How to get an ETS through the Senate

After the contortions of the last few weeks, I think it’s pretty safe to draw the following conclusions
(i) The Liberal Party is all over the shop on climate change and is going to stay that way, at least as long as Brendan Nelson remains leader
(ii) Whatever legislative proposal the government comes up with, the Opposition will oppose it
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The litterbug argument

Over the fold my piece from yesterday’s Fin, a response to the argument that since Australia only contributes about 2 per cent of global CO2 emissions, there’s no real point in us doing anything. I’ve drawn on discussions here, so thanks to everyone who participated.

Although the article includes some allusions to the Green Paper, the deadlines involved meant that it was mostly written before the Green Paper was released, and it doesn’t deal with any of the details, on which more soon I hope.

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Meetings, bloody meetings

There have been quite a few important meetings lately including COAG, G8 and the Major Economies Meeting on Energy Security and Climate Change (MEM) in Japan, attended by Kevin Rudd. Anyone expecting substantial progress to come out of these particular meetings was surely disappointed. But to look on the bright side, if any of these meetings had been held even a year ago, the results would have represented a substantial breakthrough.

Starting with COAG, the obvious disappointment was the lack of any immediate response to the drastic problems facing the Murray-Darling system. While most of the policies are now pointing in the right direction, nothing will really happen until 2009. The decision not to increase the amount of water that could be traded out of a region from 4 per cent to 6 per cent (still a tight restriction) was symbolic of the process as a whole. That said, there is currently so little water in the system that no amount of reform is going to do much good in the short run. We have to hope for the best.

The Major Emitters Meeting produced fairly predictable statements by China and India that the developed countries had to do more. With the US still to make any firm commitment, we’re unlikely to see much advance on that before the Copenhagen meeting, with a new Administration, next year. Still, that was accompanied by an acceptance in principle of targets for reduced emissions. And at least in one respect, these countries are walking the walk. Fuel subsidies in Asia are being cut in response to increased costs associated with higher oil prices. That’s a pretty sharp contrast with proposals for new concessions coming from (among others), Clinton and McCain in the US and Nelson and Turnbull here.

Finally, although the G8 proposal for a 50 per cent in global emissions by 2050 was carefully hedged, it’s still good news. Although this wasn’t spelt out a 50 per cent in global emissions requires a much bigger cut in developed country emissions, so even a weak commitment now will make backsliding harder in Copenhagen.

What I’ve been reading

Climate Code Red by David Spratt and Philip Sutton (more details here). This is a book that will doubtless be welcomed by those with a sceptical attitude towards the mainstream discussion represented by the IPCC, and makes many points that will be familiar from debates here – there’s more uncertainty in the IPCC models than is commonly recognised, important factors have been omitted, the intergovernmental process is subject to political constraints, emissions projections are problematic and so on. On a first reading, Spratt and Sutton make a pretty convincing case that the apparent scientific consensus position is well off the mark.

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Carbon taxes vs emissions trading

Now that nearly everyone is agreed on the need for a market-based policy instrument to reduce CO2 emissions, the biggest unresolved question is whether to implement carbon taxes, tradeable emissions permits or some hybrid of the two.

I support tradeable permits, but I’ve never really spelt out my reasons for doing so. It’s important before doing this to observe that the differences between the two approaches are more limited than most of the discussion suggests. Both ensure the existence of a price for CO2 emissions and both can be set up to distribute the costs of emissions in a lot of different ways.

That said, tradeable permits have some significant advantages in my view.
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Garnaut draft report released

The Garnaut Review draft report has just come out. The site is clogged, but I’ve managed to get a copy of the report and press release (I’ve attached the latter here.

There’s a lot of discussion of the Murray Darling Basin where the worst-case projections are about as grim as they can possibly be. My UQ research group (Risk and Sustainable Management Group) did the economic modelling that translated the climatic projections into predicted changes in land and water use. There are big adverse impacts under most of the ‘business as usual’ scenarios. On the other hand, in the projections where CO2 concentrations are held to 450 ppm things aren’t bad, and even 550 ppm would still allow irrigation to continue.

