Showing posts with label carbon tax news. Show all posts
Showing posts with label carbon tax news. Show all posts

Tuesday, August 28, 2012

Government to Scrap Carbon Floor Price

After weeks of secretive talks between the Gillard government and the Greens, Climate Change Minister Greg Combet has announced Labor will scrap the planned $15 floor price on carbon permits in a major overhaul of the carbon pricing scheme.

Following intense lobbying from business and threats by the independent MP Rob Oakeshott to block the floor price, the government will ditch the mechanism and instead restrict the purchase of cheap overseas permits from developing countries.

A limit on the amount of United Nations-backed permits that Australian companies can buy will effectively prop up the price at home.

Climate Change Minister Greg Combet will announce a change in the carbon floor price.Climate Change Minister Greg Combet plans to scrap the $15 carbon floor price. Photo: Alex Ellinghausen

Mr Combet also announced plans to link Australia's scheme to Europe's emissions trading scheme from 2015, which is likely to have the effect of matching the two prices.
The link with Europe means that Australian companies can start buying European permits - which are now trading at $9.80 - right away to meet their future liabilities.

This could make the carbon price cheaper overall for Australian businesses, though the European price is likely to rise by the end of the decade as the European Union moves to make restrictions of its own.

Australian companies will only be able to meet 12.5 per cent of their liability under the Australian carbon scheme with the UN-backed permits.

And from 2018 - or possibly sooner - Australian companies will be able to sell credits in Europe. This could be a boon for farmers, who can generate credits through changes to their land practices, such as tree planting, though Mr Combet said that aspect was still to be negotiated.

The carbon price, which came in on July 1, will initially be fixed at $23 and will rise slightly over the next two years, when it becomes a floating-price emissions trading scheme.

Europe has the largest emissions trading scheme in the world. A linkage means that carbon permits can be traded back and forth between Australia and Europe. The idea is that the free market then finds the cheapest possible way to reduce carbon. From an environmental viewpoint, it does not matter where the carbon cuts are made.

The floor price was intended to create certainty for potential investors in clean energy. But businesses complained it would be an administrative headache.

Without a restriction of the UN-backed international permits, the Australian price could crash to as low as $3 or $4. The Greens have been concerned that a very low carbon price would not be enough to drive investment in cleaner energy such as wind, solar and wave power.

Today's announcement is also likely to have an effect on negotiations between Energy Minister Martin Ferguson and electricity generators who could be paid billions of dollars to phase out their dirtiest power plants.

The likely price of carbon over the next decade is one factor in deciding the value of these power plants. They may argue that scrapping the floor price raises the value of their assets.
The Greens have already backed the changes.


Independent MP Rob Oakeshott said this afternoon he would also support the legislation.
He said the announcement would protect Australia's emissions trading scheme from some ''very difficult decisions into the future''.

Opposition Leader Tony Abbott said the changes showed the government was all at sea on the carbon tax.

''You can't fix it. You've just got to scrap it,'' Mr Abbott told reporters in Rockhampton.

''We haven't had the carbon tax for two months yet and they've admitted there is a fundamental flaw at the heart of the carbon tax.''

Mr Abbott said there would be a ''huge hole'' in the budget as a result of the decision.

''If you can't take the price for granted, you can't take the revenue for granted, and if you can't take the revenue for granted, you can't rely on the compensation,'' he said.

However Mr Combet said the government would not reduce household assistance payments and tax cuts set up to compensate for the price impacts of the carbon tax.

Asked if he was contemplating any further changes Mr Combet said: ‘‘no’’.

''We will not be cutting any household assistance,'' he said.

''We committed to it and you might recall that there are further tax cuts that have been legislated from 2015 as well.''


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Sunday, August 26, 2012

Carbon Tax Not Yet ‘Catastrophic’: Abbott


Opposition Leader Tony Abbott has conceded the introduction of the carbon tax has not immediately been “catastrophic”.

But he is adamant its long-term effects will eventually spell disaster for Australia’s economy.
Speaking at the Tasmanian state council of the Liberal Party, Mr Abbott restated his promise to abolish the controversial tax if he is elected prime minister at the election due next year.

