#ausvotes

Coalition Climate Change Policy

• Summary

  The LNP pride themselves on being a party that imposes less tax and government intervention, while allowing market forces within the economy to regulate. Their approach to climate change is no different; it offers incentives for business & consumers to make their own choices without imposing a tax regime. The emission targets are precisely the same as the ALP’s but with a cost saving of $39bn. A price on carbon is applied somewhat ad hoc by allowing business to decide the point at which it is beneficial to adopt lower emissions.

  
  

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  While the Kyoto Protocol under present terms doesn’t include soil carbons, new emission targets after 2012 are likely to do so. Any commitment the US will make will also be likely to be conditional on soil carbons being a recognised part of climate change mitigation. The Coalition supports the reduction of carbon emissions and the protection of the environment but unsurprisingly; adopt the most conservative policy toward Climate Change. Curiously however, the LNP target for emissions reduction is almost a replica of the ALP’s target; a reduction of 5% on 1990 emission levels (ie 547.7 Mt CO2) by 2020. (The ALP’s is a reduction of 5% on 2000 levels (ie552.7 Mt CO2)) As with the ALP, the LNP also commit to 20% low-emissions electricity by 2020.

  
  

  A National Climate Change Adaptation Centre will be established to inform vulnerable sectors and regions on the impacts of climate change and the implementation of practical responses to it.

  
  

  In order to meet targets, the LNP propose to create an Emissions Reduction Fund to affect direct action on soil carbon in particular, through the abatement of 140 Mt CO2 by 2020. This will be primarily with soil carbon replenishment (bio-sequestration and underground storage) of 85 Mt CO2 p.a. In particular, the government will purchase up to 10 Mt CO2 of carbon abatement from farmers with soil carbon credits in 2012-2013 .This is the cheapest from of carbon abatement and can be accomplished on a large scale. After 2020 the LNP intend that 150 Mt CO2 per year be sequestered and used in soil regeneration by payment to farmers of an estimated $10 per ton. Additionally, soil regeneration will assist soil quality, agricultural productivity and water efficiency.

  
  

  The LNP insist on incentives over penalties, and reward positive action, rather than to burden citizens and business through inflation that is precipitated by taxes. The LNP is opposed to demand management that increases the price of an inelastic good in order to change consumer habits. In their view, an Emissions Trading Scheme (ETS) will cost the economy $40.6b for the first 4 years, while delivering similar results to that of the LNP which are budgeted at $3.2bn over 4 years. Additionally, the LNP oppose an ETS as it creates inflexible property rights that may be difficult to extinguish should present research alter its course or international agreements conflict with them. Alarmingly, the LNP claim that an ETS will allow a government to maintain minimal targets regardless, by simply purchasing emissions reductions from other countries. In this event, Australians will be funding the emission reductions in other nations while not receiving any direct action on climate change domestically. Any capped emission levels under an ETS will be illusory. The LNP contend that their policy is less than 10% of the cost of an ETS over the first 4 years and will provide tangible benefits in Australia - not elsewhere.

  
  

  As an alternative to the ALP’s ETS that caps emissions at a large cost to business, which in turn is forced to trade carbon in the market place, the LNP vouch for a National and Greenhouse and Energy Reporting Scheme (NGERS). Here, business is not penalised at the outset but incentives are offered for implementing low-emission processes. Emissions above an allocated share of total emissions are offset by surrender of abatement certificates or incurring a fine. Essentially, business receives a credit for low emission implementations, which are then surrendered if levels are subsequently breached. It is only in the event of no credit that a breach of the allocated emission level is penalised. Penalties are based upon industry consultation along with the size of the business and the extent of the breach. New participants and business expansion will not fall victim to penalties. The scheme uses incentive as the first resort and penalty as the last. Business in the possession of credit can offer this carbon abatement for sale to the government. In this way an incentive is allowed to motivate the behaviour of participants who will respond more readily than to penalty. Small business and those not covered by the NGERS will be able to opt in.

