Australia's Approach to Climate Action

A submission by the Productivity Commission to the Prime Ministerial Task Group on Emissions Trading was released today.

The submission examines the Stern Review's call for strong early action and discusses:

• the characteristics of a workable global solution, including the benefits to Australia from influencing the design of its rules;
• the frameworks and principles that should condition any interim national response; and
• the merits of emissions trading compared to carbon taxes, and major design issues for emission trading schemes.

The submission highlights the importance of ultimately achieving international action covering the largest emitting countries. ‘Given the comparatively high cost of achieving abatement in Australia and our minor contribution to the global problem, any national policy initiative needs to be calibrated to the prospect and nature of an international response,’ said Productivity Commission Chairman, Gary Banks.

The submission argues that climate change policy must be approached more systematically than the current ‘uncoordinated patchwork of policies’ across sectors and jurisdictions. Mr Banks stated: ‘There is much at stake for the Australian community in getting the right, nationally coherent, policy on climate change. This will require considerably more analytical work and public consultation’.