After the Garnaut Report and the Green Paper, it appears that Federal Labor may not make the Australian emissions trading scheme as robust as it needs to be to ensure that damaging climate change is mitigated.
An emissions trading scheme (ETS) is essential for Australia’s long term environmental and economic future.
A strong ETS with a high price on carbon is crucial. Introducing a cap in emissions creates scarcity; market forces then forces the price up. We need a cap that strongly restricts carbon pollution.
Victoria is well placed to take advantage of a strong ETS. Although we have enormous infrastructure that pollutes heavily, Victoria also has abundant natural resources. And we already have a number of emerging players in renewable technologies.
By setting a high cap, the Federal Government can ensure that market forces ensure that new technologies, particularly renewable energy and carbon capture and sequestration, have an opportunity to compete against lower-cost polluting energy and industries.