The economic, social and environmental risks are substantial both if we take no action on global warming and if we take the wrong action.

Australia should take a long-term and risk management approach to global warming which incorporates both mitigation and adaptation elements, is calibrated to international responses and builds on our skills, resources and regional location.

This can best be done through a well-designed emissions trading scheme that can be linked internationally over time and that includes mechanisms to both address competiveness risks in the absence of a global price on greenhouse emissions, and support the smooth transition of Australia’s electricity sector to low-emissions technologies.

Submission to the Select Committee on Climate Change Policy on the proposed Carbon Pollution Reduction Scheme