Green Paper ticks the right boxes but questions remain
Ai Group believes the Federal Government’s Green Paper on the proposed Carbon Pollution Reduction Scheme (CPRS), recently released, demonstrates the Government has heard many of the central concerns raised by business.
However, Ai Group Chief Executive Heather Ridout said a wide range of details still need further elaboration and the Government’s commitment to further close consultation with industry is welcomed as a result.
“Business will need to look closely at the proposals and we will consult with our members to test whether the Government’s approach will allay their concerns and give them sufficient investment certainty,” Ridout said.
She said many of the broader features of the proposals in the Green Paper will assist in developing a sensible approach.
“A particular area of concern revolves around the proposal to ensure that trade exposed, emissions intensive businesses do not suffer a loss of competitiveness,” Ridout said.
Ridout welcomed the emphasis on the fundamental importance of building a genuinely global response to climate change. This includes the Government’s statement that it will take account of international developments when setting the emissions targets.
“Without an effective global response, Australian efforts will be futile,” Ridout said.
The Green Paper also confirms the significance of having a scheme with broad coverage of Australian emissions. Broad coverage is a key requirement in meeting the objective of reducing greenhouse gases at the lowest possible cost.
“There is acknowledgement of the difficulties that businesses will face in preparing for a 2010 start date,” Ridout said.
“The earlier the start date the stronger is the case for a relatively gentle transition period that allows businesses breathing room in preparing for the compliance tasks, making new investments and adjusting operations. The proposal for a price cap for the first five years would assist in this regard.”
The Green Paper also recognises the opportunities there are to phase out existing regulations as the CPRS takes effect. This will reduce administration and compliance costs and will avoid imposing unnecessary regulatory imposts.
“It is vital that State and Territory Governments also commit to keeping regulation to a minimum,” Ridout said.
Ai Group’s Position on Climate Change Policy Build an effective global response Domestic measures should achieve least cost abatement Strong support for Trade Exposed Emissions Intensive businesses An initial period of gradually rising impact Remove overlapping or duplicating regulatory measures Ai Group is providing regular updates on the development of the Australian ETS and other issues related to climate change policy.
The following Ai Group Emissions Trading Fact Sheet is currently available: Emissions Trading Fact Sheet No 1. What is Happening? What is Emissions Trading? What does it Mean for Business?
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