The Global Greenhouse Regime. Who Pays? (UNU, 1993, 382 p.): Part III National greenhouse gas reduction cost curves: 13 Greenhouse gas emission abatement in Australia: (introduction...)

The Global Greenhouse Regime. Who Pays? (UNU, 1993, 382 p.)

List of contributors

Preface

Acknowledgements

Part I Measuring responsibility

1 Introduction

(introduction...)

The greenhouse effect

What was decided at Rio?

Protocol negotiating difficulties

Key issues for climate change negotiations

References

2 The basics of greenhouse gas indices

(introduction...)

Apples and oranges

Implications

Conclusion: indices do matter

References

3 Assessing emissions: five approaches compared

(introduction...)

Introduction

Comprehensiveness compared

Accuracy by category

Regional and national emissions by source

Conclusions

References

Appendix A: Estimates of greenhouse gas emissions

Appendix B: Calculating cumulative and current emissions

4 Who pays (to solve the problem and how much)?

(introduction...)

Indices of allocation: a brief review

Accountability

Equity and efficiency

Conclusion

References

Part II Resource transfers

5 North-South carbon abatement costs

(introduction...)

Climate change convention

Method overview

Implications for the South

Notes and references

6 North-South transfer

(introduction...)

Obligation to pay indices

Redistribution of incremental cost

Benchmarks

UN scale of payments

Financing mechanisms

Conclusion

Notes and references

7 Insuring against sea level rise

(introduction...)

Insurability of losses

Oil pollution

Nuclear damage

Implications

The insurance scheme proposed by AOSIS

The Climate Change Convention

Notes and references

Appendix: Scheme proposed by AOSIS for inclusion in the Climate Change Convention

Part III National greenhouse gas reduction cost curves

8 Integrating ecology and economy in India

(introduction...)

Introduction

Emissions inventory

Energy efficiency and fuel substitution

Emissions and sequestration from forest biomass

Conclusions

References

9 Carbon abatement potential in West Africa

(introduction...)

Introduction

Long-term energy and carbon emissions scenarios

Options for rational energy use and carbon conservation

Economic opportunities for implementation

Policy issues for the region

Conclusions

References

10 Abatement of carbon dioxide emissions in Brazil

(introduction...)

Brazil energy economy

Energy subsector analyses

Changing land-use trends

Conclusion

References

11 Thailand's demand side management initiative: a practical response to global warming

(introduction...)

Introduction

End-use energy efficiency policies

Costs and benefits of the DSM master plan

CO2 reductions from the DSM Plan

Why should other developing countries adopt DSM?

The role of the multilateral development banks

Conclusions

References

12 Carbon abatement in Central and Eastern Europe and the Commonwealth of Independent States

(introduction...)

Energy-environment nexus

Scenarios for the future

Country results

Policy implications

Conclusion

References

13 Greenhouse gas emission abatement in Australia

(introduction...)

Abatement of energy sector emissions

Economic impact of abatement strategies

Non-energy emission abatement

Australia's international role

Carbon taxes, externalities and other policy instruments

References

Part IV Conclusion

14 Constructing a global greenhouse regime

(introduction...)

Conditionality and additionality

Technology transfer

Multi-pronged approach

Implementation procedures

Regional building blocks

North-'South' conflicts

Conclusion

Notes and references

Appendix: The Climate change convention

Introduction

Background

Climate change convention

Article 1. Definitions

Article 2. Objective

Article 3. Principles

Article 4 Commitments

Article 5. Research and systematic observation

Article 6. Education, training and public awareness

Article 7. Conference of the Parties

Article 8. Secretariat

Article 9. Subsidiary body for scientific and technological advice

Article 10. Subsidiary Body for implementation

Article 11. Financial mechanism

Article 12. Communication of information related to implementation

Article 13. Resolution of questions regarding implementation

Article 14. Settlement of disputes

Article 15. Amendments to the Convention

Article 16. Adoption and amendment of annexes to the Convention

Article 17. Protocols

Article 18. Right to vote

Article 19. Depositary

Article 20. Signature

Article 21. Interim arrangements

Article 22. Ratification, acceptance, approval or accession

Article 23. Entry into force

Article 24. Reservations

Article 25. Withdrawal

Article 26. Authentic texts

(introduction...)

Abatement of energy sector emissions
Economic impact of abatement strategies
Non-energy emission abatement
Australia's international role
Carbon taxes, externalities and other policy instruments
References

Hugh Saddler

Greenhouse gas emissions have been at the forefront of public policy debate in Australia for over three years. In October 1990 the federal government adopted an 'interim planning target' - to reduce emissions of greenhouse gases to levels 20 per cent below 1988 emissions by 2005. The reduction of 20 per cent relative to 1988 levels was first proposed at an international conference held in Toronto, Canada in 1988; it is referred to as the Toronto target in this chapter.

Gases controlled by the Montreal Protocol on Substances that Deplete the Ozone Layer, that is, chlorofluorocarbons and related compounds, were not included, but the government had previously announced that the use of CFCs would be eliminated by 1995. The undertaking with respect to other greenhouse gases was subject to the important qualification that it would not proceed with measures which have net adverse economic impacts nationally or on Australia's trade competitiveness.

The eight Australian state and territory governments have important policy powers relating in particular to the electricity and gas industries and to the control of pollution. Their concurrence and participation is virtually a prerequisite for the realization of the federal target. The eight governments have agreed to participate with the federal government in the development of a national greenhouse response strategy. A draft strategy document was released for public comment in June 1992.

Although it is normally viewed as a developed country, Australia's economy is heavily dependent on exports of raw and partly processed commodities. Among the most important Australian exports are coal, liquefied natural gas (LNG), and alumina and aluminium metal smelted with coal-fired electricity. Consideration of greenhouse response strategies has therefore been strongly influenced by concerns about the possible effects of any abatement measures on Australia's international competitiveness as a supplier of fossil fuel intensive commodities.

A steady stream of reports and studies from government, business and nongovernmental organizations has provided the material for an enthusiastic public policy debate. Many of the reports have sought to estimate the costs to the Australian economy of reducing carbon dioxide emissions by changes in energy supply and use, focusing in particular on the costs of meeting the Toronto target. This narrow emphasis on a single goal reflects partly the concerns of special interest groups who fear the impact of achieving the target on their activities. Most studies have sought to estimate the macro-economic effects of a carbon tax on fossil fuel use that would suppress demand for fossil fuels in 2005 to the Toronto target level. The narrow focus of so many of these studies has had two unfortunate effects. First, it has encouraged an 'all or none' view of the desirability of implementing emission reduction policies. And second, it has led to neglect of policy instruments other than a carbon tax.

Nevertheless, the studies have greatly improved our understanding of the workings of the Australian energy system and its interaction with the wider economy. Very much less is known about non-energy related sources of greenhouse gas emissions, which are the principal sources of the other important anthropogenic greenhouse gases such as methane and nitrous oxide.

In this chapter, I examine the cost and scope of emission abatement measures available in Australia. I also review estimates of the effect on the Australian economy of achieving various levels of abatement.