By Giles Parkinson on 8 May 2012
Henry Derwent, the outgoing head of the International Emissions Trading Association, got it about right when he was asked the reason for the dramatic demise in international carbon markets over the last few years.
Some of its wounds had been self-inflicted, he told Bloomberg in an interview. But the bulk of its problems came from the peddling of three key lies, namely that climate science is exaggerated, boring and unimportant; that nations shouldn’t protect the climate because others aren’t; and that markets are not the best solution.
“It’s not surprising that those who don’t want to do anything are seduced by the falsehoods,” he said. Derwent has reason to be rueful, the carbon price in the world’s biggest market has slumped from $45 in 2008, when he took up his post, to less than $10 now.
And it’s equally surprising that politicians such as Rob Oakeshott, the independent who was one of the key members of the multi-party committee that framed Australia’s carbon price legislation, the Clean Energy Future package, should be baulking at one of its key elements less than two months before the scheme is implemented.
Oakeshott is now saying that the proposed $15/tonne floor price due to be introduced when the scheme moves from a tax to a fully trading commodity in 2015, should be removed, echoing the claims of business who have been pushing aggressively for a low carbon price – an argument that business groups have prosecuted in just about every jurisdiction that has, or is, considering a carbon price; Europe, Asia, and north and south America.
For more on this article go to http://reneweconomy.com.au/2012/oakeshott-loses-plot-and-falls-through-carbon-floor-17534