Garnaut Climate Change Review - Draft Report - 4 July 2008

4 July 2008

The draft report of the Garnaut Review was released on 4 July 2008.

The main conclusions of the report are

1. An ETS is preferred to a tax or hybrid scheme.
2. The ETS could have a transitional phase from 2010–2012
3. Permits could be sold at a "low, fixed" price during the transitional phase.
4. Spreading the costs across the economy will be achieved by including as many sectors as possible
5. Transport should be included in the emissions trading scheme ("ETS").
6. Emissions permits should be sold by competitive auction, and not given away or "grandfathered" to polluters.
7. Low income households will need compensation.
8. Half of the funds collected from the sale of permits can provide compensation for low income families.
9. Areas that rely on coal-based power stations will need specific support.
10. Australia should lead the way in making carbon capture storage (for example through biosequestration) commercially viable
11. A new research council should be set up.
12. $3 billion per year or 20% of the revenue raised from auctioning permits (whichever is greatest) should be allocated to low-emissions technology R&D
13. The Building Australia Fund should also be used for energy infrastructure.
14. Australia should help Asian countries reduce their levels of emissions.
15. Energy prices will rise under the scheme and will hit low income households hardest