Government Releases Green Paper on Carbon Pollution Reduction Scheme. (July 16, 2008)

The federal Minister for Climate Change and Water, Senator Penny Wong on releasing the government's discussion paper for a "Carbon Pollution Reduction Scheme" said to the National Press Club:

We confront a daunting reality: we cannot continue to pour carbon pollution into the atmosphere as if there is no cost.

The 12 hottest years in history have all been in the last 13 years.

As one of the hottest and driest continents on earth, Australia’s economy and environment will be one of the hardest and fastest hit by climate change if we don’t act now.

Climate change threatens our food production, agriculture, and water supplies, as well as icons like the Great Barrier Reef, the Kakadu wetlands and the multi billion dollar tourism industries they support.

The Carbon Pollution Reduction Scheme is a response to climate change that is economically responsible, supports families and prepares Australia for our future challenges.

At the heart of the Carbon Pollution Reduction Scheme is emissions trading, in which the Government sets a limit on how much carbon pollution industry can produce, and then the Government sells permits up to that limit, creating an incentive to look for cleaner energy options.
“Companies can buy and sell permits from each other depending on how much they value them,
thereby enabling the market to find the most efficient ways to reduce carbon pollution.

The Government will ensure that every cent raised from the selling of permits will be used to help households and business as they make the move to a clean energy future.

Placing a limit and a price on pollution will change the things we produce, the way we produce them, and the things we buy. It will open new doors to a cleaner energy future.

In this Green Paper, the Government has sought to strike the right balance, on the basis of economically responsible policy in the national interest.

To offset the initial price impact on fuel associated with the introduction of the Carbon Pollution Reduction Scheme, the Government will cut fuel taxes on a cent for cent basis.

We will periodically assess the adequacy of this adjustment measure for three years and adjust this offset accordingly. At the end of the three year period the measure will be reviewed.

The Government will increase payments, above automatic indexation, to people in receipt of pensioner, carer, senior and allowance benefits and to provide other assistance to meet the overall increase in the cost of living flowing from the scheme.

We will also increase assistance to other low-income households through the tax and payment system to meet the overall increase in the cost of living flowing from the scheme.

Middle-income households will also get assistance to help them meet any overall increase in the cost of living flowing from the scheme.

Not unexpectedly Senator Wong gave the previous Coalition government, the current Opposition, a gentle back-hander: "After so many years of inaction, it is impossible for Australia to be in front of the rest of the world in tackling climate change. A greater risk is being left behind a world of emerging economic opportunities."