On this day, September 5 1990, the new-ish Australian Environment Minister, Ros Kelly, was trying to finish the work that a male colleague had started with endless self-promotion but not a lot of guile (this is a pattern that will recur, 20 years later). Here are two newspaper accounts
Targets to reduce greenhouse gases would strengthen the Australian economy, not cripple it, according to the Minister for the Environment, Ms Kelly.
Speaking to a Metal Trades Industry Association seminar, Ms Kelly made a preliminary sortie in the battle she will fight with her Cabinet colleagues next Monday to try to persuade them to set targets for reductions in greenhouse gas emissions. Ms Kelly said a report for her department by Deni Greene Consulting Services showed that a 20 per cent reduction in greenhouse emissions by 2005 is not only possible, it is pretty easy to obtain”.
Industry groups have been lobbying the Government hard in recent days against setting a target to reduce emissions, which they argue could dramatically increase costs.
Garran, R. 1990. Kelly sees big savings in cutting greenhouse gases. Australian Financial Review, 6 September, p. 5.
and
“In a speech yesterday (5th), Mrs Kelly called again for immediate action. She stressed the IPCC findings and said that “the sensible course of action is to do what we can, as soon as we can”.
A 20 per cent cut had been proved “not only possible (but) easy to obtain,” she said. “
Seccombe, M. 1990. Polluters put on the back-burner. Sydney Morning Herald, 6 September, p.1
On this day the PPM was 351.38. Now it is 421ish- but see here for the latest.
Why this matters.
There was a time when – if you were optimistic (and perhaps naive?) you could imagine Federal politicians in Australia actually taking action that would have added up to a semi-adequate response to climate change. It was a brief time, one easily romanticised, but it did exist.
What happened next?
None of this came to pass. The fight back from the fossil lobby was supremely effective. Companies in Australia dug up and burnt/sold insane (I mean that literally) quantities of fossil fuels, with active and very enthusiastic support of the political classes and the bureaucrats. And here we are.
On this day August 30 1990, the IPCC’s meeting in Sundsvall, Sweden featured attempts by the USA and Australia to water down policy findings.
The IPCC had been set up in 1988, in part to stop climate scientists being too independent and making a repeat of what happened over ozone less likely (The Reagan Administration had felt ‘bounced’). It had delivered its first report ahead of the Second World Climate Conference (which had been pushed back a few months so that it could also serve as the starting point for international negotiations for the impending climate treaty).
Some nations (but not – at this point – Australia) had said, with varying degrees of sincerity/seriousness, that they would try to cut their emissions by 20 per cent by 2005. This target had been agreed at a conference in June 1988, and so was known as the “Toronto Target” (Some NGOs at Toronto had been pitching even higher, btw).
The Australian Federal Labor Government was wrestling over this – The previous Environment Minister, Graham Richardson, had lost a Cabinet battle over it in May 1989. HIs successor, Roz Kelly, was still trying to get it through, in the face of opposition – e..g. A “Labor Party’s caucus primary industries and resources committee report, [chaired by] Brian Courtice (Qld). The report said the Government had been conned by green groups and would risk future electoral success if it continued to “appease” them.”
So, anyway, against that backdrop, this is entertaining –
“Mrs Kelly said reports last week that the Australian delegation to the International Panel on Climate Change in Sweden [IPCC 4th Session SUNDSVALL 27-30 August 1990] had supported moves by the United States to water down its policy findings were being investigated. The delegates had been told before leaving for the meeting to support the Toronto targets.”
My Conversation piece about the Sundsvall meeting here.
[The level of carbon dioxide in the atmosphere was 353 ppm. Now it is 421ish- but see here for the latest.]
Why this matters.
There are no “pure” processes from which we fall. Everything is messy, contested. Organisations (states, corporations etc) defend their interests, try to shape narratives.
What happened next?
A weak weak treaty was agreed in 1992.
Since 1990, human emissions have gone up by about 67% per cent. The age of consequences is here for some (ironically mostly those least to blame) and is imminent for everyone.
On this day, August 29, 1990, the Australian mining and forestry industries – so long accustomed to freezing the greenies out of policymaking forums, had a tantrum.
“The mining and forestry industries last night threatened to pull out of the Government’s sustainable development consultations unless the Prime Minister, Mr Hawke, repudiated highly critical comments by the Minister for the Environment, Mrs Kelly.
In a speech to the Fabian Society last night, Mrs Kelly attacked the Australian Mining Industry Council and the National Association of Forest Industries for their views on sustainable development.
Mrs Kelly said AMIC’s idea of a sustainable industry was “one in which miners can mine where they like, for however long they want. It is about, for them, sustaining profits and increasing access to all parts of Australia they feel could be minerally profitable even if it is of environmental or cultural significance”.”
