitments and would help build momentum for a new deal at a UN meeting in Copenhagen in December. In Australia, defeat of the legislation would leave a policy vacuum likely to be filled by a host of more expensive and less effective policies.

"To delay introduction of the scheme altogether until it was needed to secure large reductions in emissions would carry high risks," he told the Greenhouse' 09 conference in Perth. "Time is required to iron out inevitable imperfections." Professor Garnaut repeated previous criticisms of the Government's model, saying the national interest would be best served by deeper greenhouse cuts than the Government's proposed 2020 target of 5% to 15% .

He called for a soft start under which industry would buy emissions permits at a fixed price during the first two years. Professor Garnaut also warned against countries attaching carbon tariffs to products from nations that do not act to tackle climate change.

US Energy Secretary Steven Chu has backed carbon import duties, an idea previously supported in the US Congress. Climate Change Minister Penny Wong told the conference the Government would spend $20 million to help Pacific islands and East Timor to research the local impacts of climate change.