  
  

  The NGERS is incentive based and so will be operational with little difficulty and as soon as July 1 2011, with a review in 2015, and continuance until 2020. Through incentives, it will allow business the flexibility to manage their own transition to a low emission economy. Liabilities on balance sheets will not be created as in the event of an ETS, and so capital is available for business to conduct their own investment in low emission implementation; the public purse will not have to compensate business. The NGERS allows participants in our economy including the government, the flexibility to adapt to developments in climate change.

  
  

  Relying upon the NGERS, approximately $1b per year will be invested in directly abating carbon emissions. Practical environmental benefits will be achieved by reducing carbon emissions, without losing Australian jobs and applying inflationary pressure on consumers. The LNP have a clear mandate to deliver environmental benefits, while sparing the economy a new tax or increased costs for the purpose of reducing carbon emissions. In pursuit of the Wilkins Report on Climate Change Programs, direct action on climate change within the economy, that achieves enduring benefits, is to be preferred over industry compensation (which may result in being politically convenient from time to time).

  
  

  While investment in new technology is imperative, it must be effective and balanced within a suite of proactive reform toward climate change mitigation.

  
  

  The reason Australia’s per capita emissions are so high internationally is our reliance on coal energy; 36% of total emissions are due to coal fired electricity. Accordingly, the LNP will offer incentives to coal fired power stations to affect and orderly shift toward lower emissions while protecting employment, electricity prices and energy security. More extensive Clean Energy Hubs that underpin the future growth of employment in clean energy will be instituted in the La Trobe, Hunter and Central Queensland regions. These Hubs will be instrumental in assisting the transition of the local workforce from coal energy skills to clean energy skills. Coal seam methane that escapes during coal mining will receive investment, and will abate 4 Mt CO2 per year by 2020. From a practical perspective 1.4 Mt CO2 will power 30 000 homes each year.

  
  

  Incentives will be provided to 1 million homeowners to adopt solar energy. To facilitate the propagation of renewable energy throughout Australia, the LNP will fund 125 mid-size school and community solar projects and 25 geothermal /tidal projects in regional Australia. Some funding will be provided for bigger projects, and research will be funded to resolve the replacement of high voltage transmission corridors with large scale renewable energy projects, and subsequent reclaiming of the land within our cities that is presently dedicated to that end. A study into replacing overhead high voltage cables with underground cables will be funded.

  
  

  20 million trees will be planted in public spaces. Further land management techniques will be propagated in a Natural Heritage Trust, a National Action Plan for Salinity and Water Quality, and a National Plan for Water Security. Investment into planting of trees will be limited due to the planting of trees to absorb carbon being suitable to achieve this end, but only with utility while new forest growth is being achieved. Once growth plateaus, the natural life cycle of vegetation will ensure that fresh carbon absorption is neutralised by fresh carbon release. Still, sustainable management of forests, carbon stored in durable wood products that are a substituted for high emission steel and concrete production, and carbon abatement through forestry wood waste as fuel rather than fossil fuels, is estimated to abate 15 Mt CO2 annually. The National Association of Forest Industries estimates this to cost $15 per tonne.

  
  

  Further funding will support research into algal synthesis (the consumption of greenhouse gas by algae to produce low cost bio-oil for electricity and animal feed) and bio-fuel research. One third of algal synthesis produces bio-oil, and two thirds results in algae meal for animal feed

  
  

  Cities accommodate 80% of our population and produce 75% of our emissions. There exists a growing housing shortage where 155 000 dwellings are required each year, with an output that is presently only 40 000. Australia’s built environment i.e. infrastructure and housing, is responsible for 23% of total emissions. The Clean Energy Council advises that green buildings will abate 2-3 Mt CO2 per year at $15 per ton.

  
  

  Landfill in Australia generates carbon and methane. By more efficient landfill administration, at a cost of $10 per ton, landfill is able to abate 4-5 Mt CO2 per year through reducing carbon emissions and using methane to generate electricity. Composting landfill by separating organics will reduce methane and nitrous oxide which are 20 times and 300 times respectively, more environmentally detrimental. Recycling also reduces emissions due to a reduction in new raw materials.