THE Rudd Government is prepared to stare down a demand to compensate power producers for the effects of the carbon trading scheme foreshadowed in its review of climate change policy.
Power producers say that without structural assistance the value of their assets will fall sharply and investors will be reluctant to commit to new plants, causing power shortages.
The Australian, ‘No to carbon payout claims’
SINCE May 2002, when interest rates again started to rise, home loans in Australia have grown to about a trillion dollars today. Business borrowing has now passed $700 billion.
Were interest rates 3 per cent lower today, as they were in 2002, the national annual interest bill would be about $50 billion less. And although there may now be signs of changing buyer behaviours, such sustained lifts in interest costs have had little observable impact upon the appetites of households and businesses for debt, so far.
In the same period, petrol costs have increased by about 10 cents a litre per year. Were petrol prices the same today as in 2002, the national fuel bill would be $25 billion lower each year. Yet we are buying more cars, travelling further and using more petrol than ever before even as petrol prices continue to lift.
The Australian, ‘Helping neighbours is key to cuts’
STRIKING greenhouse gas reduction deals with big developing countries, particularly our trading partners, might be a better method of dealing with climate change than pursuing a plan focused on imposing increasing costs on domestic energy users.
Writing in the opinion page of The Australian today, leading corporate figure Ziggy Switkowski questions whether relying solely on a gradual build-up of energy costs is the most effective strategy for achieving reductions in greenhouse gas emissions.
Dr Switkowski’s entry into the debate comes as the Rudd Government formulates Canberra’s response to climate change, with its adviser Ross Garnaut arguing that the planned carbon-trading scheme should not compensate coal-fired power stations.
The Australian, Greenhouse deals ‘beat carbon trading’
Reminder: New Paper from the Virtual World: Stabilizing Climate Requires Near-Zero Emissions
Jennifer Marohasy BSc PhD has worked in industry and government. She is currently researching a novel technique for long-range weather forecasting funded by the B. Macfie Family Foundation.