Way forward needed on climate change policy

In a statement yesterday, Heather Ridout, Chief Executive Australian Industry (Ai) Group, said:

“The Australian Industry Group’s National Executive, the organisation’s principal policy-making body, resolved today that, given the fracturing of the domestic consensus on climate change policy and the failure of international negotiations, there is great uncertainty around how to progress this issue and no clear way forward.

“While the chance of adopting an emissions trading scheme is remote in the near term, both major parties have agreed on emissions reduction targets of at least 5% of 2000 levels by 2020 and, therefore, how this will be achieved will remain on the national agenda. In the longer term, we continue to see a market-based approach as having the most potential to deliver least cost abatement.

“The meeting decided that Ai Group will convene an industry leaders’ group to identify the best way forward which should be consistent with the following five key principles:

• The competitiveness of Australia’s trade-exposed industries cannot be eroded;
• Australia should be able to meet its international emissions reduction commitments at least cost;
• The continuity of energy supply should be assured as we transition to lower-emission energy sources;
• A central feature of policy should be on supporting research and development of new and refinement of existing approaches to emissions reduction; and
• Compliance costs and regulatory burdens should be kept to a minimum.

“The industry leaders’ group will consider current and alternative proposals in light of the above principles. It will include representatives from across the country and the economy,” Ridout said.