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 Garnaut's trading scheme cops a bagging 

Garnaut's trading scheme cops a bagging

15 Jul, 2008 12:53 PM
One of the world's best-known economists, Jeffrey Sachs, has warned Australia against using an emissions trading scheme to tackle climate change, saying it would never win global support.

On the eve of the Rudd Government releasing its blueprint for emissions trading, Professor Sachs said the concept was "highly disliked" by China and other developing countries, and they would never agree to it.

Professor Sachs, economic adviser to United Nations secretary-general Ban Ki-Moon, and author of the best-seller The End of Poverty, made the warning yesterday at a conference at the Australian National University.

Standing alongside the Government's climate change adviser Ross Garnaut, who wants Australia to adopt emissions trading, Professor Sachs declared that:

• There would never be a global agreement to introduce emissions trading or carbon taxes to tackle climate change.

• The world instead should seek agreement on goals, and plans to develop and share new technologies, then leave each country to decide how much of the burden it would take on, and how and

• Australia should introduce a carbon tax as a simpler and less rort-prone system, and invest the proceeds in the development of new technology.

Professor Sachs said any attempt to get an international agreement had to start with the West assuring developing countries that their goals to achieve economic development would take priority over tackling climate change.

"I think nobody is going to like this (emissions trading), frankly," Professor Sachs told the ANU's annual China Update.

"It's such a mess administratively. It covers only a fraction of what needs to be covered.

"It's hard to implement. It's hard to monitor.

"It's not transparent, it's highly manipulative - which is why the banks love it.

"I can't ever believe we're going to get global agreement on these mechanisms.

"We're going to get agreement by showing a path, and saying to (nations like) China, that we understand that your desire to catch up (in living standards) is non-negotiable.

"Yes, we need (carbon) pricing.

"I actually believe it will come country by country, and not by a global agreement."

Professor Garnaut quickly disagreed, warning that without global agreement, every country would put its own interests first.

"China is an essential part of the solution to the problem," he said.

In a paper with ANU colleagues Frank Jotzo and Stephen Howes, Professor Garnaut warned that under business as usual, China's carbon dioxide emissions would more than treble by 2030 - when they would make up 37pc of global emissions, three times those of the United States.

"With China's emissions now growing at more than 10pc a year, they urged it to adopt the goal of cutting emissions growth to half the growth in GDP - slowing emissions growth to 3-4pc a year over the medium term."

But another world-renowned ANU climate change economist, Warwick McKibbin, endorsed most of Professor Sachs' critique, while warning that without a long-term carbon price, business would not invest to develop clean technology.

Prime Minister Kevin Rudd made a surprise appearance to close the conference, but steered away from any mention of climate change.

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HE is a giant who has many dwarfs about him. The ox is slow but the earth is patient. Never pee uphill into a breeze wearing thongs.
Posted by THE FARMER, 15/07/2008 6:14:05 PM
Change is absolutely essential and change takes leadership. Australia is providing that leadership but for the global ecosystem to be saved we need all the big populations on-board. We can only trust that the success we have in reducing Australia's emissions will show others they can and must join to put similar changes in place and hopefully agree on a new set of global rules. We did it for CFCs, we must do it for Carbon.

Professor Sachs's unhelpful grandstanding helps no-one, least of all the billions of people reliant on the UN for leadership.

Posted by graham brookman, 16/07/2008 2:47:50 PM
Introduction of a carbon tax with rebates of the tax to exporters and changing imports with a deemed carbon tax solves the problem. No need for the rest of the world to agree and no penalty for Australia's competitiveness.

You can read more detail in my submission to the Garnaut review. Of all the systems proposed so far, it is the only system that will work. http://www.garnautreview.org.au/C A25734E0016A131/pages/submi ssions-rd:-low-emissions-energy-t echnologies

Posted by Terry, 16/07/2008 5:47:43 PM
It could just be that China is about to lose face, and maybe quite a bit, with the whole world watching the Olympic Games. Then again they may prove to themselves that they can actually reduce emissions. Another thought is that pigs may fly too.
Posted by Will, 16/07/2008 7:04:59 PM
Professor Sachs is spot on. Any changes that we make must bring immediate tangible benefits for Australia, not for others at Australia's expense.
Posted by Ted O'Brien, 17/07/2008 8:06:08 AM

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Professor Ross Garnaut
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