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2004-2005-2006-2007
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
Avoiding Dangerous Climate Change (Kyoto Protocol Ratification) Bill 2007
EXPLANATORY MEMORANDUM
(Circulated by authority of Mr Garrett)
Avoiding Dangerous Climate Change (Kyoto Protocol Ratification) Bill 2007
OUTLINE
1. The Intergovernmental Panel on Climate Change delivered a stark warning to
the world when in 2007 it released the three reports that constitute its Fourth
Assessment Report. Some of the key conclusions include:
· "Warming of the climate system is unequivocal, as is now evident from
observations of increases in global average air and ocean temperatures,
widespread melting of snow and ice, and rising global mean sea level."
Warming is almost certainly due to human activity.
· Eleven of the last 12 years (1995-2006) rank among the 12 warmest years
since 1850;
· The total temperature increase from 1850-1899 to 2001-2005 was 0.76
degrees.
· Global average sea level rose at an average of 1.8mm per year over 1961 to
2003, including a 3.1mm rise from 1993-2003.
· Mean temperatures are likely to rise by up to 4 degrees by the century;
· Ongoing water security problems are very likely to increase by 2030 in
southern and eastern Australia;
· Ongoing coastal development is very likely to exacerbate risk to lives and
property from sea-level rise and storms, including in Cairns and south east
Queensland;
· These changes represent the greatest moral, economic and environmental
challenge facing Australia.
2. The changing global climate will affect our natural and built environments as
temperatures rise, rainfall patterns change and sea levels rise and force
adjustments in our way of life. As extreme weather events become more
frequent and changes are made to the way we use energy, the way we live and
work will have to change, and the lifestyle we take for granted may not be
enjoyed by our children and grandchildren.
3. According to the CSIRO, Australia is hotter and drier than it was 100 years ago,
with less water per capita, more bush fires and more extreme weather events.
4. According to the Intergovernmental Panel on Climate Change, Australia is very
vulnerable to climate change. A 2°C increase in global temperature would
severely damage the Great Barrier Reef, Kakadu's wetlands and the alpine
regions of south eastern Australia, as well as threaten low lying coastal areas.
5. Governments around the world have started planning for these changes; acting
to minimise the magnitude and rate of change by reducing greenhouse gas
emissions and adapting to future climate change that is now unavoidable.
Responsible Governments are:
· Investing in climate change science to improve our understanding of future
climate;
· Working in partnership with the community and businesses to deliver climate
change solutions;
· Actively shifting their economies to succeed in a carbon constrained world
where greenhouse gas emissions are increasingly restricted; and
· Working multilaterally with other Governments to reduce greenhouse
pollution and preparing for a future under a changing climate, while respecting
their common but differentiated responsibilities and capabilities.
6. Recognising the need to stabilise greenhouse gas concentrations in the
atmosphere and the absolute importance of united global action to meet this
challenge, the United Nations Framework Convention on Climate Change was
agreed to in 1992. Since then the Parties have continued to negotiate and the
third session of these negotiations resulted in the adoption of the Kyoto Protocol
to the Convention in December 1997.
7. The Kyoto Protocol signifies an important change in the attitude of nations and
shows
they are serious about addressing climate change. It represents a global response
to
a global problem.
Features of the Kyoto Protocol
8. The Kyoto Protocol has four major features:
· Binding targets on greenhouse-gas emissions for all developed countries and for
those countries in transition to a market economy. These targets range from -8 per
cent to +10 per cent of the countries' 1990 emissions levels by 2008-2012. For
example, most of the European Union will have to cut their emissions by 8%, New
Zealand, Russia and Ukraine must keep their emissions stable and Australia would be
able increase its emissions by 8%. Of the industrialised nations, only Australia and
Iceland have a target which permits an increase from 1990 levels. As well as having a
low emission target, a special clause was included for Australia's benefit so cuts in
land-clearing would be counted.
· Flexibility and market based mechanisms to assist countries to meet the targets.
