The BCA believes that global warming is a global problem and will only be solved with a global solution. What is required is an international response that includes all emitters.

In the absence of such an international response, Australia must ensure its actions do not unnecessarily impact on its economy and living conditions.

A well-designed emissions trading scheme (ETS) will ensure Australia can manage its economic growth while contributing to a reduction in global emissions. Such a scheme must enable emissions reductions to be achieved at least cost to the economy, maintain the reliability and viability of the domestic electricity industry, and maintain the competitiveness of Australia’s industries in the absence of a global price on carbon. And it must be capable of being linked to international schemes.

A poorly designed ETS means high economic and social costs for Australia with no environmental gain.

In April 2007 the BCA released its Strategic Framework for Emissions Reduction, which outlined the BCA policy position on climate change. The framework identified the need to take a risk management approach and to introduce a linkable emissions trading scheme. Further detail on the framework was outlined in the BCA publication Setting Achievable Emissions Targets for Australia (May 2007).

In August 2008 the BCA released Modelling Success: Designing an ETS that Works, the first hard data on what will happen to real companies in Australia unless some modifications are made to the federal government’s proposed Carbon Pollution Reduction Scheme.

In December 2008 the federal government released its white paper on emissions trading. You can read the BCA President’s statement in response to the white paper and the emissions reduction targets in the white paper.

For business to make the necessary investments to enable the transition to a low-emissions economy, it must have regulatory and policy certainty.

The BCA remains committed to working with both sides of politics to ensure workable policies are put in place that assist Australia to transition to a low-emissions economy.

BCA Secretariat contact: Maria Tarrant, Director Policy