Professor Ross Garnaut Tables Draft Report on Climate Change. (July 4, 2008)

The near 550 page draft report is available online in format.

The key points are summarised as:

• Transport should be included in an emissions trading scheme and including as many sectors as possible will help spread the costs across the economy.

• $3 billion per year should be committed to low-emissions technology research and development and a new research council should be set up to coordinate this.

• An emissions trading scheme is the best option to reduce emissions as compared to a tax or hybrid scheme.

• Emissions permits should be sold competitively.

• The emissions trading scheme could have a transitional phase from 2010-2012 - during this time permits could be sold at a "low, fixed" price.

• The Building Australia Fund, announced in the May Federal Budget, should also be used for energy infrastructure.

• Energy Prices will rise under the scheme and will hit low-income households hardest - these households will need to be compensated.

• Half of the funds collected from the sale of permits can be used to compensate households through tax and social security payments.

• Australia should lead the way in making carbon capture storage commercially viable and to help Asia reduce their levels.

As Professor Garnaut writes in the preface of the report: "The Review was required to examine the impacts of climate change on the Australian economy, and to recommend medium- to long-term policies and policy frameworks to improve the prospects of sustainable prosperity... This draft report represents a detailed assessment of the implications of climate change for a single nation. It has built on the existing body of information in the fields of science and economics, and undertaken significant new work to illuminate the potential impacts on, and the most effective course of action for, Australia... Interested stakeholders were encouraged to respond to a series of five issues papers, a discussion paper on the proposed emissions trading scheme and an interim report released in January 2008...

"Issues of significance not considered in this draft report (such as the results of the economic modelling and the important issues of adaptation) will be further discussed in the supplementary draft report and the final report."

A one sentence summary?  "It's time to walk the walk."

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A government green paper on possible trading-schemes prior to drafting legislation is expected this month. According to Penny Wong, Minister for Climate Change and Water it will "take into account Garnaut's views".