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Australia Carbon Pricing

July 25, 2008 – More economic “modelling” against an emissions trading scheme

Fifteen years ago, on this day, July 25th, 2008 the “sky will fall if we do anything to reduce emissions and here is some economic modelling to ‘prove’ it” bullshit continued, as the Electricity Supply Association of Australia (ESAA) release ACIL Tasman modelling, which of course gets uncritical splashes in the Murdoch press.

At the same time, will-be Liberal leader Malcolm Turnbull joins then-Liberal leader Brendan Nelson in saying “delay the implementation of an emissions trading scheme.”

Federal opposition treasury spokesman Malcolm Turnbull has fallen into step behind his leader, declaring an emission trading scheme shouldn’t be introduced until it is in Australia’s interest.

In government, the coalition supported a start date of 2012, but earlier this week leader Brendan Nelson indicated it would reject the legislation until big polluting countries agreed to reduce their emissions.

Mr Turnbull, a former environment minister, had steadfastly supported a 2012 start date – until now.

“An emissions trading scheme shouldn’t start until it is ready and until it is in Australia’s interest for it to start,” Mr Turnbull told ABC Radio.

“The government is definitely rushing this, 2010 is far too soon.”

AAP, 2008. Govt ‘rushing’ carbon trading: Turnbull. AAP, 25 July. 

The amount of carbon dioxide in the air was 390ppm. As of 2025, when this post was published, it is 430ppm. This matters because the more carbon dioxide in the air, the more heat gets trapped. The more heat, the more extreme weather events. You can make it more complicated than that if you want, but really, it’s not. Fwiw, I have a tattoo of the Keeling Curve on my left forearm.

The broader context was the use of “independent” economic modelling to say that any emissions reductions efforts would lead directly to Stone Age cannibalism was a favoured tactic of the incumbents (why change a game that had been winning since the early 1990s?).

The specific context was John Howard, who had killed off two Emissions Trading Scheme proposals brought to Cabinet in 2000 and 2003 had been forced into a u-turn in late 2006. The next Prime Minister, Kevin Rudd, had said he’d bring an ETS in, and various incumbent outfits were trying to delay the start date, while also creating all sorts of loopholes and give-aways.

What I think we can learn from this is that the opponents of policy always have fall-back positions. If they can’t stop something in the short-term, they’ll try to soften the blows. This also means that the policy will probably be less effective and easier to reverse in future. A nice little ancillary benefit…

What happened next – Rudd, and his underling Penny Wong, continued to give ground and give ground. Eventually Rudd’s CPRS scheme failed to get through parliament, thanks to new opposition leader Tony Abbott. Rather than call a double-dissolution election, the spineless Rudd pivoted, and tanked his credibility and popularity, which had remained inexplicably high until that point. All this led indirectly to serious blood-letting and bed-wetting. The Australian Labor Party learned all the wrong lessons, and is now just the PR mouthpiece and stabvest for the mining sector. Oh well, so it goes.

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: 

July 25, 1977 – New York Times front page story “scientists foresee serious climate changes”

July 25, 1989 – Australian Environment Minister admits was blocked by Treasurer on emissions reduction target

July 25, 1996 – Australian PM John Howard as fossil-fuel puppet

July 25, 1997 – US says, in effect, “screw our promises, screw the planet”

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