Garnaut report

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From Brisbanetimes click here!

'Think big' on climate: Garnaut
July 4, 2008 - 12:47PM

An effective response to climate change must take shape and be in place in the next few years, the Federal Government's top climate change adviser says.

Professor Ross Garnaut's 600-page draft report on climate change, of which the make-up of an emissions trading scheme  is a major focus, was released today.

Speaking at the report's launch in Canberra, Professor  Garnaut said climate change was a "diabolical" policy problem.

"While an effective response to the challenge would play out over the many decades, it must take shape and be in place over the next few years," he said.

"Without early and strong action, some time before 2020 we will realise we have indelibly surrendered to forces that have moved beyond our control."

Professor  Garnaut said climate change was the hardest policy problem in living memory.

"Climate change presents a new kind of challenge,'' he said.

"It is uncertain in its form and extent, rather than drawn in clear lines.

"It is insidious, rather than directly confrontational.

"It is long term, rather than immediate in both its impacts and its remedies.''

Remedies will require global co-operation of unprecedented complexity and dimension, he said.

"We have much to contribute and much to lose as we face the diabolical policy challenge of climate change," Professor  Garnaut said.

Professor Garnaut said the increases in concentration of greenhouse gases in the atmosphere over the past two centuries, especially in the last half century, generated the climate change now being experienced.

"lThis is the result of economic activity in the countries including ourselves that are now rich," he said.

"The rapid increase in concentrations that are expected over the next several decades and which makes action to avert dangerous climate change urgent is primarily the result of activities in the developing countries that are becoming rich."

Professor Garnaut said it was not desirable nor remotely feasible to lower the climate change risk by substantially slowing the rise in living standards anywhere, least of all in the developing countries.

That approach would not be accepted by Australians or by the developing countries, he said.

The draft report also presents the early results of the review's economic modelling if no action is taken, Professor Garnaut said.

"On the middle-of-the-road impacts as defined by the science, these impacts which we subjected to modelling cut 4.8 per cent GDP by the end of the century, over $400 billion dollars in today's purchasing power, $400 million dollars per annum over, 5.4 per cent from consumption and 7.8 per cent from real wages.

"The modelling can cover only some of the benefits of climate change mitigation.''

Professor Garnaut said the increases in concentration of greenhouse gases in the atmosphere over the past two centuries, especially in the last half century, generated the climate change now being experienced.

"This is the result of economic activity in the countries including ourselves that are now rich,'' he said.

"The rapid increase in concentrations that are expected over the next several decades and which makes action to avert dangerous climate change urgent is primarily the result of activities in the developing countries that are becoming rich."

Professor Garnaut said it was not desirable nor remotely feasible to lower the climate change risk by substantially slowing the rise in living standards anywhere, least of all in the developing countries.

That approach would not be accepted by Australians or by the developing countries, he said.

--> Garnaut report External Link PDF

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From Couriermail click here!

Garnaut report: Climate fix to cost plenty

Garnaut report: Climate fix to cost plenty
Article from: Herald Sun

Peter Jean

July 04, 2008 01:18pm

FUEL prices would skyrocket under new plans to tackle climate change. However, poorer families would be cushioned from the full impact.
The government's climate change guru, Professor Ross Garnaut has called for transport to be included in an emissions trading scheme, setting the stage for fuel prices to spiral far beyond those caused by the current oil crunch.

The distinguished economist today released a draft report he prepared for the federal and state Governments on climate change and the introductions of emissions trading.

Prof Garnaut said low-income families should be compensated for higher fuel and power costs when the scheme was introduced.

He also said the Government should make payments to emissions-intensive industries which could lose jobs overseas if they had to cope with higher costs.

Under emissions trading, a cap will be placed on the amount of carbon which can be emitted into the atmosphere.

Companies will be able to purchase and trade permits which allow them to emit carbon gases.
Prof Garnaut said as many industries should be included in the scheme as possible, including transport.

He said the money the Government earned from the scheme should be spent on compensating low-income households and business.

"The direct price effects of the emissions trading scheme will be regressive,'' Prof Garnaut said.

"The effects will fall heavily on low-income households, so the credibility, stability, efficiency and longevity of the scheme require the correction of these regressive effects by other measures.''

Prof Garnaut said the coal industry should be given support to reduce carbon emissions and to develop technology which buried carbon gasses under ground.

He said international cooperation on fighting climate change was essential.

"The weight of scientific evidence tells us that Australians are facing risks of damaging climate change,'' Prof Garnaut said.

"The risk can be substantially reduced by strong and early action by all major economies.

"Without that action, it is probable that Australians, over the 21st century and beyond, will experience disruption in their prosperity and enjoyment of life, and to long-standing patterns in their

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From TrucknBus click here!

Include transport and fuel in emissions trading: Garnaut

Include transport and fuel in emissions trading: Garnaut

Pressure is mounting on the Rudd Government to include fuel in emissions trading and use revenue from carbon credits to support industries.

In releasing his draft report into climate change, Ross Garnaut told the National Press Club as many sectors as possible, including transport, must be included in the trading scheme, with all permits open to auction.

Garnaut, an economist advising the Government on the path it should take to mitigate carbon emissions, says the more industries included will reduce the burden on exposed industries.

"The more sectors included in the ETS, the more efficiently costs will be shared across the economy," Garnaut says.

"Transport should be included."

But in order to offset the costs to businesses, Garnaut says the Government should use about 30 percent of revenue from emissions trading "for structural adjustment needs" to assist the industry in transitioning towards a greener economy.

Furthermore, he is advocating 20 percent of funds be invested in research and development of low-carbon technologies, while calling for households to receive 50 percent of revenue to help with higher energy costs.

"The proceeds from the ETS should be allocated for purposes that will help Australia adjust to a low-emissions future," Garnaut says.

By allocating the majority of funds to households, Garnaut says consumers will be able to deal with rising energy and fuel prices that will come as a result of including both sectors in emissions trading.

However, the Government will need to invest about $3 billion in order to achieve Garnaut?s request for it to commit to low-emissions technologies.

The alternative, however, is bleak, according to the economist. He says if no action is taken, by 2100 climate change will result in a loss of around 4.8 percent of projected GDP and 7.8 percent of real wages.

It will have much more dire results for the agricultural industry in the shorter term, with Garnaut arguing there will be major declines in agricultural production by 2050 from unmitigated climate change.

"We are running out of time for effective global action, and it is important that we play our full part in nurturing the remaining chance," Garnaut says.

Despite rising fuel prices, transport industry groups are pushing the Government to follow Garnaut?s lead in calling for fuel to be part of emissions trading.

The Australian Trucking Association (ATA) says unless fuel is included, the Government will mandate other stringent regulations, such as certain engine requirements, which will cost the trucking industry a lot more than if fuel was included.

The Australasian Railways Association (ARA) is using emissions trading to champion the ability of rail to take hundreds of trucks from the road. ARA Chief Executive Brian Nye wants the Government to give trucking operators incentives for hauling more freight on rail.

Doing so, he says, will not only increase rail?s share of the freight task, but also reduce the need for the number of long-distance trucks as well as help the trucking industry contain cost pressures as a result of emissions trading.

However, the Government is declining to confirm whether fuel will be part of emissions trading as it comes under pressure from the Opposition to exclude it.