Recommendations
Recommendation 1
The Committee recommends that the Commonwealth Government make a strong
public statement on its position on the science of climate change and
initiate an awareness raising campaign to communicate the issue of climate
change to the broader community.
Recommendation 2
The Committee recommends that adequate funding be provided to:
- enable the CSIRO to continue work on the underlying science of
climate change;
- work on the nature of potential impacts of climate change in the
Australasian region, possibly through new or existing CRCs; and
- work on the potential social, economic and environmental costs
of the impacts of climate change on Australia, particularly at a regional
level.
- Recommendation 3
- The Committee recommends that Australian universities be encouraged
to establish departments and courses that focus on atmospheric or climate
change science, and that funding be provided to support such initiatives.
- Australian Democrats Recommendation 1
- The Australian Democrats recommend that a minimum of $100 million
in funding should be provided over the next four years for climate change
science.
Chapter 3 - The Framework Convention on Climate Change and the Kyoto
Protocol
Recommendation 4
The Committee recommends that future work undertaken by ABARE on the
economic impact of climate change and greenhouse gas abatement should:
be subject to wide-ranging peer review to ensure open and objective
reporting; and
incorporate opportunities for low cost and negative cost abatement.
Recommendation 5
The Committee recommends that strict rules to govern the use of carbon
sinks should be included in any emissions trading framework developed
by the Parties to recognise the uncertainties in measurement and the long
term security risks.
Recommendation 6
The Committee agrees that the integrity of the Kyoto Protocol rests
on its ability to deter non-compliance and recommends that the Australian
Government works with the Parties towards the adoption of firm sanctions
for non-compliance.
Recommendation 7
The Committee recommends that the Australian Government support the
development of a reporting mechanism under the Kyoto Protocol which will
identify and assist those Parties falling behind in Protocol emissions
targets.
Recommendation 8
The Committee recommends that credit for activities should only be
provided for activities that are additional to those which would have
been undertaken under a `business as usual' situation.
Recommendation 9
The Committee recommends that the Commonwealth Government oppose in
future international negotiations, any proposals for the inclusion of
nuclear technology in the Clean Development Mechanism.
Australian Democrats Recommendation 2
The Australian Democrats recommend that the Commonwealth Government
oppose in future international negotiations, any proposals for the inclusion
of clean coal or sinks in the Clean Development Mechanism.
Recommendation 10
The Committee recommends that the Commonwealth Government take a leadership
role in international negotiations on climate change, with a view to moving
through Australia's treaty-making process in a timely manner to achieve
ratification of the Kyoto Protocol, including:
- urging other countries to ratify the Protocol;
- starting to work constructively with developing countries to encourage
them to adopt binding targets as soon as possible and to ensure global
emissions constraints; and
- ensuring adequate targets are in place beyond the first commitment
period to stabilise atmospheric concentrations of greenhouse gases.
Chapter 4 – Australia's Greenhouse Performance and Strategy
Recommendation 11
The Committee recommends that the first report on the progress of
the National Greenhouse Strategy, which is to be tabled in Parliament
in early 2001, should:
- include an assessment of the progress, implementation and effectiveness
of each measure;
- include an estimate of emissions reductions for each measure;
- clearly identify where information is lacking and progress remains
unsatisfactory, and
- assess performance against prior pledges, including performance
against expected emissions reductions.
Recommendation 12
The Committee recommends that the major review of the National Greenhouse
Strategy currently planned to be conducted during 2002 be brought forward
to 2001 to immediately follow the release of the first report.
Recommendation 13
The Committee recommends that the Commonwealth Government incorporate
the reduction of greenhouse emissions as a central objective across the
whole-of-government and in all policy formulation. All relevant areas
of Government, including transport and treasury, should be required to
include greenhouse abatement in policy development and report on progress
in their annual reports.
Recommendation 14
The Committee recommends that all agencies of the Commonwealth Government
be required to develop quantified emissions reduction targets for all
emissions from their operations.
Recommendation 15
The Committee recommends that performance against emissions targets
should be monitored, independently and transparently assessed, and reported
in annual reports.
Recommendation 16
The Committee recommends that government develop greenhouse accounting
tools for the private sector and provide tangible recognition and encouragement
to those organisations which apply in-house mechanisms such as emissions
trading or de-facto carbon taxes.
