Greg Combet has urged the Greens to change their hardline position in order to secure an outcome from the multi-party climate change committee.
In a speech in Melbourne, the Climate Change Minister said the Greens’ rejection of the Carbon Pollution Reduction Scheme - which he said would have reduced carbon pollution by 2020 by at least 144 million tonnes on what is currently forecast - had not received adequate attention.
And he said he “looked forward” to the Greens setting aside the “primacy” of their reductions targets to consider the economic impacts of public policy aimed at pricing carbon.
The Greens have previously argued for a 40 per cent cut in greenhouse gas emissions by 2020, but were prepared to talk about a phased approach that began at an unconditional reduction of 25 per cent.
They will also have the critical say in passing a legislated carbon price when they pick up the balance of power in the Senate after June 30 next year.
“The fact that the Greens blocked the CPRS three times has also received surprisingly little analysis and attention. The CPRS was a cap and trade emissions trading scheme that would have delivered quantifiable and significant reductions in pollution,” Mr Combet said today.
“The Greens wanted stronger targets and deeper cuts in pollution and less transitional support for industry. Now that their focus on the primacy of their targets appears to have been set aside, and they have joined the Government’s Multi-Party Climate Change Committee, I look forward to their involvement in consideration of the real economic impacts of public policy in this area.”
“From the Government’s standpoint, we are steadfastly committed to a responsible economic and environmental reform.”
Mr Combet also expressed no preference for the mechanism used to price carbon, saying the committee would explore a number of options.
“It will consider mechanisms for introducing a carbon price including a broad based emissions trading scheme, a broad based carbon levy, a hybrid of both, and economy-wide and sector-based approaches. We will consider issues such as coverage, international linking, implementation issues, assistance measures for households and businesses and review provisions,” he said.
The Climate Change Minister also tried to combat Opposition claims the committee would push up power prices, by claiming not taking action to price carbon would be more damaging to the economy.
“Opposition to a carbon price will force up electricity prices,” he said.
“A delay in implementing a carbon price raises transitional costs for Australia and negatively affects investment in critical industries, in particular in the power sector.”
But Greens deputy leader Senator Christine Milne reprimanded Mr Combet for bringing up the Greens’ opposition to the CPRS, arguing it was a flawed response to the climate change challenge and a “recipe for disaster”.
“I note that Minister Combet, in a speech this morning, is harking back to the Carbon Pollution Reduction Scheme. He would be better to leave it dead, buried and cremated as it was what Professor Garnaut called ‘one of the worst examples of policy making we have seen on major issues in Australia’” she said.
“The CPRS would have sent a signal to the energy sector in Australia that they did not have to change a thing and could continue investing in polluting infrastructure - something that would have been a recipe for disaster.
“The new multi-party climate committee, established as part of the agreement by the Greens to support the Gillard government, will return to a principled process and I look forward to a principled outcome as soon as possible.”
