Garnaut Climate Change Review - AbsoluteAstronomy.com

The Garnaut Climate Change Review was a study by Professor Ross Garnaut

Ross Garnaut

Ross Gregory Garnaut AO is a Distinguished Professor of Economics at the Australian National University and both a Vice-Chancellor's Fellow and Professorial Fellow of Economics at The University of Melbourne....

, commissioned by then Opposition Leader, Kevin Rudd

Kevin Rudd

Kevin Michael Rudd is an Australian politician who was the 26th Prime Minister of Australia from 2007 to 2010. He has been Minister for Foreign Affairs since 2010...

and by the Australia

Australia

Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...

n State and Territory

States and territories of Australia

The Commonwealth of Australia is a union of six states and various territories. The Australian mainland is made up of five states and three territories, with the sixth state of Tasmania being made up of islands. In addition there are six island territories, known as external territories, and a...

Governments on 30 April 2007. After the election on 24 November 2007, Prime Minister of Australia

Prime Minister of Australia

The Prime Minister of the Commonwealth of Australia is the highest minister of the Crown, leader of the Cabinet and Head of Her Majesty's Australian Government, holding office on commission from the Governor-General of Australia. The office of Prime Minister is, in practice, the most powerful...

Kevin Rudd

Kevin Michael Rudd is an Australian politician who was the 26th Prime Minister of Australia from 2007 to 2010. He has been Minister for Foreign Affairs since 2010...

confirmed the participation of the Commonwealth Government

Government of Australia

The Commonwealth of Australia is a federal constitutional monarchy under a parliamentary democracy. The Commonwealth of Australia was formed in 1901 as a result of an agreement among six self-governing British colonies, which became the six states...

in the Review.

The Review examined the impacts of climate change

Climate change

Climate change is a significant and lasting change in the statistical distribution of weather patterns over periods ranging from decades to millions of years. It may be a change in average weather conditions or the distribution of events around that average...

on the Australian economy, and recommended medium to long-term policies and policy frameworks to improve the prospects for sustainable prosperity. Some observers have remarked that the Garnaut Review would be Australia's version of the Stern Review

Stern Review

The Stern Review on the Economics of Climate Change is a 700-page report released for the British government on 30 October 2006 by economist Nicholas Stern, chair of the Grantham Research Institute on Climate Change and the Environment at the London School of Economics and also chair of the Centre...

. A number of forums were held around Australia to engage the public on various issues relating to the Review. The Secretariat to support the Review was based in the Victorian Department of Premier and Cabinet. The final report of the Garnaut Review was delivered on 30 September 2008.

Interim report - 21 February 2008

The interim report of the Garnaut Review was released on 21 February 2008. The executive summary states:

"Adaptation to climate change, energy efficiency and the distribution of the costs of climate change across households and regions are not considered in any detail in the report, but will be addressed in the final report."

"Australia’s interest lies in the world adopting a strong and effective position on climate change mitigation. This interest is driven by two realities of Australia’s position relative to other developed countries: our exceptional sensitivity to climate change: and our exceptional opportunity to do well in a world of effective global mitigation. Australia playing its full part in international efforts on climate change can have a positive effect on global outcomes. The direct effects of Australia’s emissions reduction efforts are of secondary importance."

Interim greenhouse gas

Greenhouse gas

A greenhouse gas is a gas in an atmosphere that absorbs and emits radiation within the thermal infrared range. This process is the fundamental cause of the greenhouse effect. The primary greenhouse gases in the Earth's atmosphere are water vapor, carbon dioxide, methane, nitrous oxide, and ozone...

emissions reduction targets for 2020 to be set in 2008 are supported in addition to targets for 2050. An emissions trading scheme (ETS) is also supported, but there is little discussion as to why it is preferred over a carbon tax. There seems to be support for the continued public funding of research into carbon capture and storage

Carbon capture and storage

Carbon capture and storage , alternatively referred to as carbon capture and sequestration, is a technology to prevent large quantities of from being released into the atmosphere from the use of fossil fuel in power generation and other industries. It is often regarded as a means of mitigating...

in spite of the failure of the FutureGen

FutureGen

FutureGen is a US government project announced by President George W. Bush in 2003; its initial plan involved the construction of a near zero-emissions coal-fueled power plant to produce hydrogen and electricity while using carbon capture and storage....

project in the US to maintain public funding.

Forestry and deforestation

The impact of deforestation is only considered for other countries, especially Indonesia

Indonesia

Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...

and Papua New Guinea

Papua New Guinea

Papua New Guinea , officially the Independent State of Papua New Guinea, is a country in Oceania, occupying the eastern half of the island of New Guinea and numerous offshore islands...

