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Australia Carbon Pricing

April 26, 1992 – Ros Kelly abjures a carbon tax

Thirty two years ago, on this day, April 26th, 1992 the entirely sensible idea of a carbon tax was killed off (for now), with the Australian Federal Environment Minister running up the white flag again.

A spokesman for Environment Minister Ros Kelly said the Government was not considering a “carbon tax”, which would hit fossil fuels such as petrol and coal. Instead – at least as a first step – it favoured “no-regret” options. These were measures to increase energy efficiency, which will have overall economic benefits even if dire greenhouse scenarios don’t eventuate. The spokesman said: “This Government would be delinquent if it did not take a precautionary rather than a cavalier approach to the greenhouse effect. The worst-case scenarios are terrifying.”

BCA spokesman Mark Emerson said Australia should not support the EC proposal for a commitment by developed countries to stabilise greenhouse gas emissions by the year 2000. “Business is concerned that, against the background of the enormous scientific uncertainties, inappropriate policy responses might be applied which would have devastating economic and social effects without any discernible environmental benefits,” he said. “None of Australia’s regional trading partners or competitors – except New Zealand – will agree to the EC option.”

Skinner, S. 1992. Greenhouse: Aust yet to set its policy. Sun Herald, 26 April, p. 13.

The amount of carbon dioxide in the air was roughly 356.5ppm. As of 2024 it is 425ppm, but check here for daily measures. 

The context was that the idea of a carbon tax had been raised within the Ecologically Sustainable Development groups. Entirely sensible idea. And it had sent business or elements of business into a total meltdown. And now, under the new Keating government, it was off the table. But of course, Kelly would be going to the Rio Earth Summit in a couple of months. And the headbangers didn’t want her trying to sneak things in via the back door. 

What we learn is that simple straightforward ideas that would have helped were defeated by powerful greedy actors who had only their own short-term power and comfort in mind. And politicians went along for the ride. 

What happened next, Rio happened. There was another attempt to get a carbon tax through in 94/95, after Ross Kelly was forced to resign over sports routes. And it failed. And we as a species failed 

What do you think? Does this pass the ‘so what?’ threshold? Have I got facts wrong? Interpretation wrong? Please do comment on this post, unless you are a denialist, obvs.

Also on this day: 

April 26, 1998 – New York Times front page expose on anti-climate action by industry

April 26, 1998 – “Industrial Group Plans to Battle Climate Treaty”

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