Chronology of climate change in Australia

The Parliamentary Library has published a timeline of climate policy in Australia. The chronology begins in the 1970s, around the time that the Australian Academy of Sciences published a report asserting that human activities are likely to contribute to warming. The document charts the journey of Australian climate policy from then until today.

Stronger targets proposed in Climate Change Authority draft report

Image source: Climate Change Authority

Today the Climate Change Authority (CCA) released a draft version of its ‘Targets and Progress Review’. The review, which according to the Clean Energy Act 2011 must be finalised by 28 February 2014, is to be used by the Minister in determining Australia’s emissions reduction goals under the carbon price mechanism. The draft report proposes two sets of caps; each set of caps defines a different emissions trajectory between now and 2020, and then to 2030. The CCA is calling for stakeholder input until 29 November 2013.

Countries trading greenhouse gas emissions

Over the last three years, the global carbon market has more than doubled in volume but almost halved in value. In that time a further eight countries, states or cities have adopted a carbon market as their primary means for reducing greenhouse gas emissions. Yet the price for one tonne of carbon dioxide equivalent has dropped by as much as 100 per cent in some markets.

A new paper from the Parliamentary Library provides a basic overview of the size and value of the global carbon market and details exactly which countries and regions are covered by a mandatory emissions trading scheme (ETS). Here is a snapshot of that paper.

Trading aviation emissions – Part 3: Australia outlines its position

Image source: Wikimedia Commons

The Government yesterday announced solidarity with a number of other countries opposing the EU’s move to include international aviation in its emission trading scheme. The motion was originally put forward by Nationals Leader Warren Truss who has been active in raising awareness on the issue. The Government supported Mr Truss’ motion. Two previous FlagPosts (this one and this one) outline why the EU's decision has been controversial and what reactions there have been. This FlagPost summarises Australia’s position and provides an update on international actions.

Korea passes ETS but details are hazy

A steel plant in South Korea
Image source: Wikimedia Commons

Legislation for a mandatory greenhouse gas emissions trading scheme (ETS) has passed South Korea's unicameral National Assembly with bipartisan support. However, many important details have still to be finalised. This FlagPost provides a summary of the Korean scheme with a little bit of background. 

Trading aviation emissions - Part 2

Image source: Department of Infrastructure and Transport

The leader of the Nationals, Warren Truss, has called the EU's inclusion of aviation in its emission trading scheme (ETS) an 'iniquitous tax', siding with a number of countries that oppose the move. In its FlagPost Trading aviation emissions from February, the Parliamentary Library outlined the main elements of the EU's decision and some of the international relations issues that have arisen. Since then, a series of new developments have taken place and the debate is far from resolved. This FlagPost is an update on the situation globally.

Trading aviation emissions

Image source: Department of Infrastructure

For the first time, Qantas and other airlines are being held accountable for greenhouse gas emissions from their international flights—at least for those flights using an airport within the European Union (EU). The move by the EU to price and restrict greenhouse gas emissions from European flights has been a contentious one. This FlagPost explains the basic mechanics of the EU’s decision and highlights some of the issues being raised.

The CFI laid bare

During the 2010 election, the Government announced that, if re-elected, it would introduce a new program, the Carbon Farming Initiative (CFI), to pay landholders for helping to reduce atmospheric greenhouse gas concentrations. On 24 March 2011, legislation for the CFI and two related bills was introduced into the House of Representatives. The debate is expected to take place this week. On the whole, the legislation has been well accepted by stakeholders, but there remain a number of contentious and complex issues with the design of the scheme. As the Parliamentary Library is in the final stages of developing a Bills Digest, this post provides a basic outline of the scheme and its main issues.

Carbon tax rate considerations

The Government’s recent proposal for tackling rising levels of Australian greenhouse gas emissions is a two-stage carbon price mechanism. The first stage of the scheme is a carbon tax. After three to five years, this will be transitioned into stage two, a cap-and-trade emissions trading scheme (ETS). The details of this architecture are unconfirmed, and there has been speculation over the level of the first-stage tax. There are also opposing views arguing that carbon pricing is not likely to be as effective in reducing emissions as, say, direct investment to accelerate the development of competitive renewable or non-carbon sources in the marketplace. So any carbon pricing mechanism implemented by the current government could be rescinded by a future government. Nevertheless, assuming a price on carbon is adopted with a view for longevity, a number of factors will be under consideration in determining this tax rate. Broadly, the tax must be high enough to reduce emissions. But it must also take into consideration the price of carbon in other countries, as explained below.

Emissions Trading – Some developments since late 2010

In November 2010 the Parliamentary Library published a Background Note outlining operating and proposed emissions trading schemes around the world. Since that publication, there have been several new developments: 

• the proposed South Korean Emissions Trading Scheme will commence operations in 2015 instead of the 2013 date that had been speculated
• the legislation implementing the proposed Japanese emissions trading scheme is currently under review. If the scheme goes ahead it most likely will commence operations in 2015 instead of 2013
• in America, the Midwestern Greenhouse Gas Reduction Accord appears to have been abandoned by the current governors of the 10 participating states. None of these governors was in office when this Accord was first signed in 2007, and
• the House of Representatives of one of the participating states in the Regional Greenhouse Gas Initiative (New Hampshire) has voted to leave this scheme on 1 January 2012. This Bill has to be approved by a Committee and that State’s Senate before it becomes law. That said, it is likely that this Bill will be passed.

But it's not all doom and gloom in respect of emissions trading. The following developments illustrate that some schemes continue to be implemented:

• the European Commission continues to prepare the implementation of the third phase of the European Union’s Emissions Trading Scheme
•  pre-market trading of allowances and offsets for use in the Californian Emissions Trading scheme has commenced, and
•  the first transaction under Taiwan’s voluntary emissions trading scheme has taken place.

 (Post authored by Leslie Nielson.)

Electric hot water systems being phased out

From this year, the Commonwealth Government has begun a two-stage phase-out of electric hot water systems. Australian Bureau of Statistics figures from March 2008 show that 'electricity was the primary source throughout Australia for household cooking and for hot water systems'. In fact, the http://www.yourhome.gov.au/ website advises that 'water heating accounts for 25 per cent of the energy used in an average home and is responsible for 23 per cent of the total greenhouse gas emissions from home energy use'.

Where is the US on climate legislation?

Climate politics is difficult in the US. There is currently a stalemate in Congress, and little prospect of moving forward. Under the Copenhagen Accord, the US has put forward a commitment…

In the range of 17%, in conformity with anticipated U.S. energy and climate legislation...The pathway set forth in pending legislation would entail a 30% reduction in 2025 and a 42% reduction in 2030, in line with the goal to reduce emissions 83% by 2050. [US submission to the United Nations Framework Convention on Climate Change, 28 January 2010]

There is currently no Federal legislation to support any such commitment.

Carbon Farming Initiative to fill a policy gap

The Government has announced that if re-elected it will introduce a new regime for landholders, the Carbon Farming Initiative. This will encourage farmers to either minimise carbon emissions or maximise carbon sequestration by altering their forestry and agricultural practices. The initiative would fill the policy gap that has existed since the termination of the Greenhouse Friendly scheme in July 2010.