. The report does not consider forestry or deforestation in Australia. This contrasts the McKinsey

McKinsey & Company

McKinsey & Company, Inc. is a global management consulting firm that focuses on solving issues of concern to senior management. McKinsey serves as an adviser to many businesses, governments, and institutions...

Report on Greenhouse Gas Reduction which places forestry as the sector with the most significant greenhouse gas

Greenhouse gas

abatement potential in Australia for reductions by 2020.

Draft report - 4 July 2008

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

The main conclusions of the report are

An ETS is preferred to a tax or hybrid scheme.
The ETS could have a transitional phase from 2010–2012
Permits could be sold at a "low, fixed" price during the transitional phase.
Spreading the costs across the economy will be achieved by including as many sectors as possible
Transport should be included in the emissions trading scheme ("ETS").
Emissions permits should be sold by competitive auction, and not given away or "grandfathered" to polluters.
Low income households will need compensation.
Half of the funds collected from the sale of permits can provide compensation for low income families.
Areas that rely on coal-based power stations will need specific support.
Australia should lead the way in making carbon capture storage (for example through biosequestration
Biosequestration
Biosequestration is the capture and storage of the atmospheric greenhouse gas carbon dioxide by biological processes.This may be by increased photosynthesis ; by enhanced soil carbon trapping in agriculture; or by the use of algal bio sequestration to absorb the carbon...

) commercially viable
A new research council should be set up.
$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
The Building Australia Fund should also be used for energy infrastructure.
Australia should help Asian countries reduce their levels of emissions.
Energy prices will rise under the scheme and will hit low income households hardest

Projected impacts of climate change

The report indicated that in the absence of a global effort to reduce CO₂ emissions, climate change would have severe adverse effects on Australian agriculture

Agriculture

Agriculture is the cultivation of animals, plants, fungi and other life forms for food, fiber, and other products used to sustain life. Agriculture was the key implement in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that nurtured the...

and on the natural environment

Natural environment

The natural environment encompasses all living and non-living things occurring naturally on Earth or some region thereof. It is an environment that encompasses the interaction of all living species....

. Irrigation

Irrigation

Irrigation may be defined as the science of artificial application of water to the land or soil. It is used to assist in the growing of agricultural crops, maintenance of landscapes, and revegetation of disturbed soils in dry areas and during periods of inadequate rainfall...

in the Murray-Darling Basin

Murray-Darling Basin

The Murray-Darling basin is a large geographical area in the interior of southeastern Australia, whose name is derived from its two major rivers, the Murray River and the Darling River. It drains one-seventh of the Australian land mass, and is currently by far the most significant agricultural...

would be severely affected, and in the most adverse scenarios, would cease altogether. Severe damage, and even destruction of the Great Barrier Reef

Great Barrier Reef

The Great Barrier Reef is the world'slargest reef system composed of over 2,900 individual reefs and 900 islands stretching for over 2,600 kilometres over an area of approximately...

is also a likely impact of rapid climate change.

Final report

The Garnaut report was released on 30 September 2008. The report recommended that Australia push internationally for a carbon dioxide equivalent concentrations of 450 ppm, which would commit Australia to reductions of 25% on 2000 levels by 2020, and 90% by 2050. He also recommended that Australia have a fall-back position of 550 CO₂ -e concentration, which would entail a 10% reduction in emissions by 2020, and an 80% reduction by 2050. He further recommended that, should all negotiations collapse at the Copenhagen summit, Australia should still reduce its emissions by 5% by 2020 on 2000 levels.

The report's key recommendation was to implement an emissions trading

Emissions trading

Emissions trading is a market-based approach used to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants....

scheme. However, the report did not recommend free permits be granted to major polluters, or that transport sector be protected by special fossil fuel subsidies or tax excise cuts.

The report also recommended that up to $1 billion should be made available for matched funding for investment in reducing emissions in coal power generation

Carbon capture and storage

, as a form of preemptive structural adjustment

Structural adjustment

Structural adjustments are the policies implemented by the International Monetary Fund and the World Bank in developing countries. These policy changes are conditions for getting new loans from the International Monetary Fund or World Bank, or for obtaining lower interest rates on existing loans...

assistance.

Emission reductions from the agriculture and forestry sectors were excluded from the final report.

Professor Garnaut said that the overall cost to the Australian economy of tackling climate change under both the 450ppm and 550ppm scenarios was manageable and in the order of 0.1-0.2 per cent of annual economic growth to 2020.

