Category: Carbon Pricing

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Australia Carbon Pricing

September 4, 2000 – industry says sky will fall if there’s a carbon tax

Thirty three years ago, on this day, September 4, 2000, industry did another of its ‘the sky will fall’ efforts.

Victorian economic growth could be slashed by more than 2 per cent, thousands could lose their jobs and the aluminum industry could close if a strict anti-greenhouse gas regime is introduced, according to a landmark study.

The study by the Allen Consulting Group has estimated that Victoria’s gross state product would be between 1.3 per cent and 2.6 per cent smaller in 2012 if an emissions trading system or carbon tax scheme were introduced to combat Australia’s growing rate of unwanted greenhouse gas emissions.

Hopkins, P. 2000. Study Warns Of Greenhouse Gas Mayhem. The Age, 4 September, p1.

The amount of carbon dioxide in the air was roughly 369.7ppm. As of 2023 it is 423ppm, but check here for daily measures. 

The context was that the Victorian government was proposing things that industry did not like. So that was enough for yet another “oh my god the sky will fall if you so much as tax a single molecule of hydrocarbons, we will all starve to death.” These economic models get put in reports and get turned into press releases and speeches which are dutifully reported by stenographers to power.

What I think we can learn from this is that these nonsense economic modeling reports are a favorite weapon in the war against sanity and the public good.

What happened next 

I am a bad historian, I haven’t bothered to go and look at what happened next. Did the government find the backbone to stare down this report? Sometimes they can. It depends on all manner of things not just the particular courage of the particular minister.

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.

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Australia Carbon Pricing

September 1, 1998 – Sydney Futures Exchange foresees a bright future. Ooops.

Twenty years ago, on this day, September 1, 1998, carbon trading seemed to be coming to Australia…

SYDNEY (Dow Jones)–Sydney Futures Exchange said Tuesday it has formally established the Australian Emissions Trading Forum to provide opportunities for members to exchange information on greenhouse issues and encourage debate on emissions trading.

An advisory committee to the AETF, comprising representatives from a range of key industry and government agencies, has also been formed, the SFE said in a statement.

“There is growing interest in the prospect of greenhouse gas emissions trading as a means of meeting our greenhouse target, however, many potential stakeholders have found it difficult to obtain information about how the various schemes might develop,” Les Hoskings, SFE’s chief executive said.

At the U.N. climate change convention in Kyoto, Japan, in December 1997, a number of developed countries made binding targets to reduce greenhouse gas emissions. Australia has committed to limit emissions to 108% of 1990 levels.

1998 Sydney Futures Exchange Sets Up Forum On Emissions Trading. September 1 Dow Jones International News

See also Fullerton- 31 August 1998 http://www.abc.net.au/pm/stories/s48208.htm

The amount of carbon dioxide in the air was roughly 366ppm. As of 2023 it is 421ppm, but check here for daily measures. 

The context was that various people thought that there would be a rush towards emissions trading, once Australia had its own national scheme and had ratified the Kyoto Protocol (which it had already signed).. The foreign money would come pouring in from nations where cutting carbon was harder (e.g. Japan, which had gone seriously energy efficient after the 1973 oil shock). These nations would instead of making expensive local investments could instead buy some trees in New South Wales and say “job done.” Meanwhile the middlemen and the bankers would get seriously rich. That was the idea, that was the cunning plan.

What I think we can learn from this is that smart people with an eye to the main chance are always coming up with cunning plans. Pity that these didn’t help with the decarbonization effort. Oh well

What happened next

The Sydney Trading Futures thing shut down in 2000 just before the Minchin/Hill Cabinet showdown… 

It get off the ground basically emissions trading didn’t either in Australia and the emissions kept climbing and climbing at least globally (t’s all a bit dodgy depending on how you do your accounting)

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.

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Australia Carbon Pricing

August 30, 1989 – A global tax on emissions?!

Thirty four years ago, on this day, August 30 1989 the Australian newspaper the Canberra Times reported on the crazy ideas that … might have made a difference.  What a stupid stupid species we turned out to be.

“A third set of more imaginative options are ruled out as too costly. These include a global tax on carbon emissions, major investment in renewable energy, and the banning of coal.”

Guest, I. 1989. World Bank tackles global warming. Canberra Times, 30 August, p. 9.

The amount of carbon dioxide in the air was roughly xxxppm. As of 2023 it is 423ppm, but check here for daily measures. 

