Chapter 1
Introduction
Terms of reference
1.1
This report sets out the findings of the inquiry by the Select Committee
on Climate Policy into:
-
the choice of emissions trading as the central policy to reduce
Australia’s carbon pollution, taking into account the need to:
-
reduce carbon pollution at the lowest economic cost,
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put in place long-term
incentives for investment in clean energy and low-emission technology, and
-
contribute to a global solution
to climate change;
-
the relative contributions to overall emission reduction targets from
complementary measures such as renewable energy feed-in laws, energy efficiency
and the protection or development of terrestrial carbon stores such as native
forests and soils;
-
whether the Government’s Carbon Pollution Reduction Scheme is
environmentally effective, in particular with regard to the adequacy or
otherwise of the Government’s 2020 and 2050 greenhouse gas emission reduction
targets in avoiding dangerous climate change;
-
an appropriate mechanism for determining what a fair and equitable
contribution to the global emission reduction effort would be;
-
whether the design of the proposed scheme will send appropriate
investment signals for green collar jobs, research and development, and the
manufacturing and service industries, taking into account permit allocation,
leakage, compensation mechanisms and additionality issues; and
-
any related matter.
The conduct of the inquiry
1.2
The Senate created the Committee on 11 March 2009 to report by 14 May
2009.
1.3
The inquiry was advertised in the national press and details of the
inquiry were placed on the Committee's website. The Committee invited
submissions from a wide range of interested organisations, government
departments and individuals and continued to accept submissions throughout the
inquiry. The submissions are listed in Appendix 1, and are available on
the committee's website. The Committee expresses its gratitude to all those who
made submissions.
1.4
Public hearings were held in Canberra (15, 16 and 30 April and 1 May),
Perth (20 April), Sydney (21 April), Melbourne (22 April), Hobart (23 April)
and Brisbane (28 April). Some witnesses from other locations, such as Mount
Isa, Gladstone and Newcastle, were heard via teleconference. In total over 200
witnesses appeared before the Committee. A list of witnesses is found at
Appendix 2. The Committee thanks these witnesses and apologises to the many
aspiring witnesses that could not be fitted into the programme.
1.5
The Committee believes that the conduct of this inquiry has had an
influence on, and makes a contribution to, the debate on this important issue.
1.6
In the week before the Committee's report was due to be tabled, and
after the scheduled public hearings had been completed, the Government
announced modifications to its Carbon Pollution Reduction Scheme. These
including delaying the start date, increasing the conditional target for
emissions reductions, increasing assistance to some companies and recognising
some household contributions to reducing emissions.
1.7
So that consideration of these changes could be reflected in the
Committee's report, the Committee requested an extension of its reporting date.
The Senate agreed to extend the reporting date to 15 June 2009. The Committee
then held an additional public hearing, in Canberra, on 20 May, to discuss the
impact of the proposed changes to the CPRS.
Structure of the report
1.8
The Report is structured as follows:
-
Chapter 2 sets out the evidence given to the Committee concerning the
cause and extent of climate change and the extent to which climate change is a
consequence of anthropogenic behaviour. It includes evidence from witnesses
about:
-
potential ethical and moral dimensions;
-
global response to climate change; and
-
economic modelling.
-
Chapter 3 considers the various policy options to reduce greenhouse gas emissions.
-
Chapter 4 considers
the effectiveness of the proposed CPRS as an emissions trading scheme. It
notes that the model adopted by the Government is a cap and trade
production-based emissions trading scheme.
-
Chapter 5 considers complementary measures to address mitigating climate
change.
-
Chapter 6 considers agriculture and land use issues including the
treatment of agriculture, the role of both native and planted forests, and
biosequestration. There was broad agreement within the Committee that more
work needed to be done on these issues, and that in particular there may need
to be improvements to the current 'carbon accounting' treatment.
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