For example, countries may partially compensate for their emissions by increasing
"sinks" (forests, which remove carbon dioxide from the atmosphere). The sinks can
be on their own territory or in other countries, or they may pay for foreign projects
that result in greenhouse-gas reductions. To ensure the flexibility and economic
efficiency of making emission cuts, mechanisms such as emissions trading have been
established so parties may trade units of their emissions allowances with other Parties.
· Project based mechanisms, known as Joint Implementation and Clean
Development Mechanisms, through which industrialised countries can partly meet
their emissions targets through "credits" earned by sponsoring greenhouse gas-
reducing projects. In the case of Clean Development Mechanism projects, such
activities occur in developing countries.
· It has widespread international support and will provide the architecture and
reporting, monitoring and verifying infrastructure for future international agreements
on climate change. Countries such as Canada, Japan, New Zealand and every country
in Europe, are all adopting domestic measures to implement the Kyoto Protocol and
countries like India and China have developed the necessary frameworks for the
pursuit of Clean Development Mechanisms.
9. The Kyoto Protocol became legally binding on 16 February 2005.
10. After gaining significant concessions, Australia signed the Kyoto Protocol on
29 April 1998. However, for purely political reasons, Australia is now one of
only two developed countries not to have ratified it. The other is the United
States.
11. On 27 May 2007, 271 Australian university economists, including 75
economics professors, called on the Australian Government to stop
undermining international efforts to tackle climate change and to ratify the
Kyoto Protocol without delay.
12. The Australian university economists stated:
· The Intergovernmental Panel on Climate Change has determined that
warming
of the world's climate is `unequivocal' and that it is almost certainly due
to
human activity. It expects that further warming will occur, leading to sea-
level
rise and changes in weather patterns most of which will be adverse. This
finding is supported by the leading scientific bodies of the world,
including the
CSIRO and the Australian Academy of Science.
· The IPCC and the CSIRO anticipate that Australia will be seriously
affected
by climate change including more heat waves, fires of greater intensity,
reduced soil moisture, declining water security, greater risks to life and
property from sea-level rise and storms, risks to major infrastructure from
extreme events and substantial impacts on agriculture and forestry.
· Global climate change carries with it serious environmental, economic and
social risks and preventive steps are urgently needed. Policy measures are
available that would greatly reduce emissions of carbon dioxide and other
greenhouse gases at modest economic cost. Credible estimates suggest that
a
50% emissions reduction is achievable for less than one year's economic
growth.
· Economic instruments - such as carbon taxes or emissions trading -
should be
an important part of a comprehensive climate change policy. Revenue
raised
from carbon taxes or the sale of permits can be used to reduce taxes
elsewhere
in the economy.
· A major change in our emissions-related activities can be achieved over an
extended period of transition. Australia has shown over the last two
decades
that it can manage significant change without major negative
consequences for
incomes or employment and, in fact, with change being a stimulus to
improving innovation in the longer term.
· Since developed countries are responsible for around 75% of increased
greenhouse gases in the atmosphere, and are in a stronger economic
position,
they should take the lead in cutting emissions. It is fair that developing
countries should begin reducing their emissions only when developed
countries, including Australia, have led the way.
· The Kyoto Protocol represents the first step towards a major international
effort to deal with climate change in the long term. The refusal by
Australia
and the United States to ratify the Kyoto Protocol is undermining global
efforts to tackle climate change.
· In addition to demonstrating international leadership befitting one of the
richest countries in the world, it is in Australia's economic interests to join
the
primary international effort to cut emissions and we call on the Australian
Government to ratify the Kyoto Protocol without delay. This should be
complemented by domestic initiatives dedicated to emissions reduction.
Object of the Bill
11. The object of the Bill is to ensure Australia meets its international obligations
under the United Nations Framework Convention on Climate Change and the
Kyoto Protocol.
