Abbott unveils new climate policy

2 Feb 2010, 12:52 pm   -   Source: AAP
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Mr Abbott unveiled the coalition's new climate change policy ahead of the government's third attempt to have parliament approve its planned ETS. (AAP)

Mr Abbott unveiled the coalition's new climate change policy ahead of the government's third attempt to have parliament approve its planned ETS. (AAP)

A coalition government would create a $1 billion fund that would be used to purchase initiatives aimed at reducing Australia's greenhouse gas emissions, Opposition Leader Tony Abbott has announced.

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A coalition government would create a $1 billion fund that would be used to purchase initiatives aimed at reducing Australia's greenhouse gas emissions, Opposition Leader Tony Abbott has announced.

Mr Abbott says under the scheme the government would:

* Cut emissions by 5 per cent by 2020

* Plant 20 million trees by 2020

* Invest in solar energy, biosequestration

* The scheme would cost $3.2 billion over five years

Mr Abbott unveiled the coalition's new climate change policy ahead of the government's third attempt to have parliament approve its planned emissions trading scheme, already twice rejected by the Senate.

"Our policy will be simpler, cheaper and more effective than the government's," he told reporters in Canberra on Tuesday, adding it would rely on incentives, not penalties.

He committed the coalition to the same carbon reduction targets as the government, but at a much lower cost.

Mr Abbott said the criteria by which the coalition would judge the bids for spending would fall into four categories. It must involve a reduction in emissions and it must improve the environment.

"Third, there must be no increase in cost to consumers," he said.

"(Prime Minister Kevin) Rudd has been out there this morning saying our policy is no good because it doesn't involve compensation.

"Well you don't need compensation if you aren't slugging consumers with high prices."

Finally, there must be no cost to jobs.

Under the $3.2 billion plan, an emissions reductions fund would be established to provide direct incentives to business and the agricultural sector to cut emissions.

Mr Abbott took the policy to the coalition joint partyroom this morning where it was broadly supported by MPs and senators.

Mr Abbott told reporters the scheme was designed to reduce greenhouse gas emissions by five per cent by 2020.

"Incentive-based approach provides practical and affordable environmental benefits as well as reducing carbon emissions," he said.

Mr Abbott said the policy would protect Australian jobs and was carefully costed and capped. Under the plan, businesses that cut emissions below a baseline level will be able to sell their carbon abatement to the government.

"Businesses that emit above their business-as-usual levels will incur a financial penalty," he said.

The scheme will begin in 2011-12 with an initial allocation of $300 million.

The size of the scheme will grow to $1 billion in 2014-15.

Among the initiatives to promote abatement, will be biosequestration, solar energy and additional tree planting.

Mr Abbott stressed his proposal was a market-based system based on rewards, not penalties. "We will go to the market and say give us your lowest cost environmental improvements and reductions in emissions," he said.

"This is a market-based system alright, it's just not the giant money-go-round market-based system that the government wants to put in place." Mr Abbott said the coalition's climate scheme was "quintessentially Australian.

"It's about solar and it's about soil," he said, adding it would be "careful, costed and capped."

"There can be no cost blow-out in this policy."

The coalition's climate action spokesman Greg Hunt said the opposition had the same target as the government, to reduce carbon emissions by 140 million tonnes by 2020.

The coalition scheme would start their scheme on July 1, 2011 - the same date as Labor's proposed emissions trading scheme. "We can do it because our system is simple," Mr Hunt said.

Mr Abbott was unable to say from where the funding would come for the plan.

However, the $3.2 billion cost over the forward estimates compared with Labor's $40 billion "money-go-round".

Over 10 years, the coalition's plan would cost $10 billion as opposed to Labor's $114 billion carbon pollution reduction scheme.

"We have to find $3.2 billion over four years," Mr Abbott said.

"We will be upfront with you about where the money is coming from in good time before the next election. "We think we can find it from the budget."

The cost of the coalition's policy is based on a carbon price of $15 a tonne.

But Mr Abbott said he had advice that "very large quantities" of emissions reduction could be achieved at prices in some cases of below $10 a tonne.

"We think that based on those levels ... that's very conservative."

A system of penalties would be introduced to ensure there was not a blowout in emissions but companies that stayed within "business as usual" pollution levels would not be affected.

"They have to stay within the baseline that has been established through the government's existing greenhouse reporting system," Mr Abbott said.

"If they go over that baseline, in consultation with industry, there will be a system of penalties."

"So, we can stop them emitting more but business as usual is not going to penalise Australian business."

Mr Abbott was not able to reveal any details about the penalty system.

Asked about the coalition's commitment to plant 20 million trees by 2020, Nationals leader Warren Truss said the opposition was committed to preserving Australia's productive farmland.

This could be done through burying powerlines and using the space to plant urban tree corridors.

"You can continue to do that without encroaching on the land that's so vital to ensuring our nation's food security," Mr Truss said.

Mr Hunt said the oldest and least efficient of the power providers found Labor's emissions trading scheme too expensive.

They were far more likely to switch from coal to gas under the coalition's proposal,which he said offered them incentives to make the switch.

The coalition had no plans of changing its nuclear power or land clearing policies, Mr Abbott said.

"It is not our policy to build nuclear power stations.

"We would prefer to see high-environmental value timber preserved, but we are not proposing any additional policies directly on the subject of land clearing."ich he said offered them incentives to make the switch.

Mr Abbott said electricity prices would not increase as a result of the coalition's policy, rejecting suggestions power generators that exceeded emissions limits would pass the cost of any penalty on to consumers.

"There's no reason why they should go above that (emissions level)."

Industry groups such as the Business Council of Australia and Australian Chamber of Commerce and Industry had endorsed the modelling on the impact of the policy on electricity prices, Mr Abbott said.

"They don't believe that they are going to go above that baseline.

"They think that over time they are going to improve their emissions intensity not increase their emissions intensity."

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Your Comments

So...

Terry - from Canberra, 2 years ago

So, he's created a policy to put aside some money to be spent on policy initiatives that others are supposed to come up with. These policies are to adhere to a set of totally unrealistic standards that no one will be able to meet. Yeah, it'll be cheap and simple. It will be cheaper because he'll never spend the money. It'll be simple and efficient because nobody will ever have to do anything. Nice job, Tony. *slow clap* Now lets watch Liberal voters salivate over this idiotic non-policy.

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