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Greenhouse

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ACCI Stands For:
A Climate Change Response That
Is Global, Effective & Fair To Local Industry

And balances environmental, economic & societal priorities
to minimise the detrimental impact on jobs & community well-being

ACCI acknowledges global concern over possible changes to the earth’s climate caused by
the enhanced greenhouse effect and accepts that the weight of scientific evidence increasingly
supports the enhanced greenhouse hypothesis.

Although the economics and the science guiding policy makers on this issue is developing, and
sometimes called into question, ACCI believes there is enough evidence to suggest that industry,
governments and the community must continue to understand and systematically address this
issue.

However, any balanced assessment of the various policy options for addressing the enhanced
greenhouse effect will be impossible without further impartial and rigorous research on its
climatic, environmental, social and economic ramifications. This research is fundamental to
address uncertainty about the global effects of greenhouse gas emissions arising from human
activities and the even greater uncertainty about their regional impacts.

Policy Principles:

  • Although there are uncertainties in the science of climate change there is sufficient reason to
    be concerned that increasing levels of greenhouse gases lead to interference with the world’s
    climate system. Australia should contribute to global action by reducing its greenhouse gas
    emissions commensurate to its share of the problem
  • Active participation of developing countries in the reduction of greenhouse gas emissions,
    particularly through commitments under global agreements, is essential to effectively
    address the global climate change problem and to minimise distortions to world trade
  • A strategic, nationally uniform, “whole of government” approach to greenhouse should be
    adopted in Australia to ensure policies and measures are implemented in a way that lowers
    the costs of meeting our international obligations and distributes the cost burden equitably
    and in the national interest across the community
  • Future greenhouse policy should provide legal recognition for early action initiatives of
    corporations The strategic approach to greenhouse should facilitate adjustment within the
    economy while recognising the dynamic nature of economic change and investment
    opportunities
  • Market-based mechanisms usually provide a more efficient and least costly means of meeting
    Australia’s international commitments however due to the market failures that exist, there
    may be a need for carefully considered government intervention
  • Emission trading is a viable option for abating greenhouse gases but more work needs to be
    done to develop an appropriate and comprehensive model, taking into account the effect on
    trade impacted industries and sectors
  • In the absence of an agreed model for an emissions trading scheme the emphasis of policy
    measures should be on the provision of incentives to undertake the development of new
    technologies to reduce and abate emissions
  • Australia should oppose the introduction of a carbon tax. The setting of a ‘tax price’ that is
    equitable and efficient is extremely difficult and is likely to understate or overstate the original
    objective which is to achieve a certain pre-determined abatement target
  • Despite any uncertainty regarding the potential environmental consequences of climate
    change, greater emphasis needs to be placed on the development of adaptation strategies
  • Government and the private sector have a responsibility to ensure that the whole Australian
    community fully understands the magnitude of the task we face in reducing greenhouse gas
    emissions and all of the issues and implications of greenhouse policies

Policy Objectives:

The adoption of a principled comprehensive greenhouse policy framework must reinforce the
following national policy objectives and priorities:

  • Australian jobs are not sacrificed
  • Competitiveness of efficient Australian industries is maintained

ACCI believes that as a responsible global citizen Australia should assumes a fair share of the
burden to reduce greenhouse gas emission.

To underpin the achievement of this policy objective, ACCI believes that further rigorous and
independent research is urgently required on:

  • The global and regional climatic and environmental impacts of the enhanced greenhouse effect
  • The social and economic consequences of these impacts
  • The social and economic consequences of different policy options for addressing the enhanced
    greenhouse effect

Acheiving a comphrehensive, effective and fair climate change response also requires:

  • That it be based on the principle that the benefits accrued exceed the cost of measures
  • Measures only be implemented when there is a reasonable expectation they will achieve their
    intended outcome

To ensure that the policy outcomes are strongly focussed on efficiency, the following is also required:

  • Use of market-based mechanisms which allow the economy to adapt to emissions-reducing
    measures in the most efficient way possible. In contrast, prescriptive applied measures, if
    inappropriately applied, may result in minimal compliance, discourage innovation and
    rapidly become out of date
  • Neutrality of treatment between activities irrespective of whether they are undertaken by
    governments, businesses or consumers and regardless of sector or location
  • Symmetry of treatment between emission-producing and emission-absorbing activity, so
    that equal weight is given to activities which absorb greenhouse gases (such as the creation
    of carbon sinks) and activities which reduce the output of emissions
  • Involvement in policy making of those who will have to put greenhouse measures into effect,
    and in particular extensive consultation with industry