[Greens-Media] Scrap free permits to big polluters: Greens

[Hollo, Tim (Sen C. Milne)]

Scrap free permits to big polluters: Greens

Canberra, Monday 20 October 2008

The Rudd Government must immediately abandon plans to reward big
polluters with free emissions permits, Australian Greens climate change
spokesperson, Senator Christine Milne, said today.

Today's Innovest / ACF report brings home the European experience in
stark Australian dollar terms: giving free permits to polluters will
deliver them a multi-billion dollar windfall gain that could undermine
the economic, social and environmental integrity of the whole scheme.

Senator Milne said "The Greens have always argued that handing out free
permits to the biggest polluters would continue to feed big business
greed at the expense of ordinary Australians. This report confirms that
in stark terms.

"Why should ordinary Australians bear the burden of increased costs when
those who have caused this problem are getting windfall gains?

"The Government should immediately commit to auctioning 100% of
emissions permits. This would ensure that big polluters take their
obligations to reduce emissions seriously, and it would also deliver the
Government the cash it needs to invest in the renewable energy and
energy efficiency solutions that will drive an equitable outcome.

"Professor Garnaut's strong recommendation that all permits should be
auctioned was the key lesson he learnt on his first trip to Europe after
being commissioned for his recent report. His clear conclusion is that
the free allocation of permits would lead not only to greater
transaction costs but also to political interference and heavy lobbying.

"The fact that this warning is now coming true, as every possible
polluter cries out for special treatment, must have fed the despair that
filled the Professor's final report.

"As Professor Garnaut argued at the weekend, a well-designed response to
climate change is an excellent path out of the current economic
situation, delivering the economy a shot in the arm by boosting
efficiencies and creating jobs.

"It is obvious that a badly designed climate response will only make
both matters worse. And it is equally obvious that the Green Paper is a
badly designed response.

"Now is the perfect time for Prime Minister Rudd to tell the big
polluters that times have changed and they will be expected to deliver
emissions reductions if they want support.

"Free permits are the wrong way to support trade exposed industries. The
vast bulk of revenue must fund emissions reduction outcomes in homes,
businesses and industry across the country, reducing costs by reducing
emissions."

Contact: Tim Hollo on 0437 587 562

Tim Hollo
Media Adviser
Senator Christine Milne
ph: (02) 6277 3588
mob: 0437 587 562

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