Australian Democrats Recommendation 3
The Australian Democrats recommend that the Commonwealth Government
apply a tax on all energy used within its departments at the rate of $10/tonne
of CO2. These funds should be allocated to investments in emissions reduction
for Government operations. Agencies could be allowed to determine how
they spend those funds, or unallocated funds be allocated to the Australian
Greenhouse Office to invest in the most cost- and greenhouse-effective
manner. The Australian Democrats recommend that state and local governments
be encouraged to match this measure.
Recommendation 17
The Committee recommends that the states and territories set out emissions
reduction benchmarks and objectives for all relevant areas of government.
Areas such as energy use, buildings and planning, transport and vehicle
fleets, and administrative services should be a priority. Performance
against such benchmarks should be regularly, transparently and independently
assessed.
Recommendation 18
The Committee recommends that state and territory governments adopt
the reduction of the greenhouse intensity of energy supply and transport
as a key criteria in the assessment of new projects.
Recommendation 19
The Committee recommends that states and territories with outstanding
implementation plans submit them to the Commonwealth by the end of 2000.
The plans should, at a minimum, outline the measures they will implement
under the National Greenhouse Strategy, any additional measures they will
undertake, progress towards and timelines for their completion, and estimates
of the emissions savings from the measures.
Recommendation 20
The Committee recommends that the states and territories support their
greenhouse plans with adequate levels of budgeted funding.
Recommendation 21
The Committee recommends that the Commonwealth take a leadership role
in facilitating the states and territories, industries and other key groups
to set clearer directions on greenhouse abatement, based on what their
`fair share' of emissions limits under Kyoto and subsequent commitments
is, and in particular:
- to assist parties to improve monitoring and accountability of greenhouse
abatement performance, to identify trends and to evaluate performance
against benchmarks (such as greenhouse gas emissions as a proportion
of Gross State Product); and
- to assist industry to achieve `world's best' emissions levels per
unit while preparing for a carbon constrained future.
Recommendation 22
The Committee recommends that the Commonwealth Government make further
efforts to assist smaller state and territory governments or regional
communities develop greenhouse strategies and responses. The Committee
recommends that the Commonwealth Government improve communications, dialogue
and technical cooperation between the Commonwealth and the states and
territories.
Recommendation 23
The Committee recommends that a clear strategy be developed and coordinated
at the national level to effectively communicate the issues associated
with greenhouse gas emissions and climate change to the broader community.
Recommendation 24
The Committee recommends that all levels of government take responsibility
for raising awareness about climate change and current greenhouse gas
abatement policies and programs.
Chapter 5 – Energy Use and Supply
Recommendation 25
The Committee recommends that the Commonwealth and the states and
territories seek greater transparency from large electricity consumers
about the prices they pay for electricity if those prices are fixed outside
the pool.
Recommendation 26
The Committee recommends that state and Commonwealth governments seek
to publicly disclose details of any arrangements under which public monies
are effectively subsidising large industrial users through the provision
of low electricity prices.
Recommendation 27
The Committee recommends that the states ensure that any future privatisation
plans are the subject of full and open public debate and take account
of the potential greenhouse implications of the sales. Prices should reflect
a future market which is likely to be constrained by mandatory pressures
to reduce emissions.
Recommendation 28
The Committee recommends that a national strategy be developed to
reduce the emission intensity of, and constrain the growth in overall
emissions levels, from the electricity generation sector. Such a strategy
should include national emission intensity standards for electricity generators.
Recommendation 29
The Committee recommends that the states and territories agree to
set mandatory targets to progressively increase the total proportion of
electricity generated from efficient power plants and low greenhouse intensity
fuels.
Recommendation 30
The Committee recommends that the Council of Australian Governments
designate the reduction of harm to the environment as a goal of ongoing
energy market reform, with a specific requirement for the reduction of
the greenhouse intensity of power generation.
Recommendation 31
The Committee recommends that the National Competition Council incorporate
benchmarks for the reduction of the greenhouse intensity of power generation
into its assessment of governments' progress on national competition policy
reforms.
Recommendation 32
The Committee recommends that the Government, the National Electricity
Code Administrator and the Australian Competition and Consumer Commission
work closely with the cogeneration industry to ensure that transmission
pricing regimes truly reflect the costs and distance of transmission and
contain no biases against embedded generation and cogeneration.
