WWF-Australia backgrounder: Emission Trading Scheme Green Paper

16 Jul 2008

Key elements of an effective emissions trading scheme

Key elements	Reasons	Look out for...
1. Auction all permits	Auctioning is the most efficient way to reduce emissions Auctioning provides the Government with revenue that can be used to reduce the financial impact of the ETS on households and trade-exposed business Auctioning provides the Government with revenue that can be used to fund R & D of wind, solar and other low-pollution sources of energy	Compensation or free permits for State-owned or private electricity generators
2. Include transport/petrol (and as many other economic sectors as possible)	Petrol/transport is a large and growing source of Australian emissions (14%) The ETS will be lower-cost if all major sources of emissions (that can be accurately measured) are included on its commencement All sources of Australian emissions other than agriculture and waste can be accurately measured now - and therefore should be included in the ETS	Exclusion of petrol
3. Start in 2010; which requires the legislation to be in place by early-2009	Starting soon will mean that it will cost less to reduce Australia’s emissions overall (as Garnaut has pointed out) Australia needs to foster an international agreement to deal with climate change – to do so we need to show we have taken significant action to reduce emissions before the next important international meeting (in Copenhagen in December 2009)	Arguments from vested interests that Australia should do nothing until after China or India have acted – poor countries (like China and India) will never be able to cut emissions unless rich countries (like Australia) do so first
4. Independent body to administer the scheme	An independent body (like the “Reserve Bank of Carbon”) will be less vulnerable to pressure by big polluters and other vested interests than a Government Minister or department	Minister able to give directions to the independent body
5. Would support a medium-term 2020 Australian emissions reduction target of 25-40% below 1990 levels	Australia needs to foster an international agreement to deal with climate change – to do so we need to show we have taken (or decided to take) significant action to reduce emissions by 2020 Significant emission reduction target is necessary to roll-out large-scale wind, solar and other sources of clean energy

For more information

Charlie Stevens, WWF-Australia Press Office,
02 8202 1274, 0424 649 689

Paul Toni, Program Leader – Development and Sustainability,
0410 086 986 or

Nicole Ikenberg, Policy Manager – Climate Change,
0400 324 107