“Yes, the initial impact of the carbon tax may not be absolutely catastrophic,” he told the council conference.

“But I ask you Tasmanians to understand the logic - if there is any - in a five-and-a-half per cent increase in your power prices because of the carbon tax, even though some 85 per cent of your electricity is hydro-generated.”

Mr Abbott said government modelling of the tax’s impact painted a dire picture for Australia’s future.

“I’m often accused of running a scare campaign about the carbon tax,” he said.
“I invite people who think I could be exaggerating the impact of the carbon tax to look at the government’s own modelling.”

He said it showed Australians would on average be $5000 worse off by 2050 and the country would miss out on $1 trillion.

“It’s as if our country were to shut down for a whole year because of the carbon tax,” he said.
“This is an unmitigated economic disaster for our country.”

Mr Abbott announced he had formed a working group of Liberal senators to examine how the struggling Tasmanian economy can be grown.

Tuesday, December 6, 2011

Climategate (Part II) A sequel as ugly as the original.


The conventional wisdom about blockbuster movie sequels is that the second acts are seldom as good as the originals. The exceptions, like The Godfather: Part II or The Empire Strikes Back, succeed because they build a bigger backstory and add dimensions to the original characters. The sudden release last week of another 5,000 emails from the Climate Research Unit (CRU) of East Anglia University​—​ground zero of “Climategate I” in 2009​—​immediately raised the question of whether this would be one of those rare exceptions or Revenge of the Nerds II.

Before anyone had time to get very far into this vast archive, the climate campaigners were ready with their critical review: Nothing worth seeing here. Out of context! Cherry picking! “This is just trivia, it’s a diversion,” climate researcher Joel Smith told Politico. On the other side, Anthony Watts, proprietor of the invaluable WattsUpWithThat.com skeptic website, had the kind of memorable line fit for a movie poster. With a hat tip to the famous Seinfeld episode, Watts wrote: “They’re real, and they’re spectacular!” An extended review of this massive new cache will take months and could easily require a book-length treatment. But reading even a few dozen of the newly leaked emails makes clear that Watts and other longtime critics of the climate cabal are going to be vindicated.

Climategate I, the release of a few thousand emails and documents from the CRU in November 2009, revealed that the united-front clubbiness of the leading climate scientists was just a display for public consumption. The science of climate change was not “settled.” There was no consensus about the extent and causes of global warming; in their private emails, the scientists expressed serious doubts and disagreements on some major issues. In particular, the email exchanges showed that they were far from agreement about a key part of the global warming narrative​—​the famous “hockey stick” graph that purported to demonstrate that the last 30 years were the warmest of the last millennium and which made the “medieval warm period,” an especially problematic phenomenon for the climate campaign, simply go away. (See my “Scientists Behaving Badly,” The Weekly Standard, December 14, 2009.) Leading scientists in the inner circle expressed significant doubts and uncertainty about the hockey stick and several other global warming claims about which we are repeatedly told there exists an ironclad consensus among scientists. (Many of the new emails make this point even more powerfully.) On the merits, the 2009 emails showed that the case for certainty about climate change was grossly overstated.

More damning than the substantive disagreement was the attitude the CRU circle displayed toward dissenters, skeptics, and science journals that did not strictly adhere to the party line. Dissenting articles were blocked from publication or review by the Intergovernmental Panel on Climate Change (IPCC), requests for raw data were rebuffed, and Freedom of Information Act requests were stonewalled. National science panels were stacked, and qualified dissenters such as NASA prize-winner John Christy were tolerated as “token skeptics.” The CRU circle was in high dudgeon over the small handful of skeptics who insisted on looking over their shoulder, revealing the climate science community to be thin-skinned and in-secure about its enterprise​—​a sign that something is likely amiss. Even if there was no unequivocal “smoking gun” of fraud or wrongdoing, the glimpse deep inside the climate science community was devastating. As I wrote at the time (“In Denial,” March 15, 2010), Climategate did for the global warming controversy what the Pentagon Papers did for the Vietnam war 40 years ago: It changed the narrative decisively.

