DIRECT ACTION: IF, BUT, MAYBE

Media Release

Date:  18 February 2014

A report released today by Australian carbon market research firm Reputex exposes the difficulties Direct Action will have achieving its goals due to the complexity of designing its key elements.

“Direct Action has been revealed for the con job it is,” Shadow Minister for Climate Change Mark Butler said.

“Labor does not believe that polluting should be profitable, or that the Australian taxpayer should fork out to cover the cost of big polluters.”

The report points out the following:

• Under Labor policy the polluters pay for the right to pollute
• Under the Tony Abbotts policy the taxpayer pays the big polluters to pollute
• Direct Action fails to achieve enough emissions reduction for Australia to meet its Kyoto commitment

The report identifies two key elements that are most critical to Direct Action meeting its emissions targets.

One of these is the setting of baselines, the element most widely criticised by stakeholders. Industry experts have pointed to the complexity of doing this fairly and properly and raised concerns about additional regulatory burden.

The other key element is the establishment of a secondary market to offset emissions growth.

“This has not been even canvassed in any meaningful way in the Government’s Green Paper,” Mr Butler said.

The government promised to have legislation in place within 150 days of coming into government – that was 15 February.

"Economists and scientists believe Direct Action will be costly and ineffective," Mr Butler said. 

“With only four months to go before they intend to roll this con job out, let’s hope the Government can formulate a policy which actually ensures we act to address climate change."