The report estimated mitigation costs for 450ppm at almost a percentage point more than 550pmm mitigation of the present value of GNP through the 21st century. The report stated that stronger mitigation is justified by insurance value and non-market value benefits in the 21st century and much larger benefits beyond, and that the costs of action are less than the costs of inaction.

Reaction

The report was criticised by the Australian Chamber of Commerce and Industry

Australian Chamber of Commerce and Industry

The Australian Chamber of Commerce and Industry has been the peak council of Australian business associations for 105 years and traces its heritage back to Australia’s first chamber of commerce in 1826.Its motto is “Leading Australian Business.”...

for the economic impact that reducing greenhouse gas emissions would have.

It was also heavily criticised by environmental organisations, including Friends of the Earth

Friends of the Earth

Friends of the Earth International is an international network of environmental organizations in 76 countries.FOEI is assisted by a small secretariat which provides support for the network and its agreed major campaigns...

and Rising Tide

Rising Tide North America

Rising Tide North America is a grassroots network of groups and individuals in North America who take action against the root causes of climate change and work towards a just transition to a non-carbon society. Rising Tide North America is part of an international network dedicated to building a...

. The Australian Conservation Foundation

Australian Conservation Foundation

The Australian Conservation Foundation is an Australian non-profit, community-based environmental organisation focused on advocacy, policy research and community outreach.-History:...

praised the report for advocating a 450 ppm target, but was critical of Professor Garnaut’s 550ppm second best option and described the 2020 target of 10 per cent as weak.

Dr Clive Hamilton

Clive Hamilton

Clive Charles Hamilton AM FRSA is an Australian public intellectual and Professor of Public Ethics at the Centre for Applied Philosophy and Public Ethics and the Vice-Chancellor's Chair in Public Ethics at Charles Sturt University. He is the Founder and former Executive Director of the The...

was heavily critical of the report, arguing that it reduced global expectations of what should be aimed for, naively exposed Australia's negotiating tactics to the international diplomatic sphere, alienates both the Australian public and the international community, misjudges the time frames necessary to avoid dangerous climate change

Avoiding Dangerous Climate Change

The related terms "avoiding dangerous climate change" and "preventing dangerous anthropogenic interference with the climate system" date to 1995 and earlier, in the Second Assesment Report of the International Panel on Climate Change and previous science it cites.In 2002, the United Nations...

, gives Australia numerous special deals, and would be rejected by the international community.

Responses from political parties were mixed. Australian Greens

Australian Greens

The Australian Greens, commonly known as The Greens, is an Australian green political party.The party was formed in 1992; however, its origins can be traced to the early environmental movement in Australia and the formation of the United Tasmania Group , the first Green party in the world, which...

leader Bob Brown

Bob Brown

Robert James Brown is an Australian senator, the inaugural Parliamentary Leader of the Australian Greens and was the first openly gay member of the Parliament of Australia...

suggested that the report demonstrated that reducing greenhouse gas emissions would not come at the expense of Australia's economic growth. Climate Change Minister Penny Wong

Penny Wong

Penelope "Penny" Ying-yen Wong , is an Australian Labor Party senator for South Australia and the Federal Minister for Finance and Deregulation. Wong was the first Australian Minister for Climate Change and Water. Her appointment was amended on 26 February 2010, by the Prime Minister, to the...

did not comment directly on the report but said that economic responsibility needed to be considered in responding to the report, and that the Government would wait for Treasury

Department of the Treasury (Australia)

The Department of the Treasury is an Australian Government department. Its role is to focus and develop economic policy.-History:The Commonwealth Treasury was established in Melbourne in January 1901....

modelling on climate change mitigation before responding.

Economist John Humphreys criticised the report, arguing that massively overstating the projected costs of global warming (about three times the estimate of the Stern Report), and argued that therefore the costs of action in fact exceed the costs of inaction. However, it must be recognised that the Stern Report relates the cost of dealing with climate change in the United Kingdom to the GDP of the United Kingdom, whilst the Garnaut report compares these aspects in Australia and so such a comparison is not necessarily apt.

External links

The Garnaut Climate Change Review
Climate change will probably beat us: Garnaut
Article on Ross Garnaut's Climate Change Review by Guy Pearse
Guy Pearse
Guy Pearse is an Australian author and a Research Fellow at the at the University of Queensland. His first book titled High & Dry: John Howard, climate change and the selling of Australia's future was published in 2007....

, July 2008, The Monthly
The Monthly
The Monthly is an Australian national magazine of politics, society and the arts, which is published eleven times per year on a monthly basis except the December/January issue. Founded in 2005, it is published by Melbourne property developer Morry Schwartz...

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