Perspective article

With the release of the Government's Green Paper, EBA issued a preliminary commentary which was circulated to the media and all EBA members. As well as being the means of pricing carbon EBA believes that the emissions trading scheme will be a significant driver of new technology and infrastructure. We suggest that there is far more 'upside' to be gained than the current Green Paper would suggest and we look forward to working with Government to develop the new commercial opportunities. Brian Toohey writing in the weekend's Financial Review (July 19-20) included some interesting figures in one of his far-reaching articles "...the Futuregen 80 megawatts CCS demonstration plant in Queensland will cost $4.7 billion. This contrasts with the $400 million the listed West Australian wave power company Carnegie Corporation proposes spending on a 50MW plant to produce zero emissions electricity and desalinated water."

EBA will of course make a full submission to the Department of Climate Change in response in due course. EBA members are welcome to provide input to the EBA submission by sending notes (in 'word' not PDF format) to eba@environmentbusiness.com.au. A core focus of the EBA submission will be on the need for an early and strong focus on energy efficiency, linking the new scheme with the renewable energy target, and the need for significant investment in national and regional interest infrastructure.

Contrasting views

A selection of the contrasting views in response to the publication of the Green paper follows:

• EBA would be looking for more detail in the white paper on strategies to help Australia "build its next competitive edge, based on clean energy, renewable energy and energy efficiency". [Fiona Wain, Environment Business Australia]
• Welcomed the provision to allow Australian companies to make use of Kyoto offsets (CDM and JI credits) to partially meet their obligations, but said it would have been preferable if the scheme also allowed Australian Kyoto units to be traded internationally. [Martijn Wilder, Baker & McKenzie]
• Businesses will need to be able to demonstrate they have a robust carbon management plan in place and be able to show key stakeholders, including investors, "how they have been able to respond to what is now an important financial risk for business". [Andrew Petersen, PricewaterhouseCoopers]
• We are pleased the Government has not moved to impose an arbitrary date for covering agriculture, but instead identified a target date of 2015 - pending the need to first overcome practical impediments of measuring, monitoring and verification of carbon emissions - with a decision on inclusion or exclusion to be considered in 2013. [National Farmers' Federation]
• Revenues from the proposed Carbon Pollution Reduction Scheme should be used not only to reduce Australia's own greenhouse emissions but also to fund Australia's fair share of assisting developing countries which are struggling to cope with the ongoing negative effects of climate change. [Make Poverty History]
• Emissions trading is about changing investment decisions, but the Government has taken every opportunity to protect the investments of polluters, from coal fired power stations to aluminium smelters to native forest loggers. The Government has its foot on the brake and the accelerator at the same time. [Christine Milne, Greens Senator]
• A "really good start", but setting aside up to 30% of permits for trade-exposed emissions-intensive industries "was a problem". [Greg Bourne, WWF]
• The scheme's emphasis on compensation for electricity generators would weaken its effectiveness. Polluting industries that have spent the last decade doing little or nothing to prepare for a carbon-constrained economy should not get a golden handshake. [Tony Mohr, Australian Conservation Foundation]
• A3P welcomes the Government's indication that the industry can contribute to reducing Australia's emissions through new forests, forest products and domestic production of paper. [Kim Creak, Chairman A3P]
• An "overriding concern" was to ensure the competitiveness of the trade-exposed, emissions-intensive industries. [Greig Gailey, President, Business Council of Australia]
• The Clean Energy Council supports a program for carbon pollution reduction, and highlights the need for complementary measures such as the 20% renewable energy target, a strong energy efficiency strategy, R&D funding and a plan for the upgrade of transmission infrastructure across the nation. [Rob Jackson, General Manager-Policy, Clean Energy Council]
• The Federal Government's assistance plan for coal-fired electricity generators may cause considerable concern for that industry. [Grant Anderson, Partner, Allens Arthur Robinson]
• We endorse the establishment of a carbon price cap in the initial stages of the Scheme, the recognition of the vulnerability of trade exposed emissions intensive industries to the unilateral imposition of a carbon price ahead of international competitors, and assistance for strongly affected industries and, the development and deployment of low emission technologies. We are however, disappointed that the elements of a measured transition do not embrace a more comprehensive phasing to full auctioning of permits, given that the European Union will not move to full auctioning until 2020. [Minerals Council of Australia]