The context was that debates about the responses to climate change – what we used to call the greenhouse effect – were well underway, because various nations were adopting or thinking about adopting emissions reductions targets such as the Toronto Target. What’s entertaining in this is the question “compared to what?” So, if there had been a global carbon emissions tax and the money raised had gone into investing in renewable energy and compensating the workers affected by the demise of coal, then we might have gotten somewhere… But it would all have been too costly to save the world.

What I think we can learn from this is that the ideas we needed were there but turning ideas into a political program requires more skill and resources than we had. This is largely (but not totally) because of the veto power of business and the obduracy of large technical systems and so on.

What happened next

We never got a carbon tax. We got attempts at emissions trading schemes. The so-called major investments in renewables came very late, too late. And although we may exit coal, we will do it far too late.

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.

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Australia Carbon Pricing

August 22, 2011 – anti-carbon pricing rally flops

Twelve years ago, on this day, August 22, 2011 , another anti-”carbon tax” rally flops

Come 22 August [2011], the event is a screaming flop. Three hundred people gather on the lawns outside Parliament House, and a ragtag of trucks circle it blowing their horns. Jones, alongside his mate Tony Abbott, addresses the crowd who all holler and howl and demand Gillard’s head over the carbon pricing scheme. Perhaps aware of what a dud he’s partly responsible for, Jones sensationally accuses the ACT Police of stopping ‘thousands’ from attending the rally and blocking ‘hundreds of trucks’ at the ACT border – as he describes it, ‘the most disgraceful thing to happen to our democracy.’

(Walsh, 2013:54-5) The Stalking of Julia Gillard      

An angry crowd of about 300 people gathered on the Australian Parliament lawns as 200 vehicles from all over the country rolled around Canberra blowing their horns, for what protesters called the convoy of no confidence.      Cummings, T. 2011. When things turned ugly. ABC News, 23 August.

There was an ugly confrontation in Canberra yesterday, one that could potentially have been very nasty indeed.

It had nothing to do with politics, nothing to do with the Convoy of No Confidence that rolled into our nation’s capital, nothing to do with the carbon tax, or live exports, or any of that.

and

I wonder whether the Convoy of No Confidence will be an unexpected pivot point in Australian politics.

Carpenter, N. 2011. Convoy Contempt could be of some consequence. The Drum, 29 August. http://www.abc.net.au/news/2011-08-29/carpenter-convoy-contempt-could-be-of-some-consequence/2860718

The amount of carbon dioxide in the air was roughly 369.8ppm. As of 2023 it is 423ppm, but check here for daily measures. 

The context was that the first half of 2011 had been totally dominated by the question of an emissions trading scheme. Tony Abbott had made all sorts of outlandish claims about the cost and risk there had been marches and protests, most notoriously on March 23rd in Canberra. This was an attempt to show enormous opposition. But I think many people were tired and bored and realised that by now they had lost, and that Gillard was going to be successful in getting the legislation through.

What I think we can learn from this is that it is not just left wing progressive protest groups who are prone to burnout and exhaustion. There is an emotacycle collapsing also for those who are trying to stand in the way of climate action, who  are also prone to burnout and exhausting themselves.

What happened next 

Julia Gillard’s legislation did indeed get through. The scheme started on the 1st of July 2012 and was then abolished by the next government headed by Tony Abbott. Emissions started climbing again. (There is some argument that the perceived success of the emissions trading scheme was down to more hydro from Tasmania in the national electricity grid at the time).

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.

References/further reading

 Willingham, R. 2011. Convoy of no confidence runs short on revs. Sydney Morning Herald, 23 August 2011.

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Australia Carbon Pricing

August 17, 1998 – Emissions Trading considered (again)

Twenty five years ago, on this day, August 17, 1998, an Australian Parliament committee looks at Emissions Trading as the ‘way forward’.

House of Representatives Standing Committee on Environment, Recreation and the Arts into the possible introduction of trading in this new commodity. (Carbon) http://www.aph.gov.au/Parliamentary_Business/Committees/House_of_Representatives_committees?url=environ/greenhse/gasrpt/finalrpt.pdf

The amount of carbon dioxide in the air was roughly 366ppm. As of 2023 it is 423ppm, but check here for daily measures. 

The context was that the Australian government had extorted an extremely sweet deal at the Kyoto conference in December 1997. This was the starting gun for the idea of emissions trading schemes in different countries which would ultimately linked up and make bankers and traders rich while, as a sideline, “saving the world on the cheap.” 

