21/08/2021

(The Conversation) Australia Is At Risk Of Taking The Wrong Tack At The Glasgow Climate Talks, And Slamming China Is Only Part Of It

The Conversation

Joe Logan/Shutterstock

Author
 is Visiting Fellow, Crawford School of Public Policy, Australian National University.
Buried within the prime minister’s response to the latest report from the Intergovernmental Panel on Climate Change is just about everything we’re at risk of getting wrong at the Glasgow climate talks in October.

After slamming China — whose emissions per person are half of Australia’s — for not doing more to cut emissions, Scott Morrison said the Glasgow talks were the “biggest multilateral global negotiation the world has ever known”.

If he treats the talks as just another (big) negotiation, we’re in trouble.

The way the Department of Foreign Affairs and Trade usually treats negotiations is hold something back, hold out the prospect of “giving it up,” and then only make the concession if the other side gives something in return. Even if holding back damages Australia.

Cars are a case in point. From an economic point of view, there is no reason whatsoever to continue to impose tariffs (special taxes) on the import of cars — none, not even in the eyes of those who support the use of tariffs to protect Australian jobs. Australia no longer makes cars.

Yet the tariff remains, at 5%, making it perhaps A$1 billion harder than it should be for Australians to buy new cars (although nowhere near as hard as it was in the days when the tariff was 57.5%).

The tariff seems to be in place largely to give the Department of Foreign Affairs and Trade something to negotiate away in trade agreements: for use as what the Productivity Commission calls “negotiating coin”.

Australia removed tariffs on cars from Korea but kept them in place more broadly. Tricky Shark/Shutterstock
Here’s how it worked in the 2014 Australia-Korea Free Trade Agreement. Australia agreed to remove the remaining 5% tariff on Korean cars, “with consumers and businesses to benefit from downward pressure on import prices”.

But Australia didn’t remove the tariff on car imports altogether, which would have given us a much bigger benefit but denied the department negotiating coin.

The next year the department did it again, agreeing to give up the tariff on imported Japanese cars in the Japan-Australia Economic Partnership Agreement (but not on other cars) so Australians could “benefit from lower prices and/or greater availability of Japanese products”.

Two years later, it did it again, with cars from China.

When the UK and European agreements are negotiated, it’ll do it there too.

Australia holds back reforms

Eventually Australians will get what they are entitled to. But the point is that rather than advancing the cause of free trade, the department has held back, treating a win for the other side as a loss for us, when it wasn’t.

The Centre for International Economics believes the much bigger earlier set of tariff cuts lifted the living standard of the average Australian family by A$8,448.

Had our trade negotiators been in charge, we would still be waiting. Instead the Hawke and then the Keating governments pushed through unilateral reductions, asking for nothing in return.

As former Trade Minister Craig Emerson put it, this gave Australia “credibility in international trade negotiations way beyond the relative size of our economy”.

Does that sound like the sort of thing Australia might need at Glasgow, to have enough credibility to urge even bigger emitters to deliver the kind of cuts on which our futures and future temperatures depend?

It won’t work with China

The prime minister is right to say that China is the world’s biggest greenhouse gas emitter, even though its emissions per person are low. Its high population means it accounts for 28% of all the greenhouse gases pumped out each year. The next biggest emitter, the United States, accounts for 15%

But China’s status is new. Until 2006 it pumped out less per year than the United States. Because the US has had mega-factories and heating and so on for so much longer, it is responsible for by far the biggest chunk of the greenhouse gasses already in the atmosphere: 25%, followed by the European Union with 22%.


LARGE IMAGE


China might reasonably feel that countries like the US that have done the most to create the problem should do the most to fix it.

Like Australia, the US pumps out twice as much per person as China and has much more room to cut back.

On the bright side, China knows that being big means it is in a position to make a difference to global emissions in a way that other countries cannot on their own. And that’s a position that can benefit its citizens.

China’s latest five-year plan, adopted in March, commits it to cut its “carbon intensity” (emissions per unit of GDP) by 18%. If it beats that five-year target by just a bit (and it has beaten its previous five-year targets) its emissions will turn down from 2025.

It is aiming for net-zero emissions by 2060.

Australia needs China’s help

The Intergovernmental Panel on Climate Change finds that Australia is especially susceptible to global warming. We’re facing less rain in winter, longer heatwaves, drier rivers, more arid soil and worse droughts.

We are right to want China to do more, but the worst way to achieve it is to say “we won’t lift our ambition until you lift yours”.

Hardly ever a worthwhile strategy, it is particularly ineffective when we don’t have bargaining power.

The only power we’ve got is to set an example, unilaterally, as we did with tariffs. And to ramp up our ambition.

If Australia said it would do more, and didn’t quibble, it might just count for something.

