A global carbon market will be fundamental to changing the behaviour of Governments, businesses and the community – which is critical to shifting the high-emissions global economy to a lower-emissions global economy.
 
The ABA was responding to today's launch of the 'Carbon Pollution Reduction Scheme Green Paper' in Canberra by the Minister for Climate Change and Water, Senator The Hon. Penny Wong.
 
Ian Gilbert, Acting Chief Executive of the ABA, said: “This is a very important step taken by the Federal Government and the banking sector is supportive of introducing a Carbon Pollution Reduction Scheme, which includes a carbon market for Australia.”
 
“The ABA supports a market-based solution. It is in the long-term interest of the Australian economy, society and environment to take early action so that Australia can make a smooth transition, address the vulnerabilities and take advantage of the opportunities presented by climate change.”

“Reducing Australia’s greenhouse gas emissions is an essential part of mitigating the effects of climate change and helping shape a global solution.”

The ABA recognises the objective of the Government’s Carbon Pollution Reduction Scheme is greenhouse gas abatement and the primary mechanism to facilitate a reduction in emissions is via a carbon market for Australia commencing in 2010.

A carbon market should form part of Australia’s response to address the impacts of climate change and achieve sustainable reductions in greenhouse gas emissions in Australia and around the globe. However, while the introduction of a carbon price is critical, it is unlikely to be sufficient to advance the development of, and investment in, low carbon technologies and clean development initiatives.

Mr Gilbert said: “The ABA also supports other efforts to foster the development of expertise in low emissions technologies, renewable energy technologies and emissions reductions practices.”

"Taking early action, adopting a comprehensive policy response and building knowledge and capacity are the key principles in achieving a sustainable response to climate change that focuses on delivering both real economic outcomes and real environmental outcomes."

“The ABA is pleased that the Government is being mindful of the need to balance getting the scheme design right and not prolonging investment uncertainty.”

“Market participants need efficiency, businesses and investors need certainty, and the community needs to understand the likely impact on their living standards.”

“The ABA is also pleased that the Government has outlined in the Green Paper commitments to use revenue raised by auctioning carbon pollution permits to help households and businesses adjust to the introduction of the scheme and invest in clean energy options, such as assistance through the tax and payments system and the introduction of the Climate Change Action Fund.”

The ABA acknowledged the banking industry’s initial comments on the carbon market, broader scheme design and complementary policies have been included in the Green Paper.

The banking industry looks forward to working with the Government and providing comments on the detail of the Green Paper.

Notes for editors:

The ABA has previously stated its position on climate change and an Emissions Trading Scheme.
These statements can be found on the ABA website under Policies and Submissions/Climate Change.