Media release

Climate change - our biggest threat

Canberra, 25 January 2005

Climate change is the single biggest threat facing the world - and it is already affecting many countries.

Action to intensify steps to reduce greenhouse gas emissions either by abatement or mitigation is urgently needed and the International Taskforce on Climate today released their far-reaching report "Meeting the Climate Challenge".

Environment Business Australia (EBA) applauds the common-sense approach and the practical suggestions of the Taskforce. The report highlights ways that developed and developing countries can approach the task of reducing greenhouse gas emissions by 50% to 80%. These deep cuts are needed in order to avoid global average temperatures rising more than 2 degrees Centigrade above pre-industrial levels, which scientists say, could tip the world into climate chaos.

"Achieving these cuts will be extremely difficult under a business as usual scenario, but the rapid deployment of existing technology and research into further energy efficient and renewable energy could provide the solution. Industry's innovation can rise to this challenge but requires governments and international institutions to help with an enabling framework", said Fiona Wain, CEO of Environment Business Australia.

The Climate Taskforce's report coincides with EBA's submission to the Productivity Commission (24 January 2005) regarding the National Competition Policy Reforms. EBA's recommendations included the internalisation of negative externalities and steps that governments can take to fast-track action to combat climate change.

The Australian environment industry particularly welcomes the Climate Taskforce's recommendation for a domestic cap and trade emissions trading system which could potentially link Australian emissions reduction efforts and carbon credits with the EU Emissions Trading Scheme.

Note to editors and journalists

In December, EBA released a discussion paper at the CoP10 climate change talks in Buenos Aires, the paper calls for industry and government 'tools' to fast-track technology capable of reducing GHG emissions. This paper and EBA's submission to the Productivity Commission are available at www.environmentbusiness.com.au

Regarding competition policy EBA focused on five critical and synergistic reform elements required:

Internalising the costs of negative externalities with flow-on effects of reducing "collateral damage" and its drain on consolidated revenue
Full cost recovery pricing creating equity balance where market leaders in sustainability are not undermined by competitors who are poor performers
An enabling Government framework that encourages innovation and its commercialisation
Providing markets with timely and meaningful intelligence and signals
Public enterprises and operations to operate to the same standards as are demanded of the private sector