It’s all we can do, and it’s the very best we can do.

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(AU ABC) Australia Widely Criticised Over Emission Reduction Targets Ahead Of COP26 Climate Talks

ABC NewsMichael Slezak | Melissa Clarke

Raging flames in a bushfire setting.
Fires are projected to get worse and more frequent due to global warming. (AAP: Dean Lewins, File photo)

This week has seen the UK, the US and others pile onto Australia's approach to climate change at a virtual conference on climate action.

The US President's deputy special envoy for climate change, Jonathan Pershing, told the Better Futures Forum on Thursday our current emissions reduction commitments were not enough.

"It would be really helpful to see Australia step forward with a more ambitious effort," Mr Pershing said. "I would submit that Australia could be much more aggressive."

Later in the day, the UK's Minister of State, Alok Sharma, who is president of the upcoming climate conference in Glasgow, called on Australia to do more.

"I urge Australia to step up with big, bold commitments ahead of COP26 in November," he said.

At the same conference earlier this week, former UN chief Ban Ki-moon said not taking more action risked Australia's international standing, and NSW Liberal environment minister Matt Kean said Australian climate politics needed to move beyond vested interests.

Australia is copping it from all sides. Why now?

Ahead of COP26 in Glasgow, the world wants tougher targets

In just over 70 days, the world is meeting in Glasgow for COP26, as the next round of UN climate talks are known.

At the meeting, countries are expected to announce new and more ambitious emissions reduction targets.

As Mr Pershing explained, the UK is leading the pack, with a pledge to cut emissions by 68 per cent by 2030. The EU has pledged a 55 per cent reduction and the US 52 per cent. 

The world needs to cut emissions roughly in half by 2030, and rich countries such as Australia are expected to lead the way.

But Australia has stuck with the same commitment it made in 2015 under Tony Abbott: 26-28 per cent below 2005 levels by 2030.

At the same time, all our major trading partners have committed to a net zero target, but Australia has so far resisted.

Ban Ki-moon put it bluntly: "Australia's current goal of a 26 to 28 per cent reduction on 2005 levels by 2030, and the absence of a national zero emissions target, is out of step with its states, its trading partners, and other comparable nations. It is insufficient to meet Australia's Paris Agreement commitments."

Former UN chief Ban Ki-moon speaks during a news conference.
Former UN chief Ban Ki-moon says Australia is out of step with its states and trading partners. (Reuters: Kim ngHo-Ji)

There are other things Australia can do, too

Many expect Australia will announce a net zero by 2050 target ahead of Glasgow.

But without stronger interim targets for 2030, that is unlikely to satisfy our global friends and neighbours.

COP26 will involve important discussions that go beyond emissions pledges, which could offer room for Australia to generate goodwill.

The IPCC report explained
Skinny cattle stand in a bare, dusty paddock with no grass, trees or any plantlife in sight.
Worse fires, longer droughts, and more severe floods — the projections from one of the world's most significant reports on climate change make for scary reading. Let's break down what it all means. Read more

How money will be mobilised to help the developing world mitigate and adapt to climate change is going to be an important discussion.

There was a target of mobilising $US100 billion ($139.5 billion) of global finance by 2020. How that's measured is a matter of some debate, but most agree the target has not been met.

Australia has a chequered history on the issue.

Under the Abbott government, Australia supported the Green Climate Fund, which seeks to raise finance to assist the developing world.

Australia even chaired it.

When Scott Morrison became Prime Minister, following Donald Trump's lead, he withdrew Australia from the fund, telling talkback radio he would not "tip money into that big climate fund".

Australia did stand by its commitment to provide climate finance, just through other channels.

IPCC report and Australia
Hot Aus
The latest IPCC report does not make for particularly uplifting reading. But if you are keen to delve further into the details, it does say quite a bit about Australia. Read more


Despite that, the move was condemned by some of our Pacific neighbours, and now the US has rejoined the fund, Australia is the only developed country not part of it.

Australia could probably win some goodwill by playing a constructive role in discussions around finance.

There are other options. Mr Pershing suggested Australia could help reduce its impact on emissions in other countries too by reducing its coal exports. And important negotiations will take place around adaptation targets and carbon markets as well.

What about Australia's 'technology, not taxes' approach?

Mr Morrison has been ardent in his promotion of "technology, not taxes" as a way of tackling climate change.

This is a reference to the Coalition's Technology Investment Roadmap, which guides $18 billion into five priority areas: hydrogen, carbon capture and storage, soil carbon, energy storage options and "low-carbon" steel and aluminium production.

The initiative does have international support, acknowledging technological breakthroughs in these areas could help both developed and developing countries alike lower their emissions in the future.

But it doesn't cut it as an emissions reduction target.

