Getting Out Of Hot Water
Sydney Morning Herald
Wednesday July 18, 2007
CARBON-POLLUTING industries are among the biggest contributors to global warming, so John Howard's belief, as enunciated yesterday, that the markets will drive any solution on climate change is surely a victory of hope over experience. Indeed, those very industries have been hard at work lobbying the Federal Government ever since it belatedly recognised climate change as an issue. That may explain why there were few surprises when the Prime Minister announced more details for a "cap and trade" carbon emissions trading scheme which had been foreshadowed in his emission task force report in May. There was no target for the cap. But he did outlined a "safety valve" emissions fee designed to limit unanticipated costs to the economy and business and the recognition of carbon abatement by firms before the scheme starts in 2012.
Much of Mr Howard's climate change policy announcement had been foreshadowed, giving it the appearance of a vote-chasing exercise. He did little to lessen the impression, appearing on the YouTube website with a $336 million scheme to provide solar water heaters at all Australian schools and later a $1000 rebate for home solar hot water systems, limited to 225,000 households.Such "on the ground" environmental initiatives are welcome and wily politics, but they do smack of being late for the parade. Labor's Peter Garrett was able to rain on Mr Howard's climate change credentials yesterday. Indeed, the Government awoke from its slumber only when Sir Nicholas Stern's report to the British Government looked at the problem from an economist's point of view.Australia is a major coal supplier and aluminium producer, so getting carbon trading right is important for the national economy. Further, a carbon trading scheme would also improve the economics of nuclear power. As we have said previously, Australia should not be shy in exploiting its abundant reserves of uranium and the Prime Minister's announcement of a $12.5 million investment collaborative research program between the Australian Nuclear Science and Technology Organisation and the nation's universities, is a sensible, albeit small, step.Significantly, Mr Howard also supported the next round of Kyoto talks in December but only if an agreed international target is "environmentally credible and economically achievable". In an election year, the PM must hasten on climate change but he needs to hasten slowly. Politicians should not confuse political expediency with policy, and keep in mind global warming will not end on polling day.
© 2007 Sydney Morning Herald