Brotherhood of St Laurence, Melbourne Australia media release 14/11/08
Carbon emissions trading scheme must be fair to work, says Garnaut
Measures to counter global warming must be fair across society, including for the most vulnerable, to work properly, according to Professor Ross Garnaut as he delivered a lecture in Melbourne last night hosted by national welfare agency the Brotherhood of St Laurence.
Professor Garnaut, who headed the recently completed Garnaut Climate Change Review, said: “We are not going to be able to maintain the steady mitigation policies over long periods of time that are necessary to get our emissions down, unless our community thinks that the policies are fair.
“For that reason, getting the income distribution effects of the emissions trading scheme right is an essential part of getting the scheme itself right,” said Professor Garnaut, speaking at the Brotherhood’s annual Sambell Oration.
“Looking after low-income Australians is not part of the design of the scheme itself, but the success of income distribution policies will determine whether the intrinsic operations of the emissions trading scheme will work.”
He said that the most vulnerable would be the most affected by climate change itself. However, putting a price on carbon also risked damaging the welfare of low-income Australians, immediately and through the structural pressures that it put on the economy.
“An effective emissions trading scheme will affect differentially various sectors of the economy and various geographic regions. It is possible that it could hurt some industries in ways that did substantial damage to some communities. We need to recognise these possibilities, and have policies to manage their consequences,” he said.
Professor Garnaut also raised the issue of the world financial crisis. He said this did not make the problem of global warming less important or less urgent, and that government measures to boost the economy should include investment in low-emissions technologies.
“Most Governments are shifting to expansive fiscal policies. Focusing part of the expansion out of recessionary conditions on investment in research, development and commercialisation of low-emissions technologies makes good economic sense, and is likely to be politically attractive.
“Nevertheless, the preoccupation with the financial crisis and its aftermath may distract the Australian and international polities from the urgent task of mitigation. That would be a costly mistake. The consequences of unmitigated climate change would still be here tomorrow. The chances of avoiding high risks of dangerous climate change may not,” he said.
The Sambell Oration is named after a former director, Archbishop Geoffrey Sambell (1914-1980), and reflects his vision for social justice. Sustainability Victoria was the sponsor of this year’s Sambell Oration. Download the speech from:
http://www.bsl.org.au/pdfs/Sambell_O...08_Garnaut.pdf
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