03/01/2017

Cabinet Papers 1992-93: Reluctant States Held Back Policy Greening

The AustralianGraham Lloyd

Deep divisions between the state and federal governments over ­climate change policy can be traced back to the earliest negoti­ations on the issue more than a quarter of a century ago.
Keating government cabinet records show Canberra's biggest challenge on greenhouse gas actions came from reluctant state and territory leaders.
In contrast to today, when states are outbidding the federal government on renewable energy targets and demanding tougher action, the call in 1992 was for limited action of "no regrets" with a focus on the economy.
In May 1992, state leaders ­argued the federal government was "seeking to settle policy ­positions within too tight a time frame".
By that October, state and territory officials had supported the "general no-regrets framework and phased approach".
But some were "cautious about the question of incorporating ­externalities in energy pricing ­because of the current policies aimed at reducing energy prices for consumers".
The international negotiations on climate change action that eventually led to Australia signing the Kyoto Protocol coincided with a struggle inside the Keating cabinet on environment policy as the government sought to reposition itself from the Hawke years.
Keating wanted a more muscular, business focus but was compelled to lead Australia's response to building international negotiations on climate change.

Keating archives 1992-93
The 1992 cabinet records document a year-long process to bring reluctant state governments on side. State and territory leaders made it clear they were "not strongly committed" to either ecologically sustainable development or greenhouse reduction strategies, and resented the pace at which the federal government sought to settle policy positions.
Finally, cabinet endorsed support for the UN Framework Convention on ­Climate Change, in particular by assisting developing countries in the Asia-Pacific region to develop capacities for adaptation — with the caveat of no commitment to binding targets before other developed nations.
Ministers agreed in December 1992 that "our capacity to continue to protect Australia's economic and trade interests" remained the priority.
Analysis of the cabinet papers shows deep divisions about the balance between environment and economic development.
As treasurer, Keating was central to the group of finance and ­resource ministers, whose dissatisfaction with the "green" compromises tolerated or favoured by Hawke fed into leadership ­ructions.
Keating's decision not to join 108 heads of state or government at the UN Conference on Environment and Development in June 1992 is often taken as indicative of disengagement, but his cabinet ultimately approved arrange­ments for ­ecologically sus­t­ainable development, including a greenhouse gas ­response.

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