More soon on the policy recommendations. Whether or not the government ultimately follows Garnaut’s proposed model, there’s no doubt that the Review has shifted the terms of debate substantially. Those (like the Federal Opposition) who are tempted to play the issue for short-term political gain will pay a big price in the end if they succumb to that temptation.

Radical scepticism

For a long time, I’ve used the term “delusionist” rather than “sceptic” to describe those who reject mainstream science on global warming. In general, the term “sceptic” is inappropriate for the vast majority of this group, since their position is hardly ever based on a willingness to look sceptically at evidence without reliance on a preconceived views. The gullibility with which so many delusionists parrot the latest talking points (“Hockey stick broken!”, “Global warming on Mars”, Warming stopped in 1998″ and so on) is clearly incompatible with any kind of scepticism. And, given the volume of evidence that has accumulated on the issue, only an adherent of some very strong form of scepticism could reasonably remain undecided. Such a sceptic has now appeared in the form of Adam Shand, a Channel 9 journalist who said, in a recent Sunday program on global warming “it’s only an assumption” that summer is warmer than winter. I imagine he gets great prices on ski holidays, by going in January!

Of course, once you’ve gone this far in scepticism, why not go the whole hog? Radical scepticism provides the perfect argument for rejecting action to mitigate global warming – if we have no reason to believe in the existence of the external world, then trashing it can’t be a problem, can it?
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The nuclear option

Unsurprisingly, evidence that the Rudd government is serious about emissions trading has produced a new round of calls for the development of nuclear power in Australia. There is certainly a case to be made that an expansion of nuclear power should be part of the global response to climate change. But the latest chatter isn’t part of a serious response to the problem of climate change; rather it’s an attempt to duck the issues raised by an emissions trading scheme.

The crucial points to bear in mind are these

* Nuclear power will never be viable in Australia without a high price on carbon and a clear commitment that the price is going to remain high. So, there is no point in raising the nuclear option as a cover for opposing emissions trading

* There is no way that Australia is going to lead the rest of the developed world (in particular the US, but the same points apply to most of Europe and Japan) on this. The US is attempting to restart its nuclear industry on existing brownfield sites. This process started with the passage of new legislation in 2002 and, if all goes well, construction on the first plants might begin in 2010 and (very optimistically) be completed by 2014. Given our lack of any regulatory capacity, construction and management expertise and so on, we won’t even be able to get started before the US industry shows the way on new greenfield sites and produces a significant number of operating plants, say by 2020. With a fast paced program, we might get plants on line by 2030

* It follows that whether or not the Rudd government (or whoever is in government for the next 5 to 10 years) changes its policy on nuclear power will make no difference to anything of substance

Bad news on the Murray

Grim if unsurprising news from this Leaked report on the state of the Murray-Darling river system. The failure of the autumn rains (again) has wiped out the modest benefits from the (already fading) La Nina event. The problem has been generated by a long history of bad policy, but, at this point, even the best water policy in the world won’t help if it doesn’t rain.

The implications for places like the Coorong are dire. It seems likely, in view of problems like the buildup of acid sulphate soils, that the barrages separating the Lakes Alexandrina and Albert from the sea will have to be removed (this is being staved off by emergency measures for the moment). But the barrages were constructed as an early response to the expansion of irrigation upstream, which reduced flows and, as a result of sea water inflow, threatened to turn predominantly freshwater lakes into salt water (characteristically of such interventions, the barrages overcorrected, eliminating the occasional salt water phases, and changing the ecological balance in the lakes). So, the only sustainable response is to increase flows in the whole system which will require substantial reductions in extractive uses.

But, if the repeated failures of the autumn rains, and the higher frequency of drought represent a permanent climate change, it seems likely we will have to accept both substantial ecological damage and reduced agricultural output. My research group at UQ has been working on this for the Garnaut Review and we should have a report out fairly soon – some of the scenarios are indeed grim.

Libertarians and global warming

I had a set-to with Jonathan Adler of Volokh about DDT recently, so I was pleased to note this piece on free-market environmentalism and climate change, which makes a number of points I’d been thinking about following debates over at the Australian Libertarian blog. Rather than recapitulate Adler’s post, I’ll make a number of points of my own regarding the response of (most, though not all) libertarians to climate change, which I think are in the same spirit:
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