Vandalised Carbon Pollution Reduction Scheme not worthy of support

Media release from the Conservation Council - 24 November 2009

The ‘deal’ offered to the Federal Opposition by the Rudd Government on its Carbon Pollution Reduction Scheme will render the scheme totally ineffective in delivering the necessary transition to a clean energy economy according to the Conservation Council of WA.

Key elements of the proposed package are outlined below (provided by Carbon and Environment Daily)

Conservation Council Director, Piers Verstegen said “The Rudd Government should hold off on any further negotiations with an opposition that is made up of prehistoric climate sceptics until after the UN Climate Change negotiations in Copenhagen next month.

“Any deal that can be struck now with our dinosaur opposition will result in such an appalling scheme that it can only reduce the chances of achieving an effective international climate change agreement.

“As part of the proposed deal offered to the Opposition, polluting industries will get an extra six billion dollars in handouts, taking the total ‘compensation’ package for polluting industries to over $10 billion.

“If this scheme is passed, it will mean that the lobbying and scaremongering of the coal and pollution lobby, together with the climate sceptics in Parliament will have cost Australian households and small businesses over $10 billion dollars to keep our worst polluting industries afloat.

“Under the proposed scheme, the very industries that need to be phased out of the Australian economy will be subsidised by everyone else to keep polluting.

“The saddest thing about this vandalised emissions trading scheme is it will entrench the worst polluting industries into our economy while everyone else is forced to pay for their pollution.

“Australia needs a renewable energy revolution, not an emissions trading scheme that hands over billions of dollars worth of free property rights to our worst polluting industries,” said Mr Verstegen.

MEDIA CONTACT: Piers Verstegen 0411 557 892

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Key elements of the ‘Deal’ offered today by the Rudd Government to the Federal Opposition on the Carbon Pollution Reduction Scheme.

[Provided by Carbon and Environment Daily - http://www.cedaily.com.au]

Emissions-Intensive Trade-Exposed Industries: Permanently incorporating into assistance rates the Global Recession Buffer – which was originally intended to provide a temporary boost to help large emitters cope with the global economic downturn.

However, the 1.3% decay factor in permit allocations will remain.

That means assistance for the very largest emitters will start at 94.5% and assistance for large emitters will start at 66% and decline gradually, without any sharp reduction due to removal of the buffer.

Coal-fired generators: An increase of $4 billion in assistance, boosting the total value of permits given to them from $3.3 billion to $7.3 billion.

A further three new measures – a Low Emissions Transition Incentive, an Energy Security Assurance Mechanism and deferred payment arrangements – will be introduced "to maintain energy security and drive the transition to a low pollution future".

Coal mining companies: Providing $1.5 billion in transitional assistance, up from $750 million previously. The Government will commit $270 million to the Coal Mine Abatement Fund through the Climate Change Action Fund to assist gassy coal mines to reduce emissions.

As well, the current COAG RET review process will consider whether new waste coal mine gas projects should be eligible.

Voluntary action: The Government will ensure the CPRS takes into account voluntary action by households, so that voluntary action by households will allow Australia to go beyond its 2020 emissions reduction target.

Electricity Prices: A new Transitional Electricity Cost Assistance Program of $1.1 billion to assist medium and large manufacturing and mining businesses with CPRS-related increases in electricity prices during the early years of the CPRS.