The Australian government had signed the Kyoto protocol document in April of 1998. The leak about ratification only happening if the Americans ratified will still a month away, so at this precise moment the idea of Australia having its own emissions trading scheme that then linked up to other emissions trading schemes was not the fantasy that we would look on it as with 25 years of bruising experience.

What I think we can learn from this is that standing committees/senate inquiries house of reps stuff, it’s all nice busy work or undergrowth for policy wonks where they can can justify their money they are on, make professional connections and try to create a common sense agreement around whatever their particular pet solution is. Policy subsystems, policy constituencies etc etc.

What happened next is a proposal for an emissions trading scheme for Australia went to John Howard’s cabinet in the year 2000 killed off by Nick Minchin from South Australia the Sydney’s future exchange never got off the drawing board.

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.

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Australia Carbon Pricing

 June 27, 1998 – we’ll trade our way outa trouble (not)

Twenty five years ago, on this day, June 27, 1998, the Australian state broadcaster, Radio National, broadcast a programme about the joys of then-almost-fashionable Emissions Trading…

1998  Radio National Earthbeat on Emissions Trading

Australian Broadcasting Corporation. Radio National (Organisation)

Michael Walsh (Guest)

Ian Causley (Guest)

Hugh Saddler (Guest)

Peter Graham (Guest)

Anna Reynolds (Guest)

Alexandra de Blas (Reporter)

Alexandra de Blas (Presenter)

http://www.abc.net.au/radionational/programs/earthbeat/greenhouse-emissions-trading/3647076

The amount of carbon dioxide in the air was roughly 369ppm. As of 2023 it is 423ppm, but check here for daily measures. 

The context was that the Liberal party was wanting to seem like it cared about climate change at some level. There was after all an election coming and so it had started making some noises about emissions trading and the New South Wales premier Bob Carr was making a lot of noises.

What I think we can learn from this

Emissions trading is popular with diverse social actors because it allows, effectively, the appearance of doing something when you are not. And some people can get seriously rich.

What happened next

An Emissions Trading Scheme was presented to Cabinet in the year 2000 and killed off by Nick Minchin. Emissions trading never really got off the ground, and has been beset by enormous and predictable difficulties. Has it actually reduced any emissions anywhere? That’s a good question.

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.

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Australia Carbon Pricing

May 21, 1998 – “Emissions Trading: Harnessing the Power of the Market”

Twenty five years ago, on this day, May 21, 1998, Australian politicians danced around the idea of “emissions trading.

Ladies and gentlemen.

I am pleased to be here with you today to share with you my assessment of the opportunities and far-reaching role that international emissions trading will play in the successful implementation of the Kyoto Protocol. International emissions trading provides the means of harnessing the power of the market to provide cost effective solutions to emission abatement.

Emissions Trading: Harnessing the Power of the Market

Address by the Hon Alexander Downer, MP, Minister for Foreign Affairs, to the ABARE International Conference on Greenhouse Gas Emission Trading, Sydney, 21 May 1998

http://foreignminister.gov.au/speeches/1998/abare21may98.html

The amount of carbon dioxide in the air was roughly 369.5ppm. As of 2023 it is 420ppm, but check here for daily measures. 

The context was that by this stage the idea of putting a price on carbon dioxide – especially one way you could start trading trees, as New South Wales premier Bob Carr was keen to do – was the kind of market environmentalism that “rational” “capital L”  liberals might go for. It was therefore relatively painless for Alexander Downer to give a hedged speech in his capacity as Foreign Affairs Minister.

What I think we can learn from this

Politicians like this stuff because it makes it look like they’re doing something when they absolutely are not.

What happened next

Well, an emissions trading scheme was put in front of the cabinet in 2000 and killed off by Senator Nick Minchin.. And then in 2003 the scheme got killed off by Howard. Meanwhile, the Sydney Futures Trading idea had been aborted by 1999.

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.

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Carbon Pricing Economics of mitigation United States of America

May 19, 1993 – President Clinton begins to lose the BTU battle…

Thirty years ago, on this day, May 19, 1993

Senator David Boren comes out against BTU tax, after Burson Marstellar astroturf campaign (see Agrawala and Andressen, 1999: 470)

The amount of carbon dioxide in the air was roughly xxxppm. As of 2023 it is 420ppm, but check here for daily measures. 

