Twenty-six years ago, on this day, August 9, 1999, the Australian Financial Review deigned to cover climate change…
The introduction of a domestic greenhouse gas emissions trading scheme could generate $7 billion in annual revenue, enabling government to cut the company tax rate to 30 per cent, abolish accelerated depreciation and reduce payroll tax by 60 per cent, according to a paper by the Australia Institute.
“Emissions trading has the potential to become an important tool in environmental protection and economic and fiscal management,” the institute’s Mr Clive Hamilton and Mr Hal Turton say in their paper Business Tax and the Environment Emissions trading as a tax reform option, released last week.
1999 Hordern, N. 1999. Emissions trading call `half-baked’. The Australian Financial Review, 9 August, p.9.
The amount of carbon dioxide in the air was 368ppm. 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 that putting a price on things you don’t like, to encourage decreased use (cigarettes, anyone?) is hardly controversial, especially if you’re going to use money raised to explore alternatives.
Or rather, it is VERY controversial to those people currently making money and wanting that to continue. Two carbon tax proposals had been defeated already, and attention therefore switched to “emissions trading schemes.”
The specific context was that Australia had signed (but not ratified) the Kyoto Protocol, and so ways and means to ‘reduce’ Australia’s emissions (it had a 108% target!) were being investigated, not just by The Australia Institute but also other outfits.
What I think we can learn from this – the simplest and in some ways least significant actions turned out to be, well, impossible.
What happened next – Prime Minister John Howard killed off two proposals for Emissions Trading Schemes, in 2000 and 2003. States got interested in doing a “ground-up” scheme among various states. This never really got off the ground, before action turned back to the Federal level in 2006-7.
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:
August 9, 1955 – Canadian physicist Gilbert Plass submits his paper
August 9, 2001 – OECD calls on Australia to introduce a carbon tax. Told to… go away…