The new batch of emails, over 5,300 in all (compared with about 1,000 in the 2009 release), contains a number of fresh embarrassments and huge red flags for the same lovable bunch of insider scientists. It stars the same cast, starting with the Godfather of the CRU, Phil “hide the decline” Jones, and featuring Michael “hockey stick” Mann once again in his supporting role as the Fredo of climate science, blustering along despite the misgivings and doubts of many of his peers. Beyond the purely human element, the new cache offers ample confirmation of the rank politicization of climate science and rampant cronyism that ought to trouble even firm believers in catastrophic climate change.

In fact, the emails display candid glimpses of concern inside the CRU circle. Peter Thorne of NOAA (National Oceanographic and Atmospheric Administration), who earned his Ph.D. in climate science at East Anglia in 2001, wrote Phil Jones in a 2005 message, “I also think the science is being manipulated to put a political spin on it which for all our sakes might not be too clever in the long run.” An appeal to “context,” which the climate campaigners say is crucial to understanding why excerpts such as this one are unimportant, does quite the opposite, and only points to the problems the climate change campaigners have brought upon themselves by their tribalism.

This exchange between Thorne and Jones, along with numerous similar threads in the new cache, is concerned with what should and shouldn’t be included in a chapter of the IPCC’s 2007 fourth assessment report​—​a chapter for which Jones was the coordinating lead author along with another key Climategate figure, Kevin Trenberth. The complete chapter (if you’re keeping score at home, it’s Chapter 3 of Working Group I, “Observations: Surface and Atmospheric Climate Change”) lists 10 “lead authors” and 66 “contributing authors” in addition to Jones and Trenberth. One of Jones’s emails from 2004 displays how explicitly political the process of assembling the IPCC report is: “We have a very mixed bag of LAs [lead authors] in our chapter. Being the basic atmos obs. one, we’ve picked up number of people from developing countries so IPCC can claim good geographic representation. This has made our task harder as CLAs [contributing lead authors] as we are working with about 50% good people who can write reasonable assessments and 50% who probably can’t.”

The final chapter was amended along lines Thorne recommended, but several other objections and contrary observations (one in particular from Roger Pielke Jr. about extreme weather events that has been subsequently vindicated) were scornfully dismissed. And appeals to context avoid the question: Is this “science-by-committee” a sensible way to sort out contentious scientific issues that hold immense public policy implications? Perhaps a politicized, semi-chaotic process like the IPCC is unavoidable in a subject as wide-ranging and complex as climate change; future historians of science can debate the issue. But the high stakes involved ought to compel a maximum of open debate and transparency. Instead, the IPCC process places a premium on gatekeepers and arbiters who control what goes in and what doesn’t, and it is exactly in its exercise of the gatekeeping function that the CRU circle has shredded its credibility and trustworthiness.

One thing that emerges from the new emails is that, while a large number of scientists are working on separate, detailed nodes of climate-related issues (the reason for dozens of authors for every IPCC report chapter), the circle of scientists who control the syntheses that go into IPCC reports and the national climate reports that the U.S. and other governments occasionally produce is quite small and partial to particular outcomes of these periodic assessments. The way the process works in practice casts a shadow over one of the favorite claims of the climate campaign​—​namely, that there exists a firm “consensus” about catastrophic future warming among thousands of scientists. This so-called consensus reflects only the views of a much smaller subset of gatekeepers.

Beyond additional bad news for the hockey stick graph, is there anything new in these emails about scientific aspects of the issue? This will take time to sort out, but I suspect anyone with the patience to go through the weeds of all 5,300 messages and cross check them against published results may well discover troubling new aspects of how climate modeling is done, and how weak the models still are on crucial points (such as cloud behavior). Some of the new emails frankly acknowledge such problems. There are arcane discussions about how to interpolate gaps in the data, how to harmonize different data sets, and how to resolve the frequent and often inconvenient (because contradictory) anomalies in modeling results. Definite examples of political influence have emerged already from a first pass over a sample of the massive cache.