12. The Bill requires the Australian Government to take the necessary steps to
ratify the Kyoto Protocol within 60 days of the commencement of the Act. It
also:
· enables Australia to enjoy the benefits that flow from meeting our
international obligations under the Kyoto Protocol;
· ensures Australia meets the target it agreed to when negotiating the Kyoto
Protocol at least cost to the economy (linking with the global carbon market
will
ensure least cost compliance);
· sends a clear message to all Australians that we must start working actively on
climate change because it is an issue affecting Australia's future prosperity;
· signals to business we are taking a planned approach to shift the economy to a
low carbon growth trajectory, and ensures the quest for low carbon growth
becomes a significant driver of innovation; and
· allows Australia to play an active role in the 3rd Meeting of the Parties to the
Kyoto Protocol, which is being held in Bali in December 2007.
13. The Government's failure to ratify the Kyoto Protocol means Australian
businesses are excluded from lucrative international economic opportunities
presented by global carbon markets and the developing renewable energy
technology markets.
14. Given the Australian Government continues to state Australia will meet the
emission reduction target for the period 2008 - 2012, it is illogical for
Australia not to ratify the Kyoto Protocol and place Australian companies and
our economy in such a disadvantageous position.
FINANCIAL IMPACT STATEMENT
Ratification of the Kyoto Protocol would have no direct financial impacts on the
Commonwealth budget; however, ratification would stimulate significant and
immediate benefits to Australian businesses by enabling their participation in
emissions trading and renewable energy technology markets.
Avoiding Dangerous Climate Change (Kyoto Protocol Ratification) Bill 2007
NOTES ON INDIVIDUAL CLAUSES
Clause 1 Short title
1. The short title by which this Act may be cited is Avoiding Dangerous Climate
Change (Kyoto Protocol Ratification) Act 2006.
Clause 2 Commencement
2. This clause provides that the Act commences 30 days after the day on which it
receives the Royal Assent.
Clause 3 Object of the Act
3. This clause provides that the object of the act is to enable Australia to meet its
international obligations under the United Nations Framework Convention on
Climate Change by ratifying the Koyoto Protocol to the Convention.
Clause 4 Interpretation
4. This clause defines certain terms that are used in the Act.
Clause 5 This Act binds the Crown
5. This clause provides that, if the bill is passed, the Crown is bound by its
provisions.
Clause 6 Ratification
6. This clause requires the Government of the Commonwealth of Australia to deposit
a legal document of ratification of the Kyoto Protocol with the United Nations
within 60 days of the commencement of the Act.
Clause 7 National Climate Change Action Plan
7. Under this clause the Minister will be required to have a National Climate Change
Action Plan prepared. The plan must set out a detailed implementation
strategy to meet Australia's obligations under Article 2 of the Protocol, so
Australia will achieve its quantified emission limitation and reduction
commitments under Article 3 of the Protocol.
Clause 8 The Kyoto Target
8. This clause requires the Minister to ensure that Australia's aggregate human
induced carbon dioxide equivalent emissions in the first commitment period,
2008-2012, do not exceed 108% of the 1990 levels.
Clause 9 Annual Greenhouse Gas Inventory and National Communication
9. This clause requires the Minister to establish a national system for estimating
human induced emissions of greenhouse gases not controlled by the Montreal
Protocol, as required by Article 5 and as accepted by the Intergovernmental
Panel on climate charge. The clause also requires the Minister to publish the
annual inventory of greenhouse gas emissions, and to submit it for review by
expert review teams, pursuant to decisions of the Conference of Parties, as set
out in Article 8 of the Protocol. Finally, the clause requires the Minister to
submit an Annual Communication in accordance with article 7, and subject to
subsequent decisions by the Conference of the Parties.
Clause 10 Framework for involvement in international trading schemes
10. This clause requires the Minister to develop a means by which the international
transfer of emission reduction units can be facilitated. Such a mechanism
would include means by which units could be transferred as a result of
reduced human induced emissions or enhanced human induced removals by
sinks of greenhouse gases. The mechanism would also allow for the transfer of
emission reduction units under the clean development mechanisms. The clause
would also require the Minister to establish a registry of emission units to
ensure the accurate accounting for and recording of units and their transfer,
and the accurate, transparent and efficient exchange of information between
Australia and overseas registries.
1
CSIRO consultancy report for the NSW Greenhouse Office, November 2004.
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