Emissions scheme 'to change behaviour' | The Australian

Article from: Australian Associated Press

THE whole objective of an emissions trading scheme (ETS) is to change people's behaviour and it should apply to as many sectors as possible, including transport and fuel, the head of the former government's emissions task group says.

But Peter Shergold, former secretary of the Department of Prime Minister and Cabinet, said even a carbon price of $20 or $30 a tonne would have a relatively modest impact on fuel prices, compared with price hikes so far this year.

Speaking ahead of the release later today of the Garnaut report on emissions trading, he said his report argued Australia needed to move forward with deliberation to set up an ETS in 2011 or 2012.

But the welfare group the Brotherhood of St Laurence warns that even a comparatively low price of $25 a tonne for carbon emissions could have a harsh impact on low income earners.

Opposition treasury spokesman Malcolm Turnbull warns the Government would be hard-pressed to get its ETS up and running by 2010 as Prime Minister Kevin Rudd has promised.

Today, climate change economist Professor Ross Garnaut, commissioned by states and territories and Labor while in opposition, releases his report.

Dr Shergold's task group, commissioned by the former government, released its report in June last year. He today said this was all about introducing a new system for the next half century.

"What the emissions task group said last year was look, this is about changing behaviour and the way you change behaviour is, obviously, making industries and households more energy conscious," Dr Shergold told ABC Radio.

He said he believed as many sectors should be included in an ETS as administratively possible, including transport.

"Having said that, even if you had a price of $20-$30 a tonne on carbon, it would have only a relatively small impact on fuel price compared with what has happened in the 14 months since I handed in that report."

Brotherhood of St Laurence climate researcher Damien Sullivan said many of the costs of a price on carbon would be passed on to ordinary people and there needed to be a scheme for compensating those on low incomes.

"When the costs are passed on, low incomes households will be disproportionately impacted by the emissions trading scheme. That is because a higher proportion of their weekly expenditure is on goods and services with a higher carbon content," he told ABC Radio.

Mr Turnbull said the Howard Government had been advised it would be difficult to get a well-designed scheme up and running by 2012.

"Kevin Rudd, in the election campaign, wanted to prove he was more green than the green, so he said, I'll start it by 2010," he said.

"He'll push ahead with this and we run the risk of having a scheme that goes off half-cocked.

"It is more important to get the emissions trading scheme right than to get it started in 2010."

University of Melbourne climate policy expert Peter Christoff said a scheme should include a firmly regulated cap.

"Secondly ... this scheme needs to cover as many sectors as possible, rather than simply just being confined, say, to electricity production."

Dr Christoff said all permits should go to a full market auction rather than be handed out at nominal price or free to various producers.