Recommendation 33
The Committee recommends the immediate introduction of amending legislation
that will designate greenhouse gas emissions as matters of national environmental
significance under the Environmental Protection and Biodiversity
Conservation Act 1999, and that it be designed so as to incorporate
new projects, capacity expansions and recommissioned plant that would
produce large amounts of new emissions sources.
Recommendation 34
The Committee recommends the proposed addition of a greenhouse trigger
to the Environmental Protection and Biodiversity Conservation
Act 1999 be designed to ensure that transmission augmentation
projects which will have a significant impact on electricity emissions
will be subject to environmental impact assessment.
Recommendation 35
The Committee recommends that the introduction of a greenhouse trigger
be accompanied by the announcement of general principles or other policy
objectives that will guide the assessment of new projects.
Recommendation 36
The Committee recommends that a full evaluation be made of the long
term greenhouse emission impacts of the Basslink project.
Recommendation 37
The Committee recommends that any decision to proceed with Basslink
take into account the impact of the NEM reforms agreed to by the Australian
governments under the National Greenhouse Strategy.
Recommendation 38
The Committee recommends that Australian governments streamline and
coordinate their processes for developing and implementing world's best
practice energy efficiency standards for products, manufacturing processes
and building design, with a view to the earliest possible adoption of
world's best practice standards.
Recommendation 39
The Committee recommends that Australian governments at all levels
expand awareness programs for consumers, business and industry and encourage
the development of expertise in energy efficiency solutions and programs.
Recommendation 40
The Committee recommends that the inclusion of energy efficiency and
greenhouse considerations into the Building Code of Australia be given
priority for implementation.
Recommendation 41
The Committee recommends that the Government set a target for the
Australian renewable energy industry to capture 5 per cent of the global
renewable energy market by 2015, and designate renewable energy as a strategic
industry.
Recommendation 42
The Committee recommends that the Commonwealth Government in consultation
with the industry develop an aggressive industry development program for
the Australian renewable energy industry.
Recommendation 43
The Committee recommends consideration of a range of options for the
renewable energy industry including tax incentives, R&D grants, market
and regulatory reforms and continuing assistance with commercialisation.
Australian Democrats Recommendation 4
The Australian Democrats recommend that carbon levy revenues also
be considered as a source of funds for renewable energy programs.
Recommendation 44
The Committee recommends that the Commonwealth set up specific programs
under Austrade and Ausaid to promote the export and transfer of Australian
and sustainable energy technology to developing countries.
Australian Democrats Recommendation 5
The Australian Democrats recommend that the Commonwealth Government
conduct studies to identify the full costs of energy supply on a regional
and time basis and that, where prices are below those costs, make compensating
subsidies available to sustainable energy alternatives in those areas
or satisfying loads at those times.
Australian Democrats Recommendation 6
The Australian Democrats recommend that Australian governments prepare
to set time frames to replace coal-fired power with a mixture of gas and
renewables, with the proportion of renewable energy steadily increasing
until the Australian economy is predominantly based on renewable sources
some time after 2050.
Chapter 6 - Transport Emissions and Solutions
Recommendation 45
The Committee recommends that the Bureau of Transport Economics' report
on the economic policy instruments relating to transport be made public
immediately. The Committee recommends that the planned meeting of transport
ministers to consider the report be broadened to include the respective
environment ministers and/or ministers responsible for greenhouse issues.
Recommendation 46
The Committee recommends that the Commonwealth work with the states
to consider the following measures proposed by the Institute for Sustainable
Future University of Technology, Sydney:
- strengthen the role of Departments of Transport and/or Urban Planning
in integrated transport solutions;
- increase taxes on car parking in centres that are well served by
public transport;
- create and enforce an extensive network of transit lanes in cities;
- a national system of mass and distance charges for heavy trucks
travelling in Australia's populous zone;
- integrated ticketing and fares for public transport within cities;
- local consultative committees in local government areas with the
aim of improving local public transport services and use;
- improve funding for cycleways and bicycle parking at key local
destinations; and
- create incentives for ownership and use of low-emission vehicles,
including low-speed electric motor-assisted vehicles (such as scooters
and buggies).
Recommendation 47
The Committee recommends that the Government carry out a review of
Fringe Benefits Tax legislation to remove the incentive for employers
to include motor vehicles for private use in salary packages, to remove
financial rewards for travelling more kilometres in a vehicle under a
novated lease, and to generally remove barriers to employees using alternatives
to single occupancy of cars in commuting.
