This submission outlines a series of principles around a ‘cap-and-trade’ scheme to tackle greenhouse emissions as part of a framework to help provide the foundation for an integrated global solution to emissions reduction.

It argues that an effective, sustainable response to climate change is ultimately about moving from our current high-emission global economy, of which Australia is part, to a low-emission global economy. It recognises that the challenge of controlling emissions and hence climate change will be won or lost at a global level, and that the most effective system to reduce emissions is one primarily based on a market solution.

Given the scope and scale of the transition implicit in effectively reducing emissions, a multi-faceted approach involving a range of
emissions reduction strategies is critical. The necessity of a global-based solution does not mean jurisdictions such as Australia cannot make a significant contribution to such a solution, or demonstrate leadership by formulating responses that can be used as a template or guide for other countries to adopt.

Submission to the Prime Ministerial Task Group on Emissions Trading