Garran, R. 1990. Mining, forestry groups threaten to leave talks. Australian Financial Review, 30 August.
On this day the ppm was 353 ppm. Now it is 420ish- but see here for the latest.
Why this matters.
Sometimes, for reasons to do with public pressure, the normally closed shop of government (politicians and civil servants) and industry is prised open, briefly… It doesn’t last, and it rarely ends well…
What happened next?
The Ecologically Sustainable Development Process ended up happening, and some decent suggestions got put forward by various green groups, especially folks from the Australian Conservation Foundation. And it all got filed in the “circular file” thanks to the next Prime Minister, Paul Keating, and Federal bureaucrats (see earlier post this month!). Turns out the state is not a wise neutral arbiter. Who knew…
A friend and supporter of this project has asked me to write about “carbon credits,” which are right now a ‘hot topic’ (sorry) in Australian climate politics.
What follows is not a comprehensive history, and only partly references posts that have already gone up (more are lurking in the near future). The second half is given over more to – well, why the big focus on ‘carbon credits’ – what is allowed and disallowed by that focus?
Comments very welcome, but not about the existence or severity of climate change – the time between now and the Actual Fricking Apocalypse (AFA) is short, and I don’t intend to waste even a minute of it on trolls, bots and poster-children for the Dunning-Kruger effect.
Australia and economic instruments around climate change.
In 1973 (not 1971 as the Tweet says!) Treasury, responding to concerns about the “diseconomies” of economic growth, released a report.
On this day 8 June, 1971, the Australian Treasury released a report "Economic Growth: Is it Worth Having?" On page 11 and 12, it considers… “the greenhouse effect” and the build-up of carbon dioxide in the atmosphere.https://t.co/8SiRbmAEVa 🧵 1/6 pic.twitter.com/8Q3Rbt3Doi
— All Our Yesterdays (@our_yesterdays) June 7, 2022
It basically wasn’t that bothered. And with hyper-inflation and all sorts of other economic mayhem, the Whitlam Government seems not to have paid attention.
So, let’s skip forward to the coming of the “Greenhouse Effect” in the late 80s – and we should always remember that thanks in part to Barry Jones (Hawke’s Science Minister) Australians were well-informed (Commission for the Future, Phillip Adams, The Greenhouse Project, Greenhouse 87, Greenhouse 88, Stephen Schneider, Barrie Pittock, Graeme Pearman etc).
In 1988, Barry Jones pointed out that a price on carbon dioxide was a reasonable economic measure. Other people were saying the same – this is uncontroversial – Pigou etc etc – you want to discourage something, you make it more expensive. “The market” then finds a way. So the story goes.
But in Australia, on climate, until 1995, the major focus was on a carbon tax rather than emissions trading. And it had advocates, beyond the Australian Conservation Foundation. And they pushed it within the “Environmentally Sustainable Development” process of 1990-91. And they lost. Or rather, the determined efforts of a growing “greenhouse mafia” (to shoot Guy Pearse’s useful formulation back before the existence of the AIGN) were successful in defeating a carbon tax. Ros Kelly, Hawke and then Keating’s Environment Minister, explicitly ruled out any price on carbon, both before and AT the Rio Earth Summit-
And was defeated, by an even more determined and sophisticated resistance.
And after this, for various reasons (mostly to do with what the Americans wanted/were willing to countenance) taxes fell away (Clinton, don’t forget, had been defeated on his BTU tax in 1994) and “emissions trading became the flavour of the month. You can see it in various Australian Treasury documents, in conferences, speeches etc.
The basic idea is you create a “market” and so its magic then… reduces emissions. Meanwhile, certifiers, bankers, lawyers all get rich.
There were two big efforts under Howard to get a national Emissions Trading Scheme going. Both were defeated – the 2000 one by Nick Minchin, the 2003 one by Howard himself. Check out Guy Pearse’s High and Dry for gory details, and also Marian Wilkinson’s The Carbon Club. And there is the work of Clive Hamilton too (esp Scorcher).
Advocates of emissions trading soldiered on. One key entrepreneur was Bob Carr (there are blog posts on this site about him coming up). At a time when all states had Labor governments, they were co-ordinating on a bottom-up emissions trading scheme. Howard was not happy.
Then, when climate change “took off” in the second half of 2006 in Australia, Kevin “I’m from Queensland, I’m here to help” Rudd latched onto climate as a wedge issue.
BUT he had to go carefully, not to scare Queensland voters.
some sort of carbon trading (he put Ross Garnaut in charge of that, while in opposition).
