The Business Council of Australia‘s Climate Policy supports a ‘cap and trade’ emission system for Carbon in Australia. In January, we discussed a PWC report called “Carbon Conscious” where the survey suggested that 78% of the respondents wanted a regulated rather than voluntary carbon traded system. The support is seen in the climate policy of BCA now.
The BCA’s Strategic Framework for Emissions Reduction (Download: PDF) acknowledges the need for a long term policy to combat the problem. In fact, they are very realistic in their assessment that to transition from the current high-carbon economy to a low-carbon one will not be easy and will carry a economic cost. However, not doing so has it own associated costs.
Even though a global trading system for Carbon is the ideal situation; Australia should develop its own cap-trade system which will initially run for at least 30 years to remove uncertainty for investors and create a market where the cheapest abatement technology will win.
The introduction provides a clear sense of what the business world in Australia understands and the need for the government to move in. This document will be a great step forward for Australia’s Low-Carbon future.