Tuesday, December 6, 2011
The Unholy Trinity of Stupidity!
Following the failure of a meaningful Durban agreement and in an effort to save face Australia, New Zealand and the EU have formalised negotiations for swapping paper carbon credits although I understand the mafia will have to ratify any EU decision given the amount of the market they control. Greg Combet is to have further talks in an indaba which is Zulu for "secret men's business" , a term Greg would be familiar with..The coming Aussie ETS is the ALP version of a free market with price controls to prevent the carbon indulgences becoming worthless when people realise their intrinsic value. Greg Combet is delusional when he says expanding trade in these bits of paper will be "good for economic growth" showing why Labor is regarded so poorly as an economic manager.
Climate Change Minister Greg Combet arrived in the South African city yesterday and held his first meetings with senior officials from the US and Japan.
Mr Combet will make a statement on Australia's position on a future global agreement when the leadership round starts on Wednesday. He is also expected to take a role in a special series of high-level but less formal discussions, called an indaba, established by the South African hosts.
Whether or not progress is made on an international deal, Australia is committed to the establishment of a national carbon trading market that it hopes to link with those of other countries.
Under the government's package a fixed carbon price of $23 a tonne will be imposed from July 1 next year, rising at 2.5 per cent a year in real terms for three years. In 2015 the package will convert to an emissions trading scheme with a floating price.
A floor price of $15 and a ceiling price, $20 above the expected international price, will be imposed to prevent volatility.
After meeting EU Climate Change commissioner Conne Hedegaard yesterday, Mr Combet released the terms of reference for top-level talks next year on linking the two carbon markets.
"Expanding international carbon markets is good for the environment and good for economic growth," Mr Combet said.