In the editing process before the IPCC’s 2001 third assessment report, Timothy Carter of the Finnish Environmental Institute wrote in 2000 to three chapter authors with the observation, “It seems that a few people have a very strong say, and no matter how much talking goes on beforehand, the big decisions are made at the eleventh hour by a select core group.” In this case, decisions at the highest levels of what specific figures and conclusions were to appear in the short “summary for policy makers”​—​usually the only part of the IPCC’s multivolume reports that the media and politicians read​—​required changing what appeared in individual chapters, a case of the conclusions driving the findings in the detailed chapters instead of the other way around. This has been a frequent complaint of scientists participating in the IPCC process since the beginning, and the new emails show that even scientists within the “consensus” recognize the problem. Comments such as one from Jonathan Overpeck, writing in 2004 about how to summarize some ocean data in a half-page, reinforce the impression that politics drives the process: “The trick may be to decide on the main message and use that to guid[e] what’s included and what is left out.”

No amount of context can possibly exonerate the CRU gang from some of the damning expressions and contrivances that appear repeatedly in the new emails. More so than the 2009 batch, these emails make clear the close collaboration between the leading IPCC scientists and environmental advocacy groups, government agencies, and partisan journalists. There are repeated instances of scientists tipping their hand that they’ve thrown in their lot with the climate ideologues. If there were only a handful of such dubious messages, they might be explained away through “context,” or as conciliatory habits of expression. But they are so numerous that it doesn’t require an advanced degree in pattern recognition to make out that these emails constitute not just a “smoking gun” of scientific bias, but a belching howitzer. Throughout the emails numerous participants refer to “the cause,” “our cause,” and other nonscientific, value-laden terms to describe the implications of one dispute or another, while demonizing scientists who express even partial dissent about the subject, such as Judith Curry of Georgia Tech.

Since the beginning of the climate change story more than 20 years ago, it has been hard to sort out whether the IPCC represents the “best” science, or merely the findings most compatible with the politically driven climate policy agenda. Both sets of emails have lifted the lid on the insides of the process, and it isn’t pretty.

A good example of how the political-scientific complex works hand-in-glove to tightly control the results comes from May 2009, when the IPCC authors were working on a “weather generator,” which they hoped would produce climate change scenarios tailored to localities, so as to promote favored adaptive measures (sea walls, flood control, drought readiness, etc.).

This is a small but hugely controversial aspect of climate modeling, and one where politicians and advocacy groups (the World Wildlife Fund was especially keen to have this kind of work done) may well be asking scientists to do the impossible. But there’s research money in it, so scientists are only too happy to oblige. Kathryn Humphrey, a science adviser in Britain’s DEFRA (Department of Environment, Forestry, and Rural Affairs​—​Britain’s EPA) wrote a worried note to Phil Jones and several other scientists involved in the project about criticisms of the cloistered working group behind the weather generator scheme, noting, “Ministers have also raised questions about this so we will need to go back to them with some further advice.”

Jones tries to reassure Humphrey that he’s got the working group under control: “As I’ve said on numerous occasions, if the WG [working group] isn’t there, all the people that need [the weather generator] will go off and do their own thing.

This will mean that individual sectors and single studies will do a whole range of different things. This will make the uncertainties even larger!” What Jones is referring to are numerous independent scientific efforts to “downscale” climate models to predict local impacts, and the fact that the results of these separate efforts have been chaotic, rather than demonstrating consensus. Hence the need for someone in authority to marginalize uncertainties and contradictory results. But this is properly called politics, not science.

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Tuesday, October 25, 2011

Carbon Tax Opposition Grows: Newspoll

There is growing opposition to the carbon tax after the House of Representatives passed bills for the scheme, a Newspoll has found.


Opposition to the tax has jumped six percentage points to 59 per cent, the poll commissioned by The Australian has found.

Support for the tax has fallen four points to 32 per cent.


But it's not all bad news for Labor, with the poll showing there was a four-point drop in the Coalition's primary vote to 45 per cent, the lowest since May this year.


The Greens climbed back to a record 15 per cent primary vote support, rising three points.


Prime Minister Julia Gillard's personal satisfaction with voters rose three percentage points to 31 per cent.

