Australian Opposition Unveils Bold, Sweeping (And Completely Voluntary) Climate Policy

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According to documents obtained by Reuters, the scheme, funded with public money, would buy carbon offsets from energy efficiency and forestry projects, among others. The idea, crafted ahead of elections this year in which climate shift will be a big issue for voters, has sparked concern it will not drive deep emissions cuts by industry and risks putting too much pressure on the public purse as sole buyer.

The government of Prime Minister Kevin Rudd, who made a 2007 election promise to push for emissions trading to fight climate change, plans to reintroduce its package of carbon trading laws into the Senate after parliament resumes next week.

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The opposition has been testing a number of ideas and soliciting feedback, with the offset fund seemingly a key focus. According to confidential correspondence to the office of Greg Hunt, the shadow minister for climate change, some organizations have called for clarity on how the carbon fund scheme could be ramped up to force greater industry efficiency.

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Wilder said the idea seemed similar to the previous Howard government's A$400 million Greenhouse Gas Abatement Program, which was criticized as ineffective in a 2008 government report because it failed to create sufficient offset projects. "Hunt is reported to have been advocating setting up a large fund backed by government money to in effect buy voluntary emissions reductions from business," said Wilder. "The idea is that you would start off buying reductions from the least cost areas," he said, such as energy efficiency and forestry and predicted a carbon price of A$10 to A$14 a tonne.

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http://www.reuters.com/article/idUSTRE60Q0XI20100127