Neighbouring emissions scheme sounds climate concern

TUESDAY 3 JUNE 2008

The difficulties faced by the New Zealand Government with introducing an Emissions Trading Scheme and the Australian discussions about how to discount petrol do not bode well for the country’s ability to reduce greenhouse gas emissions, an academic from The Australian National University is warning.

Associate Professor Richard Denniss of the Crawford School has been studying the likely effectiveness of the New Zealand Government’s Emissions Trading Scheme for his paper The NZ Emissions Trading Scheme – why is it so bad and can Australia’s be any better?

Professor Denniss said that politicians arguing about how to discount petrol should ring alarm bells for anyone keen to see effective action taken against rising greenhouse gas emissions.

“Given the recent consternation in Australia over very small reductions in the price of petrol, it is difficult to see how we are going to have a sensible debate about an effective Emissions Trading Scheme (ETS) in Australia,” he said.

“The worst thing Australia could do would be to follow New Zealand down the path of incurring all the costs of an ETS, while missing out on all the economic and environmental benefits. They have gone for the worst of both worlds, but hopefully Australia can do better.”

He says that Australian policy makers need to look across the Tasman to learn a number of valuable lessons before the introduction of any national Emissions Trading Scheme, to ensure the New Zealand experience is not repeated here.

“The most significant lesson is that the introduction of a new policy should not be confused with the introduction of an actual solution,” he said. “New Zealand may soon have an ETS, but there is little chance that the rate of greenhouse gas emissions will even slow, let alone decline. The underlying cause of this problem is the failure to set a domestic target and the decision to give away so many of the permits to polluters.

“Another lesson is that powerful industry groups have the capacity to insulate themselves from the impact of an ETS. The agriculture sector, for example, which accounts for nearly 50 per cent of New Zealand’s emissions, has been excluded from the scheme until at least 2013.”

He also highlighted lack of bipartisan support across the New Zealand political spectrum and a growing list of industry exemptions and entry delays as concerns.

For more information or to arrange interviews:
Associate Professor Richard Denniss – (02) 6125 0127
Martyn Pearce, ANU Media Office – (02) 6125 5575 / 0416 249 245