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National reviews

There have been three recent government sponsored reports or reviews in response to climate change:

  • The National Emissions Trading Taskforce
  • The Prime Ministerial Task Group on Emissions Trading and
  • The Garnaut Climate Change Review.

The National Emissions Trading Taskforce

In 2004, the leaders of the state and territory governments established the Inter-Jurisdictional Working Group on Emissions Trading to design an Australian emissions trading scheme. This work was undertaken by a group drawn from the various state and territory public services and made use of specialist consultants when required. This group was later renamed the National Emissions Trading Taskforce (NETT).

The work was based on the assumption that a cap and trade approach would be the basis for any Australian emissions trading scheme, which would cover most economic sectors and the six major greenhouse gases mentioned in Annex A of the Kyoto Protocol to the United Nations Framework Convention on Climate Change.

The final report of this taskforce entitled Possible design of a national greenhouse gas emissions trading scheme—Final framework report on scheme design was released in December 2007.

Prime Ministerial Task Group on Emissions Trading

On 10 December 2006 the then Prime Minister, John Howard, announced the establishment of a joint government-business Task Group on Emissions Trading. The task group released an Issues Paper on 7 February 2007 providing the context for the work to be undertaken and setting out some of the relevant issues and questions for public comment. In response, 216 submissions were received from interested parties. Discussions were also held with 180 representative groups and individuals in Australia and overseas.

The Report of the Task Group on Emissions Trading was intended to contribute to public discussion and the development of policy on the role of emissions trading in delivering least-cost reductions in greenhouse gas emissions. The report outlines the state of play in international cooperation on climate change and the possible development of emissions trading at the global level. Against this background, the report outlines a proposed Australian domestic emissions trading scheme, together with a set of complementary policies and measures, that would enable Australia to position itself for international developments while maintaining economic growth and safeguarding our competitive advantage.

Garnaut Climate Change Review

The Garnaut Climate Change Review is an independent study by Professor Ross Garnaut, which was commissioned by the then Federal Opposition and state and territory governments. The review was established on 30 April 2007.

The review examined the impacts of climate change on the Australian economy, and recommended medium to long-term policies and policy frameworks to improve the prospects for sustainable prosperity.

The review's final report was released on 30 September 2008. A number of other discussion papers and reports have been released as part of the review's work. A number of forums have also been held around Australia to engage the public on various issues relating to the review. Additional work has been commissioned by the review from academics and from the Productivity Commission.

The government has undertaken to release the economic modelling that formed one of the major inputs to the Garnaut Climate Change Review's work by the end of October 2008.

Results

Each of the above reviews have rejected a carbon tax approach to emissions control. Instead they have supported the adoption of an emissions trading approach, specifically in the form of a cap and trade emissions trading scheme. the government has put forward a proposed Carbon Pollution Reduction Scheme, which is based on a cap and trade approach.

However, each of the reviews adopted different positions on compensation for affected industries and on sector coverage. A guide to the differences in the position of the above reviews/reports can be found in Appendix 4 of the Garnaut Climate Change Review’s Emissions Trading Scheme Discussion Paper.



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