Chapter 1: Meet our main character the ETS – what is it?
To combat Australias shocking rate of carbon emissions—we are the highest emitters of greenhouses gases per person in the world—The Emissions Trading Scheme bill (or ETS) aims to impose a national cap on the amount of carbon Australians can emit.
Introduced by Prime Minister Kevin Rudd in 2008, the scheme (if passed) would force businesses and organisations to pay for “carbon permits” to emit carbon and greenhouse gasses. It’s similar to paying a fee to dump your rubbish at the tip but instead you pay to “dump” your carbon into the atmosphere.
As there would only be certain number of permits to limit the amount of Co2 emitted, businesses could “trade” their permits in order to produce more (or less) carbon. The price of permits would be set like other markets where supply and demand would dictate how much people were willing to pay. The Government would reduce the number of permits each year so that Australia’s carbon emissions continued to fall—which means the price of a permit would go up and hopefully make businesses look for more environmentally friendly methods instead of producing costly greenhouse gasses.
Chapter 2: Why are politicians fighting over the ETS?
Since its introduction, the ETS has become the political battleground of climate change here in Australia. While Kevin Rudd claimed it was the answer to our climate concerns, members of the Opposition could not even agree with each other. A media storm surrounding political bickering ensued, meaning many Australians were left scratching their heads, wondering what the ETS actually was and why all the fuss?
The ETS is now known for bringing down the previous Leader of the Opposition, Malcolm Turnbull, who was voted out by his own party for supporting the legislation. And it now represents the perpetual political slinging-matches between Kevin Rudd and the new leader of the Opposition Tony Abbott.
The Prime Minister is set on reintroducing the ETS bill for a third time to Parliament (it has now been voted down twice), but Abbott is adamant it’s just “one big tax” and will vote it down every time. Abbott once told the BBC that climate change is “crap”, but has since changed his tune to say he does believe humans have contributed to global warming. Some members of the Liberal Party support an ETS with amendments. But most others, like Abbott, don’t want one at all. They believe even the amended ETS bill would leave Australians taxed far more than any other country for their greenhouse gasses, which would be detrimental for small and medium businesses, and exporters.
In response to these “big tax” accusations, the PM has promised 2.9 million low-income earners an ETS $49 billion compensation package. This means they could be “$190 a year better off than they are now”.
The Daily Telegraph reported that if Rudd’s ETS bill was passed, families could be paying $300 more for electricity, $130 for gas and $520 for groceries each year. However, a report by the CSIRO found that “household wage growth will outstrip increases in energy” so we might not be too much out of pocket.
Chapter 3: Copenhagen and the future of the ETS
The ETS remains a weapon poised for battle, likely to shape Australia’s political landscape for at least the foreseeable future.
Abbott labelled Copenhagen “a comprehensive failure” as it did not produce an international legally-binding treaty to cut carbon emissions. He believes this is proof that an ETS would mean Australia would be “going-it-alone” with a carbon emissions scheme and could cost Australian jobs. However, the Prime Minister said the non-binding treaty is a pre-emptive move towards a future international treaty, and remains firm that Australia needs to take action on climate change.
Forty-six thousand registered delegates, experts, leaders and world ministers argued for 12 days at the United Nations Climate Change Conference in Copenhagen over a plan to tackle global warming, as much as our politicians quarrelled over the ETS. Developing nations staged a five-hour walkout during talks, as they felt a single treaty that applies to every country was unfair. They wanted rich countries to continue with the
Kyoto Protocol whilst working out a separate new deal for the poor.
On the final day world leaders met, and President Obama committed to a “non-binding treaty” to lead the way for about 25 other countries to limit global warming to just two degrees. As the US and China are the biggest producers of greenhouse gasses, few were willing to agree until they did.
This non-binding international agreement which Australia has agreed to is still paved in hope. The three little letters ETS are here to stay as the face of federal politics and could determine the outcome of the next election—and in turn our political and environmental future.
How do I know this?
AdelaideNow website, 2009,“ETS scheme will benefit low earners”, December 30,
http://www.news.com.au/adelaidenow/story/0,,26536744-5005962,00.html
Australian Conservation Foundation, 2006-2009, “Climate Change”
http://www.acfonline.org.au/articles/news.asp?news_id=1817
Australian Conservative website, 2009, “Abbott challenges Rudd to a public debate on the emissions trading scheme”, December 22,
http://australianconservative.com/main-site/2009/12/abbott-challenges-rudd-to-a-public-
debate-on-the-emissions-trading-scheme/
The Climate Institute, 2008, “Smart policy can improve families’ energy affordability”, June 22
http://www.climateinstitute.org.au/index.php?option=com_content&task=view&id=189&Itemid=1
Garnaut Climate Change Review, 2008, “Emissions Trading Scheme Discussion Paper”,
http://www.garnautreview.org.au/CA25734E0016A131/
WebObj/D0836448ETSpaper-FINAL-fullcolour/$File/D08%2036448%20%20ETS%20paper%20-%20FINAL%20-%20full%20colour.pdf
Grattan, M. & Schubert, M, 2009, The Age website, “Government to make third ETS attempt”, December 2,
http://www.theage.com.au/environment/government-to-make-third-ets-attempt-20091201-k3uw.html
Malcolm Turnbull, Member for Wentworth website, 2009, “ETS – striking the right balance”, Blog, January 26
http://www.malcolmturnbull.com.au/tabid/124/Default.aspx
Malcolm Turnbull, Member for Wentworth website, 2009, “Senate rejects ETS”, Blog, December 2,
http://www.malcolmturnbull.com.au/MalcolmsBlogs/tabid/
105/articleType/ArticleView/articleId/697/Senate-Rejects-ETS.aspx
Reuters website, “African protest hits U.N. climate talks in final week”, December 14.
http://www.reuters.com/article/idUSGEE5BB07F20091214
Rolfe, J. & Farr, M. 2009, The Daily Telegraph, “The real cost of going green”, November 25, p.1
Samuelsohn, D. 2009, The New York Times website, “Obama negotiates ‘Copenhagen Accord’ with Senate Climate Fight in Mind”, December 21,
http://www.nytimes.com/cwire/2009/12/21/21climatewire-obama-negotiates-copenhagen-accord-with-senat-6121.html
Tasker, S. & Taylor, L. 2009, The Australian website, “Malcolm Turnbull turns up the heat on carbon trading”, March 18,
http://www.theaustralian.com.au/news/turnbull-turns-up-heat-on-ets/story-e6frg6no-1111119165431
3AW 693 News Talk website, 2009, “Abbott the new leader of the Liberal Party”, December 1,
http://www.3aw.com.au/blogs/3aw-generic-blog/abbott-the-new-leader-of-liberal-party/20091201-k1um.html
