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Published by Climate Spectator.
This week, the Labor government’s Multi-Party Climate Change Committee (MPCCC) agreed to a set of principles to guide the development of a national carbon-pricing model. While a carbon pricing legislation is a worthy pursuit that will make fossil fuels more expensive, we must not forget that a carbon price alone is not enough to deal with the climate crisis. The mechanism has several limitations that inhibit the deployment of clean energy infrastructure.
Earlier in the year the Head of the Energy Technology Policy Division for the International Energy Agency Peter Taylor argued, “…a price on carbon is needed to send a strong signal to the market, but it’s unlikely this will be enough to transform our energy system. Other policies will be needed to support technology development and deployment.” To ensure effective climate change mitigation and the transformation of our energy system, the Gillard government and MPCCC must be cognisant of the limitations of carbon prices and include additional policies in next year’s climate and energy agenda.
The best public policy approach is to reverse the hierarchy between carbon price and the so-called ‘complementary measures’, such as a feed in tariff, efficiency standards, public infrastructure investments and industry development. An effective carbon price will be the measure that best complements a whole-of-sector reform plan for energy generation, distribution and consumption. After all, Australia must effectively transition its whole energy system to renewable sources as soon as possible.
At the weekend, The Age reported that increased alcohol prices are driving many young people* to switch to the party drug ecstasy.
A new phenomenon of young people ‘switching’ to the increasingly cheap party drug ecstasy has been fuelled by rising alcohol prices, according to drug researchers, nightclub owners and the people themselves…
‘It is cheaper and convenient to use pills,’ said Professor Jake Najman, director of the University of Queensland’s Alcohol and Drug Research and Education Centre. ‘A lot of young people are making that choice to switch between alcohol and ecstasy. Pills can be cheaper, there is no question.’
Many readers will be thinking ‘what the hell does ecstasy have to do with climate change policy?’—the frequently discussed topic of this blog. The answer is simple: the case highlights the unintended consequences of pricing-based policy and the substitution effect.
Published at Crikey’s environment blog, Rooted.
It’s time for the government and climate change advocates to stop obsessing over carbon pricing and get behind an investment-centred climate policy.
Polling released last week, as PM Gillard announced the members of her government’s Carbon Pricing Climate Change Committee, showed that just 37% of Australians think it is very important to implement an ETS (or other carbon-pricing measures) to address climate change. When we consider the prominence of emissions trading in contemporary climate change policy debates in Australia, it is fair to say the measure is still struggling to win strong public support.
Published by the ABC, Australia’s National Broadcaster.
Fresh questions about the efficacy of an emissions trading scheme have been raised, after a new analysis by the UK-based non-government organisation, Sandbag, revealed major flaws with the European Union’s emissions trading scheme. This comes as the debate about climate change policy and carbon pricing gathers pace in Australia.
The Cap or Trap? (pdf) report finds that the second phase of the European ETS will fail to deliver significant carbon reductions. This will be a surprising outcome for many Australians who have been led to believe that emissions trading is ‘decarbonising’ Europe. According to report author Damien Morris:
…the ETS is on course to require savings of, at best, a miniscule 32 million tonnes of emissions between 2008-2012, despite covering 12,000 installations and 1.9 billion tonnes of emissions annually. Regulating a single power station over the same period could have had a greater impact.
Published by The Punch.
The drama of the 2010 federal election came to an end as the independent MPs Rob Oakeshott and Tony Windsor threw their support behind Labor. This has an immediate impact on Australian climate policy.
A Gillard minority government promises a new cross-party Climate Change Committee to spearhead carbon-pricing legislation in the next term of government. This agenda will face stiff opposition, but with the right design, it can help move Australia towards a low-carbon economy.