Category: Carbon Pricing

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Australia Carbon Pricing

August 9, 2001 – OECD calls on Australia to introduce a carbon tax. Told to… go away…

On this day, August 9, 2001, the OECD called on Australia to introduce a carbon tax. Was told to piss off.

CANBERRA, Aug 9 AAP – An OECD call for Australia to introduce environment taxes was today ruled out by the government and opposition despite support from rural backbenchers.

The Organisation for Economic Cooperation and Development’s latest report showed that Australia’s economy was faring well, and that a carbon tax would be a cost-effective way to benefit the environment.

“Setting up a trading scheme or a carbon tax of broad sectoral coverage is the most cost-effective way to achieve emissions reductions,” the OECD report said.

Environment Minister Robert Hill branded the call Eurocentric, saying the government was instead focused on building economic growth with a low-tax environment.

McSweeny, L. 2001. Fed – Major parties reject OECD call for environment tax. Australian Associated Press, 10 August

Hill’s “Eurocentric” line would later be deployed by his boss John Howard, when Nick “Stern Review” Stern was dismissed for being (checks notes) English.


The depths of banality and venality. It is staggering, isn’t it?

Fun fact – Matthias Cormann, who helped stop the Liberal Party do anything even remotely un-cray on climate in the 2010s is now head of the OECD. Oh how we laughed.

On this day atmospheric co2 was 369.78 ppm. Now it is 421ish- but see here for the latest.

Why this matters. 

A carbon price was not a communist conspiracy. It really wasn’t. And it would have, with other measures, made some difference, delayed the apocalypse by a few days/weeks/months. Oh well…

What happened next?

The Howard government kept on shitting on everyone’s future. The Rudd government said it would do better. Didn’t. The Gillard government got the climate legislation through, but in the process gave the Murdoch press and the wrecking ball known as Tony Abbott all the ammo they needed (but to be clear, no matter WHAT Gillard did, they were going to try to destroy her).

Categories
Australia Carbon Pricing

Feb 23, 2009 Penny Wong flubs the CSPR… The CPSR..  THE PCRS. Oh, hell. #auspol

On the day 23rd of February 2009, Australia’s climate minister, Senator Penny Wong – full disclosure, I knew her when we were both at Adelaide University – confused the policy that she was advocating the carbon pollution reduction scheme.

“Under pressure from the mounting criticisms about how the CPRS cancels out the benefits from individual emissions reductions, Wong responded on the ABC’s 7.30 Report on February 23 that individual reductions will allow the government to increase carbon targets in subsequent years. This prompted an incredulous response from Andrew Macintosh, associate director of the Australian National University Centre for Climate Law and Policy. “Either Wong doesn’t understand her own scheme or she is deliberately lying”, he wrote on Crikey.com.au on February 24.”

The context is this. The Howard Government, 1996 to 2007 had successfully resisted all calls to meaningful action and climate change and even meaningless stuff like an ETS, even from within its own cabinet. Kevin Rudd used this uselessness on climate change – or rather, this defence of fossil fuel interests, which is not useless to fossil fuel interests – as part of his branding, to become prime minister. And in 2008, a torturous, confused, complex, complicated and ultimately corrupted process to create a carbon pollution reduction scheme had unfolded. 2009 was to be the year when the legislation was pushed through and what Wong was doing was trying to sell it. But the CPRS was insanely complex and hard to explain. And I for one, taken with the idea of a very simple carbon tax which might be less “efficient”, but more effective and hard to game was the way forward. It was not to be… 

Why this matters 

Because when politicians make complicated proposals, they lose the public and the public thinks this is going to be unfair, there are going to be loopholes, the rich will get their way and the public is usually right. “And the policies are planned, which we won’t understand” as TV Smith sings…

What happened next 

The CPRS failed to get through first time in the middle of the year, as was expected, and then didn’t get through again in November, December. And therein lies a story….

Categories
Australia Carbon Pricing Economics of mitigation Politics

Jan 21 (2010) – The flub that sank a thousand policies #auspol

On this day, in 2010, – yes, another Australia one, but it “matters” –  Australian  Prime Minister Kevin Rudd, was caught out having to admit that his proposed “carbon pollution reduction scheme” was dead and that he was kicking the whole climate issue into the long legislative grass.

The CPRS was an insanely complex piece of legislation. Economist Ross Garnaut said of it in December 2008 that  “”Never in the history of Australian public finance has so much been given without public policy purpose, by so many, to so few,”“ – and that’s before the further watering down. Green groups had called it a give-away to the fossil fuel lobby, and the Green Party had refused to support it in parliament in late November 2009, meaning that it failed to become law.

Rudd was in Norwood, a leafy, and relatively affluent suburb of a large country town called Adelaide in South Australia.

As leader of the Australian Labor Party, Rudd had used climate change as a battering ram to differentiate himself from Prime Minister John Howard, and been elected to do something about the issue. As Prime Minister from late 2007, he had been playing chicken with the Liberal National Party, especially its leader Malcolm Turnbull, and had initially rejoiced when Turnbull was replaced by the dark horse (and subsequent wrecking ball) Tony Abbott. 

But the climate conference in December 2009 in Copenhagen didn’t go well. And in the aftermath, Rudd ignored the urging of senior Labour Party members to call a snap election on the question of climate policy, and then didn’t even come up with a plan B. So he was caught on the hop. We know all of this because the period is intensely reported in the battle of the memoirs. And I’d alert you to Philip Chubb’s Power Failure. Julia Gillard’s My Story, Paul Kelly’s Triumph and Demise. 


What happened next?  Australia entered a period of extreme volatility about climate change that  has brought down successive prime ministers and left the country with enormous policy failures around climate, energy, renewables, you name it. If Rudd had had the courage of his convictions, or even just taken on the Green Party idea of a temporary carbon tax while an Emissions Trading Scheme was devised/an election held, none of this needed to have happened. And here we are. 

Why this matters? Because I think you can make an argument that Australia’s confusion and cynicism about climate change and politics is directly related to Rudd’s failure to pursue the climate agenda to the ballot box again, if needs be.,

Rudd had enjoyed going on and on about climate change as “the great moral challenge of our generation” (which it is). People believed him. Rudd’s popularity remained stratospheric. Then, when people decided that Rudd had been using climate as just another “positioning issue,” they felt cheated, betrayed, taken for fools. Rudd’s personal approval ratings took a massive hit. Climate was the only issue, but it certainly was the straw that broke the camel’s back. 

So if you, as a political leader, are going to use climate change as an issue, you better bring your A game and if your A game doesn’t work, you better switch to your B game, which is as good as your A game. And if you don’t, you will cause havoc. And it is now harder than in Rudd’s day, because everyone is cynical, everyone is kinda terrified, whether they can articulate it to themselves or not.