Australians know ETS action now will save money

The Prime Minister’s Emissions Trading Scheme (ETS) discussions today with Kevin Rudd will confirm that it pays to act now and end uncertainty, thanks in part to an Australian Treasury report.

The Australian Treasury’s recent modelling clearly demonstrates that early global action is less expensive than later action.

"Countries who take steps now to grow a low carbon economy will have a competitive advantage until the rest catch up and the cost of reducing emissions is low if we act now," said Jeanette Fitzsimons, Green Party Climate Change Spokesperson. "John Key should now be thoroughly briefed on the Australian Treasury’s finding after his meetings today.

"A shared approach with Australia makes sense; immediate action makes even more sense.

"If the Government wants to strengthen our economy for the future, there is nothing more important than reducing our liability for climate change emissions and our reliance on imported oil.”

The Australian report finds prosperity even with an emission reduction scenario of 25 per cent below 2000 levels by 2020 and 90 per cent below by 2050 for CO2 stabilisation at 450 parts per million. New Zealand has not even discussed such a target.

“A market-based approach allows robust economic growth into the future even as emissions fall. It is encouraging to see Australia basing climate change policy on sound economic analysis rather than the rhetoric of fear."

"New Zealand was ahead of Australia in developing its ETS but now risks being left behind as it "reviews" it. All the emphasis in the select committee brief is on costs and negatives. We are missing real opportunities, including a whole extra year that forests are not being planted.”

Instead of prompt action, the National-led Government has chosen to go over old ground, breeding uncertainty for business with a further Select Committee Review. The NZX has had to sell its emissions register because of the delays.

“The Australian Treasury has echoed what the Stern Review told us back in 2006, but still our Prime Minister remains focussed on the negatives. I hope his time with Mr Rudd has refocused his mind on the economic opportunities for both of our countries,” said Ms Fitzsimons

“Why must we continue to lower our discourse to the level of the least informed members of the debate?”