Recommendation 48
The Committee recommends that the Government introduce Fringe Benefits
Tax deductions for the inclusion of public transport and cycling commuting
expenses in salary packages.
Recommendation 49
The Committee recommends that public transport fares be considered
for exemption from (or zero rated for) GST.
Recommendation 50
The Committee recommends that the proposed new Energy Credit Scheme
be used to gradually phase out diesel fuel rebates and credits. The Committee
supports the use of other greenhouse-neutral compensatory measures to
ensure that such a phase-out does not lead to greater hardship in rural
and remote areas.
Recommendation 51
The Committee recommends that a national strategy be developed with
vehicle manufacturers to increase the availability of alternative fuel
vehicles.
Recommendation 52
The Committee recommends that agencies be encouraged to purchase alternative
fuel and hybrid electric petrol vehicles as they replace their fleet and
as one mechanism to achieve efficiency targets.
Recommendation 53
The Committee recommends that the Commonwealth Government facilitates
joint purchasing arrangements for Commonwealth agencies to exercise maximum
leverage over Australian manufacturers in providing fuel-efficient cars.
Recommendation 54
The Committee recommends that the Government, in consultation with
the states, develop a communications strategy to educate consumers about:
- the benefits of using public transport, walking and cycling;
- the benefits of cleaner, quieter, more fuel-efficient vehicles;
- the whole-life environmental impacts of second hand vehicles; and
- the benefits of better vehicle maintenance and `greener' driving.
Recommendation 55
The Committee recommends that a review be conducted to identify opportunities
to improve environmental outcomes in vehicle maintenance, particularly
in relation to frequency, service standards and personnel training.
Recommendation 56
The Committee recommends that the Commonwealth Government cooperate
with the states in developing proposals for new and improved rail infrastructure
and services. Costings should include quantified greenhouse reductions
and other health and pollution mitigation benefits.
Recommendation 57
The Committee recommends that the Commonwealth Government commit to
provide substantial funding for new urban as well as regional rail infrastructure
and improvements to existing infrastructure as part of a cooperative strategy
with the states.
Recommendation 58
The Committee recommends that the Commonwealth Government cooperate
with the states and territories in assessing priorities for the improvement
of interstate mainline rail infrastructure, with a view to improving rail
competitiveness and efficiency in the carriage of both passengers and
freight. The assessment should consider needed improvements in track speeds
and weight thresholds, improvements in access to ports, industrial sites
and population centres, improvements in training and expertise, and ownership
and organisational structures.
Recommendation 59
The Committee recommends that the Commonwealth Government work with
state and local governments to urgently assess needs for new and improved
public transport infrastructure and services as an additional measure
to the `forum' set up under the National Greenhouse Strategy and to be
completed within 3 years.
Recommendation 60
The Committee recommends that the Commonwealth Government work with
state and local governments to scope and develop new public transport
proposals (including quantified projections for savings in greenhouse
emissions) and develop cooperative long term funding models with the aim
to achieve firm commitments to realise major new projects in the short-to
medium-term.
Recommendation 61
The Committee recommends that the Commonwealth adopts integrated transport
planning so that all transport funding proposals include an assessment
of environmental impacts and alternative transport solutions. Funding
allocation decisions should be based on clear and accepted principles,
and be subject to the highest standards of transparency and accountability.
Recommendation 62
The Committee recommends that the consideration of bikeways and pedestrian
access be required for all new Commonwealth-funded road construction.
Australian Democrats Recommendation 7
The Australian Democrats recommend that the Commonwealth Government
review the current road and transport funding model, with a view to incorporating
road funds into a common transport fund. This common fund should be drawn
on for a whole range of investments and projects: urban and interstate
rail, public transport, major roads and cycling infrastructure. Greenhouse
abatement, and the development of new rail and public transport infrastructure,
should be priorities in the allocation of monies from such a fund. Allocation
decisions should be based on clear and accepted principles, and be subject
to the highest standards of transparency and accountability.
Recommendation 63
The Committee recommends that greenhouse abatement and other environmental
goals be incorporated into transport policies, and taxation and planning
policies which affect transport, as fundamental and governing priorities.
Recommendation 64
The Committee recommends that Commonwealth, state and local government
should adopt challenging quantitative emissions reduction targets for
their fleets within 2 years and that business be encouraged to do likewise.
