Australia’s CO2 Tax Architect Garnaut Admits Carbon Trading Prices Too Low To Work

Posted on Mon 02/04/2013 by

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Bolt New 01By Andrew Bolt ~CO2 Capture

Australia’s Labor Government hired Professor Ross Garnaut to help draw up its carbon dioxide trading system.

Now even Garnaut admits carbon trading systems overseas – to which the Gillard Government has linked us – have crashed so badly that they are next to useless:

We should acknowledge that trade in emissions entitlements has struck some large practical problems. Within the European emissions trading system, the many regulatory and fiscal interventions are forcing much larger reductions in emissions than carbon pricing. These together with slow growth in economic activity and the realisation of unexpected opportunities for low-cost abatement have caused permit prices to fall to levels that are well below the economic cost of emissions and the value of abatement.

The low prices raise questions about the effectiveness of the emissions trading system… Low European and CDM [Clean Development Mechanism] prices would, if uncorrected, introduce low prices into other emissions trading systems with which Europe is linked, notably Australia from 2015. Already New Zealand’s emissions trading scheme has prices close to zero…

The contemporary problems of uneconomically low prices in domestic and international trading schemes can therefore be seen as a threat to achievement of long term global mitigation goals.

And how will the Government be able to pay for compensation pegged at $23 a tonne when the tax to raise that cash actually falls to, say, $10?

UPDATE

Weather is not climate – something many alarmists forgot when reporting a heat wave and fires last month.

For those people, this news from Britain:

Travellers are being warned to brace themselves for snowy weather across much of the country with 15 metre waves off the north coast as forecasters predicted this could be the coldest February in almost 30 years.

In the US:

WGN-TV Chief Meteorologist Tom Skilling says today marks the coldest February open in Chicago in 17 years.

In India last month:

Delhiites on Wednesday shivered under intense cold as the national capital recorded its coldest day in 44 years.

In Australia, the Sydney Morning Herald this morning urges sceptics not to gloat:

SYDNEY may have shivered through its coolest February weekend in 19 years but it won’t be long before the mercury jumps back above normal.

That last was from the paper’s “carbon economy editor”, who last week pounced on a spell of hot weather to talk climate change:

Nationwide, the January average maximum temperature anomaly was 2.28 degrees, “a substantial increase” on the previous record of 2.17 degrees set in 1932…

Some climate change signals are clearer than others, and there is no reason to ignore the direction most indicators are clearly pointed, said Andrew Ash, director of the climate adaptation flagship at the CSIRO.

Andrew Bolt is a journalist and columnist writing for The Herald Sun in Melbourne Victoria Australia.

Andrew Bolt’s columns appear in Melbourne’s Herald Sun, Sydney’s Daily Telegraph and Adelaide’s Advertiser. He runs the most-read political blog in Australia and hosts Channel 10’s The Bolt Report each Sunday at 10am. He is also heard from Monday to Friday at 8am on the breakfast show of radio station MTR 1377, and his book  Still Not Sorry remains very widely read.

Read more excellent articles from Andrew Bolt’s Blog . http://blogs.news.com.au/heraldsun/andrewbolt/