Treasury today has released a major report with extensive macro-economic modelling on the economics of climate change mitigation.
The Treasury modelling considers the macro-economic and sectoral outcomes for Australia of four emissions reduction scenarios, all of which assume a global agreement and a global price on carbon.
The BCA has not yet had time to examine the report in detail, but its initial assessment notes the modelling, like the BCA’s previous work, confirms that a global agreement is essential to achieving affordable climate change mitigation in Australia.
It highlights in chapter six that the impact of emissions trading on individual companies has not been explored.
The BCA report, Modelling Success: Designing an ETS that Works, fills this gap.
Modelling Success is complementary to the Treasury modelling.
This is because the BCA paper provides a detailed analysis of the impact of the currently proposed Carbon Pollution Reduction Scheme on affected businesses in the absence of a global agreement.
The BCA looks forward to continuing to consult with the federal government to ensure the final detail of its emissions trading scheme addresses these specific business issues.