Recommendation 65
The Committee recommends that work be undertaken to ensure the regular
and comprehensive reporting of transport statistics such as passenger
motor vehicle and public transport usage, walking and cycling patterns,
safety, rail and road freight, etc.
Chapter 7 – Carbon and the Land
Recommendation 66
The Committee recommends that the approach taken by the Government
to international negotiations on the inclusion of sinks should be based
on the following principles:
- that sinks activity in the Clean Development Mechanism should be
consistent with the principles of ecological sustainability and that
appropriate project guidelines be included to minimise potential adverse
socioeconomic and environmental impacts;
- the sinks activity in the Clean Development Mechanism should complement
other activities to reduce emissions at source;
- that the credibility of the use of sinks relies on the credible,
verifiable, and transparent recording and reporting of changes in carbon
stocks and/or changes in greenhouse gas emissions by sources and removals
by sinks;
- that sink activities undertaken for climate change mitigation purposes
should not result in native forests being cleared to establish plantations;
and
- that it is desirable for the second commitment period to start
immediately after the first commitment so that reporting on sink activities
is contiguous.
Recommendation 67
The Committee recommends that regular briefings for all stakeholders
are held on the progress of the National Carbon Accounting System and
the outcomes of work as it is finalised.
Recommendation 68
The Committee recommends that steps be taken to ensure that no native
forest/vegetation is cleared for the purpose of establishing carbon sinks,
that no tradeable carbon credits be allocated under a domestic emissions
trading scheme where this has occurred, and that an emissions debit be
recorded.
Recommendation 69
The Committee recommends that the Tasmanian Government, in cooperation
with local councils, farmers organisations and the forestry industry investigate
the concerns about plantation developments raised by the Native Forest
Network Southern Hemisphere.
Recommendation 70
The Committee recommends that the Government, in consultation with
all stakeholders and the forestry industry, undertake a public inquiry
into the potential for plantations as a carbon store, including an assessment
of the broader regional environmental, social and economic implications.
Recommendation 71
The Committee recommends that any approach taken to credit carbon
sinks should take into account uncertainties surrounding the international
debate and should be consistent with any international framework.
Recommendation 72
The Committee recommends that the incorporation of carbon credits
in a domestic emissions trading system be limited to Kyoto eligible sinks
and:
- subject to monitoring and reporting requirements consistent with
the Kyoto Protocol;
- subject to an independent verification process to ensure transparency
and credibility of reports;
- subject to permanence and biodiversity requirements; and
- complemented by activity aimed at reduction of emissions at source.
Australian Democrats Recommendation 8
The Australian Democrats recommend that a cap be set on the number
of sinks credits that any one company or country can use to offset emissions.
Australian Democrats Recommendation 9
The Australian Democrats recommend that credits are issued based on
a `tonne year accounting approach' after third party assessment of the
sequestration and under clear monitoring provisions.
Recommendation 73
The Committee recommends that sink rules comply with the Convention
on Biological Diversity and that activity in native forests, woodlands
and rangelands that threatens biodiversity protection, be explicitly excluded
from eligibility for carbon credits under a domestic emissions trading
system.
Australian Democrats Recommendation 10
The Australian Democrats recommend that reforestation and afforestation
credits are only made available for plantings that enhance local biodiversity
and are not detrimental to water sources.
Recommendation 74
The Committee recommends that the Australian Greenhouse Office coordinate
the development of a National Policy Framework for Greenhouse Sinks, which:
- is developed in partnership with state and territory governments
and relevant stakeholders; and
- is informed by the outcomes of the international negotiations on
the scope of sink activities to be included in the Kyoto Protocol.
The policy framework should identify principles to guide the establishment
of sink activities and consider, but not be limited to:
- the protection and enhancement of the native forest estate and
native vegetation;
- the impact on the environment of plantations versus environmental
plantings or revegetation;
- socioeconomic impacts on regional and rural communities;
- opportunities for the facilitation and development of new industries
particularly in regional communities;
- the opportunities for broadscale activity to address significant
environmental issues such as dryland salinity, land clearing, and sustainable
land management;
- how sink activities may best be integrated with existing land uses
such as grazing;
- legislative mechanisms for the recognition of carbon rights;
- cost effectiveness of the range of sink activities; and
- the role of partnerships in achieving outcomes.
