Bob's Report

Why are these and other similar climate impacts never mentioned by Government or Oppostion politicians when they are arguing about emission targets?

What does Professor Garnaut think of the Rudd Government’s White Paper?

Writing in the Sydney Morning Herald (19/12/08) the principal adviser to the government on national climate change policy, Professor Ross Garnaut, has appealed to the government to “keep the 25% option on the table” to avert dangerous climate change.

He argues: “Australia cannot play a strongly positive role in encouraging the global community towards the best possible outcomes if it has ruled out in advance its own participation in strong outcomes”.

He is even more critical of the government’s policy of compensating our biggest polluters: “There is no public policy justification for $3.9 billion in unconditional payments to electricity generators in relation to hypothetical future ‘loss of asset value’ ” and : “Never in the history of Australian public finance has so much been given without public policy purpose, by so many to so few.”

The White Paper’s proposal to issue free carbon permits to the steel, paper, pulp, and chemical industries of up to 45% of all permits issued, he condemns as a form of protectionism that could provoke other countries to retaliate. Fixing this, should be “an urgent matter for the restoration of global prosperity.”

How To Beat Climate Change ? Pay The Polluters !

On the same day they reported Professor Garnaut’s criticisms the SMH also examined the guidelines for subsidies payable to industries under the Carbon Pollution Reduction Scheme up to 2012, According to Ben Cubby, their environmental reporter: “The Federal Government will spend $9 billion cushioning industry against the impact of carbon trading over the next three years.”

33 production processes would be eligible: including cement, steel and iron making, lead, aluminium and zinc smelting, cardboard and newsprint production. Aluminium smelters, steel and cement will have 90% of their carbon emissions covered by free permits. Alumina refining, liquid natural gas and petrol refining could be given free permits for 60% of emissions.

The Australian Conservation Foundation (ACF) has commissioned a study by Innovest Strategic Value Advisors that lists the top 30 recipients and the amounts of compensation they would receive under the emissions trading scheme. Some of the biggest winners are: Rio Tinto $620 million per year, Alcoa $228 million and Woodside $109 million. (Rio Tinto’ payments over two years amount to more that the Federal Government’s entire renewable energy fund). Our dirtiest power stations have not been forgotten. Over five years Hazelwood (Vic) would receive $990 million, Gladstone (Q) $152 million, and Bayswater (NSW) $131 million.

ACF comments: “This analysis suggests the big polluters got what they wanted from the White Paper”.