Australia is starting well behind.
The European Union has had an emissions trading scheme since 2003, has set targets for 2020 and has taken other steps to significantly reduce emissions.
Action by developed countries is a necessary first step if there is to be any hope of getting binding commitments from developing countries, which argue that, since it was the industrialised nations that created the problem, they should take the lead in resolving it.
Reducing emissions need not mean lowering economic growth. The challenge is to break the link between emissions and economic growth. Schwarzenegger has pointed to one way of doing so.
Garnaut suggests that all the money raised from selling permits for an emissions trading scheme be returned to the community. But the compensation has to be indirect if it is not to be self-defeating. Putting a carbon price on petrol, then cutting the excise by an equivalent amount, may be politically appealing. But it reverses the price signal designed to encourage reduced consumption and a shift to other forms of energy. Petrol prices are high enough now to encourage changed behaviour but they may not be in a few years, particularly if the world economy tanks.
That does not mean households, particularly those on lower incomes, should not receive compensation for higher petrol prices but that it should be given in other forms, such as through the social security and tax systems. As much as possible should be channeled into incentives for greater energy efficiency, measures that people on low incomes would not otherwise take.
Technorati Tags: European Union, Australia, Australia is starting well behind, climate change, climate, reduce energy, educed energy, energy, global warming, climate change, ISO 9001
Jean is an award winning consultant and trainer helping people and businesses around the world who want greater efficiency and reduced stress! If you sometimes need to deal with staff errors and what is even worse, covered up errors that come back to bite, you are riding a time bomb and Jean will help you defuse it. Plus get you real recognition from markets and regulators.
The good news is that this is now available as online training so you only need to commit to one hour per week and no travel. You can even Do-It-Yourself! .