Recommendation 75
The Committee recommends that a National Policy Framework for Greenhouse
Sinks do the following:
- give priority to actions that will protect and enhance the native
forest estate and native vegetation;
- provide for research and development into native species reforestation
and revegetation activities which enhance carbon sequestration;
- provide funds for rural strategies that will facilitate greenhouse
abatement and broader environmental outcomes such as the establishment
of fuel plantations in salinity affected areas, and biomass based cogeneration
plants for agro-industrial plants in rural regions;
- set out the accounting framework to be used and establish an independent
verification process; and
- establish the framework for the trading of carbon credits domestically
and define the range and scope of sink activities that will be recognised
in a national emissions trading system.
Recommendation 76
The Committee recommends that Australian government, industry and
scientific community should continue to monitor research into alternative
methods of carbon sequestration, and to support it where such methods
seem promising and prudent.
Recommendation 77
The Committee recommends that the reduction of greenhouse gas emissions
from agricultural production be a focus of the Natural Resource Management
Strategy currently under development.
Recommendation 78
The Committee recommends that a greater level of support be sought
from governments and industry for research and development in emissions
reduction opportunities in the livestock industries. This could be facilitated
by provision of seed funding by the Commonwealth or matching funding from
the Commonwealth to industry funds.
Recommendation 79
The Committee recommends that the Standing Committee on Agriculture
and Resource Management (SCARM) work program be enhanced with the aim
of:
- improving understanding of agricultural producers about greenhouse;
- involving agricultural producers in identifying options and solutions;
and
- identification of options where sustainable land management leads
to reductions in emissions and greater productivity.
Recommendation 80
The Committee recommends that greater attention and priority be given
by all governments to meet the objectives of National Greenhouse Strategy
relating to agricultural management practices.
Recommendation 81
The Committee recommends that the Commonwealth, states, and territories
introduce strong national controls on land clearing as a matter of urgency.
Recommendation 82
The Committee recommends the Commonwealth act with some urgency to
provide protection for `of concern' regional ecosystems, and provide compensation
to landholders where warranted.
Recommendation 83
The Committee recommends that the Commonwealth allocate funds for
rural strategies that assist in greenhouse responses such as fuel plantations
in salinity affected areas and biomass-based cogeneration plants for agro-industrial
plants in rural regions.
Chapter 8 – The Greenhouse Challenge
Recommendation 84
The Committee recommends that the Greenhouse Challenge Program:
- establish benchmarks for emissions abatement by sectors of activity;
- assess participants in relation to relevant benchmarks; and
- assess participants in relation to Australia's overall target.
- Recommendation 85
- The Committee recommends that the Australian Greenhouse Office
develop its capacity to verify and compare the emissions output of individual
enterprises to sectoral benchmarks and make these sectoral benchmarks
publicly available.
- Recommendation 86
- The Committee recommends that the Greenhouse Challenge Program
require participants to develop their emissions forecasts using business
as usual methodologies.
- Recommendation 87
- The Committee recommends that all companies be required to verify
assessments of Greenhouse Challenge Program emissions savings and to
publicly disclose details.
- Recommendation 88
- The Committee recommends that any changes to the level of forecast
emissions savings by Greenhouse Challenge Program members made after
the signing of Cooperative Agreements be publicly disclosed.
- Recommendation 89
- The Committee recommends that verification be funded by industry,
while remaining independent of industry.
- Recommendation 90
- The Committee recommends that the terms of advertising for the
Greenhouse Challenge Program be made clear in each advertisement.
- Recommendation 91
- The Committee recommends that advertising of the Greenhouse Challenge
Program featuring one or more of its members, be funded through a contribution
by all Program members to a consolidated advertising fund.
- Recommendation 92
- The Committee recommends that the Greenhouse Challenge Program
give greater attention to the development of sectoral analysis and reporting.
This should be consistent with international reporting guidelines.
- Recommendation 93
- The Committee recommends that the Greenhouse Challenge Program
be reviewed with a view to structure the Program as a transitional strategy
to build industry capacity for a future emissions trading scheme.
- Recommendation 94
- The Committee recommends that a future emissions trading system
be designed to ensure that companies are not penalised for early emissions
abatement activity.
- Australian Democrats Recommendation 11
- The Australian Democrats recommend that the Government explore
mechanisms for protecting the baseline of each Greenhouse Challenge
Program member, on the basis that such baselines record reductions that
are independently verified.
