Tuesday, March 26, 2013

Carbon tax 'crucial' to Australia's global standing: Combet - Sydney Morning Herald


An Abbott government would risk Australia's international reputation and undermine its economic interests if it scrapped the carbon tax, Climate Change Minister Greg Combet has told a joint climate change forum with China.


Mr Combet told the forum in Sydney, which included Xie Zhenhua, vice chairman of China's powerful National Development and Reform Commission, that by scrapping the tax it would sever Australia's growing links with global moves to put a price on emissions.


Having a carbon price and policies to support it will enable Australia to fully participate in climate change negotiations set for 2015, Mr Combet said.


"For our international reputation that is crucial," he said. "This is a country that does what it says it will do."


Opposition Leader Tony Abbott has pledged scrap the carbon price if the Coalition wins office, replacing the policy with a "direct action" plan to pay polluters for reducing their emissions.


Australia's carbon tax of $23 a tonne is scheduled to convert to a floating price linked to Europe's emissions trading scheme in 2015.


Canberra has held talks with California in the US, South Korea and now China to "ultimately try to link these schemes together" once verification and other regulatory standards can be agreed, Mr Combet said.


"There is a very strong economic interest in us linking our emissions trading efforts in establishing a large carbon market in the Asia Pacific region," he said.


Mr Combet said that the government would not reverse its support for a carbon price even if it lost office at elections set for September 14.


"In the event that the opposition does win the election but does not have control of the Senate, we will block legislation by the new government to repeal the emissions trading scheme," he said.


China is already the world's largest emitter of carbon dioxide and other greenhouse gases blamed for warming the globe. Extension pollution, particularly in Beijing in recent months, has added to the urgency to switch away from fossil fuels, particularly coal.


The country now sources about 10 per cent of its energy from renewable sources, and intends to lift that ratio to 15 per cent by 2020. Rather than cap total emissions, though, Beijing's goal is to cut the energy-intensity of its economic output by between 40-45 per cent by 2020.


China plans to launch pilot carbon markets in five cities and two major provinces, with the first of those to start in Beijing next month. The pilot scheme will apply to companies emitting at least 10,000 tonnes of carbon annually, less than Australia's threshold of 25,000 tonnes.


The seven markets will cover ten times Australia's population and about twice Australia's emissions, Mr Combet said.


"People like the Leader of the Opposition say China will never have a price on carbon," Mr Combet said. "This is just another case of deceit."



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