1. Robyn Briese

2. Presentation structure  Commonwealth Carbon Pollution Reduction Scheme (CPRS)  Other state/territory and federal measures  The CPRS and complementary measures  Issues for Copenhagen

3. Australia’s path to an ETS 2004-2007 Various National Emissions Trading Taskforce reports 2006 Stern Review, changed level of public and media interest 2007 Prime Ministerial Task Group on Emissions Trading 2008 Garnaut Climate Change Review and Commonwealth Green Paper 2010 CPRS start up

4. Australia’s proposed CPRS – selected aspects  Covers all 6 Kyoto GHGs & emissions from stationary energy, transport, fugitive emissions, industrial processes, waste and forestry on an ‘opt-in’ basis  Majority of permits to be auctioned  Transitional ‘price-cap’ for at least first 4 years  At start up - no offsets without liability

5. Other climate change mitigation measures in Australia  Baseline and credit ETS (NSW, ACT)  Energy efficiency/low emissions and renewable energy targets  Subsidies for the deployment of low emissions or renewable energy and energy efficiency measures  Mandatory performance standards  Voluntary abatement schemes  Information based interventions (mandatory labelling, provision of best practice information, emissions awareness)  Support for research and development (low emissions technologies and energy efficiency)  Emissions related conditions on development approvals  Regulation of native vegetation clearing

6. Measures complementary to an ETS should:  Reduce the cost of emissions abatement by addressing non-price market failures  Be an interim/transitional measure implemented before the ‘carbon price’ is established  Ensure that the impact of the ETS is equitable  Assist in achieving other policy objectives  Target non covered sectors of the economy

7. Issues for Copenhagen  Binding targets covering a significant proportion of GHG emissions necessary for stringent emissions cuts required  Complementary measures analysis can usefully inform multi-track approach  International system should avoid offsets without liabilities  Investment in renewables & energy efficiency is a win-win for developed & developing countries & can lower the cost of developing countries entering into binding agreements in the medium to long term

8. There are times in the history of humanity when fateful decisions are made. The decision this year and next on whether to enter a comprehensive global agreement for strong action on climate change is one of them…. If there is no such agreement, the outlook is an unhappy one. On a balance of probabilities, the failure of our generation would lead to consequences that would haunt humanity until the end of time. (Garnaut Climate Change Review, 2008 at 591, 597)