- Recommendation 95
- The Committee recommends that the Australian Greenhouse Office
assess whether proposals to extend the Greenhouse Challenge Program
would be more effectively dealt with other programs or by legislation.
Chapter 9 – Emissions Trading
Recommendation 96
The Committee recommends the early introduction of a domestic
emissions trading system, with the aim to build capacity and experience,
encourage uptake of fuel switching and energy efficiency and position
Australia to lead the international debate in the development of a
global trading scheme.
Recommendation 97
The Committee recommends a phased introduction of an emissions
trading scheme, with the possible introduction of a voluntary scheme
in advance of a mandatory scheme, designed to direct the economy on
a path to meeting Australia's Kyoto target in the first commitment
period, and to meet potentially lower targets in the subsequent and
later commitment periods.
Australian Democrats Recommendation 12
The Australian Democrats recommend that the Commonwealth Government,
in advance of a domestic emissions trading system, phase in a small
carbon levy from 2003 to provide a signal to Australian industry.
Where industry can demonstrate that this levy adversely affects its
international competitiveness some or all of those payments could
be rebated or returned as a contribution to fund investment in emissions
abatement actions within that industry.
Australian Democrats Recommendation 13
The Australian Democrats recommend that the Commonwealth Government
use the revenue from the carbon levy to fund a `Reverse Carbon Tax'
incentive program. The program should provide financial incentives
linked to the size of lifecycle emissions savings (at a rate of $x/tonne
of CO2 avoided) for the manufacturers of low greenhouse impact appliances
and equipment and builders of energy-efficient buildings and other
approved projects.
Recommendation 98
The Committee recommends that a future emissions trading scheme
be as comprehensive as administratively feasible, taking in a wide
range of sources and emitters.
The Committee acknowledges that an emissions trading scheme will
not achieve all desirable emission reductions, and recommends that
consideration be given to complementary policy measures.
Australian Democrats Recommendation 14
The Australian Democrats recommend that a future domestic emissions
trading system be designed so that the environmental costs of transport
are internalised into market decisions and consumer behaviour. The
Committee recommends that, if necessary, emissions trading be supplemented
by a range of policies which reward more responsible technologies,
investments and behaviour, and which can ensure the availability of
high quality transport alternatives that are less emissions-intensive.
Recommendation 99
While recognising that a hybrid approach to permit allocation
may be desirable in the short term, the Committee recommends that
allocation of permits by auction be considered as the basis for a
domestic emissions trading system.
Where interim concessional allocations are made, the Committee
recommends that they be made on the basis of clear and widely accepted
principles (such as life-cycle greenhouse benefits, a severe loss
of international competitiveness, or credit for early action) and
require recipients to agree to emissions reduction targets.
Recommendation 100
Where carbon leakage is likely because an activity competes with
activities in countries not bound by emissions reduction targets,
the Committee recommends that measures be implemented to minimise
the disadvantage. This may include the allocation of concessional
permits on the basis of clear and transparent criteria.
Recommendation 101
The Committee recommends that Government seek to ensure that a
future emissions trading system does not penalise early action to
reduce greenhouse emissions.
Recommendation 102
The Committee recommends that any use of permit allocation to
reward early action to reduce greenhouse emissions be treated with
caution, and ensure that reductions are verifiable and calculated
from a date following the announcement of a reward for early actions
scheme.
Recommendation 103
The Committee recommends that businesses that comply with specified
accounting practices and protocols should be guaranteed that the emissions
reduction actions will be considered in future policy development.
Recommendation 104
The Committee recommends that a national emissions trading system
be supplemented by a range of policies which will stimulate emissions
reductions in sectors for which it is difficult to provide coverage
or which do not respond to price signals.
In particular, policies to provide public transport alternatives
to the use of private motor vehicles, and to promote the development
and takeup of renewable energy, need to be a priority.
Chapter 10 - Convention on Climate Change (Implementation) Bill
1999
Recommendation 105
The Committee does not support the passage of the Convention on
Climate Change (Implementation) Bill 1999 in its current form.
The Committee recommends that comprehensive greenhouse legislation
be developed as soon as possible and when greater certainty is established
in relation to domestic and international greenhouse gas abatement
targets and measures.
Recommendation 106
The Committee supports the immediate addition of greenhouse emissions
to the Environmental Protection and Biodiversity Conservation
Act 1999 to act as a trigger for environmental impact assessment
of new projects which could cause the production of significant new
greenhouse gas emissions.
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