A Cleantech.org and GHGblog.com Briefing Paper by Caroline Hoisington, Resource Economist

Introduction: the Green Paper

A number of commentators on the Green Paper for the proposed Australian Carbon Pollution Reduction Scheme that will enable Australia to meet its international obligations under the Kyoto Agreement have said that it is lacking in specifics. Actually, the Green Paper contains a great deal of information on the Government’s proposals for how the cap and trade emissions trading scheme (ETS) will work at various levels. However, it does not contain many numbers but focuses on the mechanisms. More detailed numbers - estimates of economic and financial impacts of introducing the cap and trade scheme - are to be included in the White Paper, to be released in October.

The framers of this proposed ETS have taken on a complex challenge, in an area where experience around the world is still developing. By signing the Kyoto agreement, Australia is joining the leading group of countries in this regard, and if the Australian plan is not weakened with measures that will undermine the incentives it creates, it may help Australia to earn new revenues and create new employment opportunities by becoming an innovation leader.

(more…)