Emissions Reduction Fund passed in AustraliaFriday 7 Nov 2014 With the passage of the Emissions Reduction Fund through the Senate, the federal government has taken a step towards achieving Australia’s minimum target to reduce greenhouse gas emissions to 5% below 2000 levels by 2020. The Emissions Reduction Fund is the centre-piece of the Coalition’s Direct Action plan, which will replace the Carbon Pricing Mechanism repealed in July this year.But questions remain over how Australia will achieve the post-2020 transition to a decarbonised economy by mid-century. Avoiding dangerous levels of climate change is the reason for emissions reductions policy. We now know that we have a limited “carbon budget” that means emissions must be close to zero by 2050. The carbon budget is well described by the Climate Change Authority which fortunately was retained in a deal between the coalition and the Palmer United Party to see the fund through the upper house. The deal also provides a review into emissions trading schemes (ETS) and Australia’s future target or cap. It has frustrated many to see a working emissions trading scheme abolished only to commence a new review into an ETS. Still, this shows that the ETS is a topic that won’t die. Glimpses of an ETS exist in the deal. The promise of a safeguard which acts as a cap on large emitters as part of the Emissions Reduction Fund deal could over time be strengthened to match the decarbonising trajectory needed. Shortfalls could possibly be met by buying abatement units achieved by others. More >> Source: The Conversation |
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