ERF auction spends big for just 7 per cent #climate emissions reduction for 2030

This article was originally published at nofibs.com.au

Results from the third Direct Action Emissions Reduction Fund (ERF) auction for emissions reduction was announced with 50.5 million worth of offsets at $10.23 each. So 67 per cent of the $2.55 billion budget has been spent to achieve less than 7 per cent of the emissions reduction goal by 2030.

This effort amounts to less than 3 per cent of what is required for Australia's fair share in global emissions reduction for staying under the 2 degrees C limit as enshrined in the Paris Agreement. Environment Minister Greg Hunt signed the Paris agreement in New York on 22nd April 2016. Australia also agreed with aspiring to meet the 1.5 degrees target, so even more effort is required from Australian climate policy.

But the Liberal National Party Government main policy instrument for reducing emissions is the Emissions Reduction Fund, which is clearly inadequate. Even our 2030 climate target of 26-28 per cent reduction by 2030 is ranked as inadequate.

Climate study: Australia falling behind in indirect carbon pricing

A report commissioned by the Climate Institute has analysed the indirect carbon price in the electricity generation sectors of six countries: Australia, UK, USA, China, Japan and South Korea, with Australia languishing at the bottom just ahead of South Korea.

"A direct and broad based price tag on pollution is required if Australia is to meet its targets at lowest short and long-term cost. However, it is also critical to ensure that our international competitiveness is not lost to other countries gaining early mover advantages in clean energy investment and reducing their economies' dependence on pollution," said Mr Erwin Jackson, Deputy CEO of the Climate Institute.

"Countries such as India are already taxing imports of pollution intensive products like coal. Putting a price tag on pollution is also insurance against possible trade measures aimed at highly polluting exports." said Mr Jackson.