Howard tried to come back against this, saying he WOULD now introduce a carbon trading scheme if re-elected. But too little too late etc etc
What do we learn here? That carbon trading, carbon credits etc, are regarded as “common sense” (read Tony Gramsci on this!) as normal, reasonable and the best respectable position. Despite zero evidence that they would actually “work” at reducing emissions.
I don’t intend to go through the insane gory details of the period 2007 to 2012 (and onwards) – you have not bought me enough Cooper’s for that. But I will say this.
In early 2010, after Rudd’s “Carbon Pollution Reduction Scheme” had failed twice, and while Rudd was being too spineless to call a double dissolution election on the “great moral challenge of our generation” the Greens proposed an interim solution, a … carbon tax. Labor ignored the proposal (hi Penny!).
So, let’s skip over the last 10 years of “carbon pricing.” Except this, from the Turnbull-Frydenberg era, may amuse…
By getting into carbon credits, you can give the appearance of wanting to do something/doing something, and getting everyone focussed on a very small/technical issue which few understand. Perfect! It makes it virtually impossible for civil society actors, with their pesky legitimacy and demands for morality and far-sightedness and courageous decisions, to be involved.
It means you don’t have to piss off those very rich people who are funding you.
That’s the political purpose/attractiveness of carbon credits, over and above any actual “efficiency”.
Two final things. What I am saying is not new, or profound. Check out
Compare it with a so-called “inefficient” tax. Which is easier to collect, offers far fewer opportunities for evasion, gaming, arbitrage, get-rich-quick-scamming. Funny how the complex stuff always wins out, eh?
What is to be done?
Oh, god, I have written about that so much. Try this.
On this day, 12 June, 1992 (thirty years ago), the Australian Environment Minister ruled out a carbon tax. Again.
To quote a newspaper account of what was going on at the Rio Earth Summit –
“Economic instruments could also be used to reduce greenhouse emissions. Mrs Kelly said she had had discussions yesterday with Canada’s environment minister on the issue.
Australia’s options were limited, however, because the Government had declared its opposition to a carbon tax. Asked why the Government opposed a carbon tax, Mrs Kelly said it believed such a tax could introduce real social distortions because of Australia’s big distances.
“And it would obviously disadvantage rural communities, and those who could not afford to pay higher (fuel) prices.
The Australian community is not yet ready for a carbon tax. Even the European Community has passed a motion stating that it would not introduce a carbon tax until the US did so.
“It’s a question of who starts the ball rolling, Mrs Kelly said. “We won’t.””
O’Neill, G. 1992. Kelly Wants Action Over CO2 Emissions. The Age, 13 June, p.15.
One of the things you would have done – one of the first, but not the last or the biggest – if you gave a shit about future generations – was to put a tax on carbon dioxide. Not a huge one, and what you did with the money you got would have mattered (investing in renewables research, doing energy efficiency. Not rocket science).
We didn’t. And here we are.
What happened next?
Australia ratified the UNFCCC later that year, and created a meaningless “National Greenhouse Response Strategy” that was, um, none of those things. And then kept on as it had – building energy inefficient housing, building new coal-fired power stations etc etc.
On this day, sixth of April 2006, the “Australian Business Roundtable on Climate Change” released its first and I think only report, “The business case for early action,” a 25 page extravaganza of nice pictures and nice rhetoric..
The ABRCC was made up of insurance, banking and service sector outfits. (The manufacturing and extractive industries were conspicuously absent).
They were trying to combat the impression that John Howard, Prime Minister of Australia since March 1996, had been able to give of business was against climate action because it would destroy the economy.
It was not the first attempt to create a business pressure around climate action; WWF had been trying in 2003 or so. And of course, there were open letters and surveys and all sorts of other efforts before 2006.
Why it matters
Well, it doesn’t, but it reminds us that service sector (esp banking and insurance types, and sometimes “gas rather than coal” outfits are keen to seek out business opportunities, and to undermine the pro-coal/anti-carbon trading outfits. And that one of the ways they do that is via these sorts of gaudy one-offs…
What happened next
In retrospect, this report can be seen as one of the opening salvo softening up for what would happen later that year, which is one of these periodic explosions of concern about climate change that swept Kevin Rudd bless his cotton socks to power.
The ABCC to my knowledge to do much more. It had served its purpose. And once these loose coalitions have said their piece, it’s hard and “not worth it” to most of the members to start saying what they DON’T agree with – too much cost in co-ordinating, negotiating, reputation-managing for very little return. There are other ways to make their point, so these outfits tend to fold…
Fun fact, the guy in charge of Westpac (big bank, and one of the signatories) at the time, David Morgan, is married to Ros Kelly, who was the third Australian was the the Australian Minister for the Environment back in 1990 when Australia made its first empty promise on emissions reductions. The Australian business elite have known about this issue for a very very long time.