The context was

There had been enormous – and ultimately successful – local lobbying efforts. Boren had been picked off, in a kind of Serengeti strategy thing, but in the political sphere rather than the scientific. And this really spells the end for Clinton’s BTU. 

What I think we can learn from this is that the opponents of climate action, smart, determined, strategic and well funded. These characteristics do not necessarily apply to the proponents of action, unfortunately. 

What happened next

Clinton had to kill the BTU energy tax. And that was basically it for Clinton and domestic climate action (imo). It also meant that the opponents of action really had good proof of concept, and presumably, the Australians were looking at this and saying, “that’s how it’s done.”

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.

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Australia Carbon Pricing

 April 28, 1993 – Australia to monitor carbon tax experience

Thirty years ago, on this day, April 28, 1993, after returning from Washington, Australia’s environment minister changed her tune.

 Australia would watch closely the international trend towards an energy tax and the effect such a tax would have on curbing greenhouse gases, the Minister for Environment, Ros Kelly, said yesterday.

AAP, 1993. Aust to monitor energy-tax experience: Kelly. Canberra Times, 29 April, p. 15 

The amount of carbon dioxide in the air was roughly 359.4ppm. As of 2023 it is 420ppm, but check here for daily measures. 

The context was that Ros Kelly had just come back from a visit to the United States where President Clinton had given her a shout out at a press conference where he talked about his BTU tax proposal, which he had launched in February of that year.  Kelly had in 1992, been explicit in saying a carbon tax was off the table for Australia (see here). 

So this represented a bit of a turnaround, and will have alerted anti-climate people in the BCA and AMIC  to the need to get their ducks in a row ahead of another battle.  It will have been another reason to set up the “Industry Greenhouse Network”…. 

What I think we can learn from this is that issues or solutions that get dumped can be brought back because of the variety of political and personal factors. And this will be noticed because anti climate action activists remain vigilant, of course; that’s their job.

What happened next

Kelly didn’t last much longer as Environment Minister because of a scandal. Her replacement, Graham Richardson didn’t last. Because well, Graham Richardson. But then the next one, John Faulkner expressed interest in bringing in a carbon price or at least a basic carbon tax. And then the battle was on again 

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.

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Australia Carbon Pricing United States of America

April 22, 1993 – Clinton’s announcement used by anti-carbon pricing Aussies

Thirty years ago, on this day, April 22, 1993, Clinton’s announcement was used in the low-intensity conflict over carbon pricing…

A PLEDGE by the US President, Mr Clinton, to cut emissions of greenhouse gases will raise the pressure on Australia to take tougher action, according to a senior Australian bureaucrat and Australian business and environment groups.

A first assistant secretary of the Department of Primary Industries and Energy, Mr Peter Core, told business lobbyists yesterday at a private seminar organised by the Centre for Corporate Public Affairs, that Mr Clinton’s announcement would put renewed pressure on Australia’s stance on the issue.

And an assistant director of the Business Council of Australia, Ms Chris Burnup, said yesterday the move would dramatically change the complexion of talks on global climate change.

Garran, R. 1993. Clinton pledge cuts new key to the greenhouse. The Australian Financial Review, 23 April, p.9.

The amount of carbon dioxide in the air was roughly 359.4ppm. As of 2023 it is 420ppm, but check here for daily measures. 

The context was

The business lobby and its proxies (including plenty in the Labor Party) had defeated the first attempt at a carbon tax during 1990-1991.  They knew it would be back soon-ish though.  This briefing to an AFR hack may have been an effort to smoke out proponents, force them to show their colours so they could be crushed. Alternatively, it might have been from a proponent, hoping to slowly raise the pressure, build a new normal…see the post from a few days ago about Keating…

What I think we can learn from this

You have to read newspaper articles thinking “which lying liar fed this to the hack, and what is the hack trying to push?” It’s exhausting to do this, and most of us most of the time just pretend that if it is in the paper (of our choice) it is ‘true.’ That’s nonsense, but there are rarely any personal consequences, so as an energy-saving habit, it persists.

What happened next

There was indeed another push for a carbon tax. It was defeated.  Australia didn’t get carbon pricing until 2012, and then only for a couple of years. To be clear – carbon pricing is one very small part of what you would do if you were trying to respond to the threats of climate change.  But it’s a brown M&M when it comes to how serious your government is..

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