There is no guarantee these technological breakthroughs will happen at all, let alone quickly and successfully enough to make them competitive with existing methods of electricity generation and manufacturing in the next decade.

The US, UK and others want Australia to commit to targets and time frames. That way, if the technological breakthroughs don't happen, Australia will be compelled to find other ways to reduce emissions.

How does Labor's policy stack up?

With a federal election due sooner rather than later, it is possible the ALP, rather than the Coalition, could be dealing with climate change policy.

Labor leader Anthony Albanese has already committed to the net zero by 2050 target and Shadow Minister for Climate Change and Energy Chris Bowen has now acknowledged stronger interim targets are needed as well.

"Net zero emissions by 2050 is necessary, but not sufficient," he told the Better Futures Forum.
"A strong roadmap there is important, too."
But he declined to outline what that would involve, beyond the vague statement: "Australia should take a higher medium-term target to COP26 in November."

Labor's centrepiece energy policy is the $20 billion Rewire the Nation plan, which would see direct investment in the energy transmission network.

That investment is needed to accommodate the growth in wind, solar and hydro-power generation scattered around the countryside, not to mention the growth in rooftop solar feeding into what used to be a one-way grid.

Wind turbines with an orange sky.
Labor's Rewire The Nation plan would see direct investment in the energy transmission network, which is needed to accommodate growth in wind and solar energy. (Getty Images: Dean Mouhtaropoulos)

But, like the Coalition's Technology Investment Roadmap, it doesn't hold Australia to account to meet its share of emissions reduction in a feasible time frame to limit global warming.

So how will this play out?

In the next 70 days, we can expect to see the US, UK and other developed countries ratchet up the pressure on Australia.

Minister for Energy and Emissions Reduction Angus Taylor is standing firm on the government's approach for now.

"While ambition is important, outcomes are what ultimately matter," he said. 

"Over the last two years, our position against our 2030 target has improved by more than 639 million tonnes. That is equivalent to taking all of Australia’s 14.7 million cars off the road for 15 years."   

"Australia will continue to act in a practical, responsible way to be part of the global solution to reduce emissions without destroying jobs or regional communities."

The US and UK are currently coaxing and cajoling Australia, but expect more muscle flexing if Australia doesn't show that it is willing to come on board with stronger action.

The EU is forging ahead with a "Carbon Border Adjustment Mechanism", a bureaucratic name for a tariff on goods that are produced in nations that don't meet emissions reduction benchmarks.

Mr Biden has indicated the US intends to follow suit with a similar trade policy.

If Mr Morrison does not do enough to convince the world Australia is serious about contributing to global emissions cuts, as Ban Ki-moon warned, the nation's reputation and its trading strength could be badly damaged.

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(AU Canberra Times) Resources Industry Must Clean Up Its Act Or Get Out Of The Way

Canberra Times - Michael Allen

Fossil-fuel industries and their peak bodies are adept at painting themselves as partners on the way to climate solutions. Give me a break. Picture: Shutterstock

Author

Michael Allen is a former chief financial officer for listed resource companies and has worked in senior executive positions for companies including AngloGold, Anglo American and Resolute Mining.
He is treasurer of renewable-energy think tank Sustainable Energy Now.

As someone who has worked in the resources industry for three decades, much of it as a chief financial officer for major mining companies, it has been frustrating over the past week to see how the oil and gas industry has tried to position itself as part of the solution to lowering emissions and tackling climate change - rather than acknowledging it is a large part of the problem.

Let us be clear at the start: gas is a fossil fuel that's driving climate change.

Methane concentrations in the atmosphere are not only continuing to grow but accelerating. Experts like the Climate Council's Professor Will Steffen, the former executive director of the ANU's Climate Change Institute, largely attribute this increase to the gas industry's expansion.

This is what exacerbating climate change looks like - not solving it. The industry's mouthpiece, the Australian Petroleum Production and Exploration Association, simply has no valid claim to being part of the solution when it and its members are aggressively pushing to expand gas extraction.

Parts of our economy today still rely on oil and gas, but the only course of action compatible with net-zero emissions and a safe climate is to spare no effort in the transition to cleaner options like renewable energy or alternative materials - not prolonging existing, dangerous incumbents like gas.

It is also a cop out for the gas industry to mention the royalties companies pay, without also mentioning the billions of dollars of public subsidies the industry receives and the minimal tax many of those same companies pay. Let's see them published together.

Instead, to protect their profits, fossil-fuel companies have perpetuated decades of misinformation about climate change, spent billions on political donations to stall climate action and secured public funding for a "gas-led recovery".

When it comes to climate change, fossil fuels - like coal, oil and gas - are the cause, because they are the biggest driver of greenhouse gas emissions.

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