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Needed and inevitable - a price on carbon

By John Le Mesurier - posted Friday, 24 December 2010


Putting a price on carbon makes investment in the development and use of renewable technology attractive. Emission-free electricity can be and is generated from renewable sources such as wind, geothermal, tidal and solar. Given the present state of technology, a carbon price of $65/tonne makes electricity produced from wind and geothermal sources cheaper than any use of coal. Further geothermal produces base-load, continuous electricity.

If Australia’s CO2 emissions are not reduced, it risks international condemnation from those countries most at risk from the effects of global warming and particularly those countries making greater efforts to curb their emissions. It also risks being penalised for that failure, probably by having to pay a carbon tariff on its exports or some other penalty.

Without a price on carbon:

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  • cleaner technologies will not be used;
  • present inefficient use of electricity will persist;
  • investment in emission-free technology will not be made attractive;
  • CO2 emissions will not be effectively and efficiently reduced; and
  • international condemnation and penalties are likely to result.

Action needed

Climate scientists have repeatedly warned that if dangerous global warming is to be avoided, atmospheric CO2 concentration must be kept below 450ppm and if that is to be achieved, CO2 emissions must peak by 2015.

No more excuses. We can and must act now, doing so in a planned and timely manner that reduces effects on vulnerable household and other consumers while promoting production and use of the cleanest electricity available in the most efficient and effective manner. This means, at the very least:

  • Taking immediate steps to curb CO2 emissions through an ETS that requires government to set annual reduction targets and the market to place a price on carbon, initially through trading within Australia only.
     
  • Immediate action to review all relevant current policies, ensuring that they are consistent with reducing CO2 emissions and abandoning or rejecting those that are not.
     
  • Placing statutory obligations on the public sector, particularly publicly owned enterprises, to use electricity more efficiently, set targets for reducing consumption and report thereon annually.
     
  • Adopting uniform methods of measuring and verifying CO2 emissions and publishing annual and longer term targets for their reduction nationally and by each State and Territory and the extent to which targets are being met.
     
  • Publishing annual targets and the extent to which they have been met to ensure that 20 per cent of electricity consumed nationally is sourced from renewable sources by 2020.
     
  • Determining the effects on coal mining, distribution and user industries so as to provide appropriate training for those seeking other employment.

These measures are not onerous - or exhaustive. They can and must be taken if we are to rid ourselves of the morass of conflicting policies, more efficiently and effectively target our resources and meet international obligations to reduce our CO2 emissions.

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About the Author

John Le Mesurier born in Sydney and educated at State Schools, then TAFE where he completed a course in accountancy. John is now employed as an accountant with responsibility for audit and budget performance. He has no science qualifications but has read extensively on the topics of global warming and climate change, both the views of scientists and sceptics.

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Creative Commons LicenseThis work is licensed under a Creative Commons License.

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