Opposition Leader Tony Abbott's rating was down from 36 per cent to 34 per cent.


However, Mr Abbott still maintained the lead as preferred prime minister at 39 per cent compared with Ms Gillard's 36 per cent.

Newspoll chief Martin O'Shannessy said Labor's primary vote was stuck on 29 per cent, unchanged from two weeks ago while the Coalition's loss of support had mostly gone to the Greens.


Ms Gillard might take heart from the improvement in her approval rating, he said.


But continuing opposition to the carbon tax made it hard to accept the government's view that the passage of its legislation through Parliament would improve Labor's position.


"We have been tracking this now for a while. Back in April-May it was 60, in July 59," Mr O'Shannessy told ABC Radio.

The latest Newspoll has opposition to the carbon tax still at 59 per cent.


Parliamentary secretary Kate Lundy believes commonsense will prevail on the carbon tax.

"This policy is embedded in good science," she told Sky News.


"I think the opposition is starting to be exposed in the lack of sincerity in their fear campaign."


People were starting to question the opposition's motivation, knowing it was about "dirty politics" not policy.

Opposition frontbencher George Brandis said the Coalition was "very, very happy" about the latest Newspoll.


"For the Labor Party to find comfort from the fact they're only 16 [percentage points] behind the Coalition on the primary vote ... just goes to show how desperate the Labor Party's situation has become," he said.


Senator Brandis rejected any suggestion the Coalition was playing politics over the carbon tax.

"We simply think it is a stupid idea and, by a majority to two to one, so do the Australian people."

Tuesday, August 30, 2011

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Tuesday, July 26, 2011

Qld Taxpayers Warned about Carbon Tax


Queensland taxpayers will pay the price for state-owned power generators being devalued by the federal carbon tax, a Senate committee has been warned.

A committee scrutinising the proposed federal tax sat in Brisbane on Monday, where Queensland Resources Council chief Michael Roche argued Australia should not adopt a tax ahead of its international competitors.

The Bligh government has estimated the asset value of state-owned generators will decrease by around $1.7 billion.

Mr Roche said Queenslanders would likely have to prop up the generators after write-downs, although Premier Anna Bligh later told reporters that was a "furphy".

"In the case of government-owned generators, there's only one source of equity and it's the Queensland Treasury, it's the Queensland taxpayer," Mr Roche told the committee.

"Or other programs will be cut to fund the injection into the government-owned generators."

Mr Roche said the carbon tax was expected to comprise up to half of the operating costs of the state-owned generators.

But Labor senator Doug Cameron attacked the ACIL Tasman modelling Mr Roche quoted, saying it had proven unreliable.

The other potential impact on taxpayers was a predicted $1 billion loss in coal royalties to the Queensland government by 2020 due to the premature closure of mines, Mr Roche said.

"I would have thought that the Queensland government would see the risk for their single largest source of revenues outside of grants from the federal government," he said.

But Ms Bligh told reporters the industry had a "very strong future", with almost $60 billion worth of mining applications in the pipeline.

She said federal treasury modelling showed an expected 47 per cent growth by 2020 would only drop to a 45 per cent growth at worst.

"Let's be realistic here, the Queensland coal industry has taken some 40 years to get to where they are now and they expect to increase by almost 50 per cent in the next eight years," she said.

"I think the bigger question frankly is whether the industry itself, with or without changes in federal government regulations, is capable of that sort of expansion."

The committee heard Queensland Chamber of Commerce polling shows the tax will make 10 per cent of the state's small to medium-sized businesses unviable by raising power, transport and supply costs.

"Anybody with a power point, with an engine, with a gantry crane, a mig welder, will pay more for what they do," the chamber's David Goodwin said.

"Right across our economy we feel very, very exposed.

"We're not an economy which sits with a lot of head offices, sitting in buildings, working on computers.

"We are an economy which actually does stuff, and because of that we will be in the eye of the storm."

Senator Cameron ridiculed the chamber for relying on its own surveys rather than Queensland Treasury estimates, which predict strong growth after the recovery from summer's floods and cyclone.

"You're the Tony Abbott of the business community, you're the weathervane, are you?" he said.

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