History of International and Australian policy on climate change

Policy timeline

1979 First World Climate Conference

1988 Intergovernmental Panel on Climate Change (IPCC) established to assess technical climate change issues, drawing together input from thousands of scientists around the world

1989  Representatives from 68 industrialised countries agree that stabilisation of carbon dioxide emissions by industrialised countries should be achieved as soon as possible in the ‘Noordwijk Declaration’

1990 Second World Climate Conference
IPCC presents its first assessment report, providing broad scientific consensus that the possibility of climate change should be taken seriously

1992 United Nations Framework Convention on Climate Change (FCCC) signed in Rio de Janeiro by 155 countries, including Australia

Australia commits to provide a regularly updated national greenhouse gas inventory and reports on national policies and strategies for stabilising emissions

Council of Australian Governments (COAG) agrees on the National Greenhouse Response Strategy

1994 Framework Convention on Climate Change ratified by 50 countries, and comes into force as international law

1995 Intergovernmental Panel on Climate Change second assessment report released

1997 Development of Kyoto Protocol completed

Just prior to Kyoto, Australia launches a 5-year $180 million package of greenhouse initiatives and measures, including legislative mechanisms mandating that electricity generating companies source an additional 2% of power from renewable sources

Australia establishes the National Carbon Accounting System

1998 USA and Australia sign (but do not subsequently ratify) the Kyoto Protocol, which includes provisions for Australia to restrict emissions to 108% of 1990 levels by the end of the first commitment period (2008–2012)

Australian Greenhouse Office established and National Greenhouse Strategy developed, focussing on improving awareness and understanding, limiting greenhouse emissions and enhancing emission sink capacity, and developing adaptation responses

2001 IPCC third assessment report released

Australian Greenhouse Office releases a paper on Pathways and policies for the development of a national emissions trading system for Australia

2006  South Australian strategic plan for reducing greenhouse emissions released

2006  South Australia introduces a Climate Change and Greenhouse Emissions Reduction Bill 2006 into Parliament (including provisions for ‘voluntary offset programs’, the development of targets for ‘various sections of the State’s economy’ and the development of policies and programs for the reduction of greenhouse gas emissions)

Other documents prepared in 2006 include:

National Agriculture and Climate Change Action Plan for 2006–2009 — Australian Natural Resource Management Ministerial Council

National Climate Change Adaptation Framework — Council of Australian Governments (COAG)

Tackling Climate Change — South Australia’s Greenhouse Strategy

Possible Design for a National Greenhouse Gas Emissions Trading Scheme — National Emissions Trading Taskforce, Australian State and Territory Governments

2007 The three sections of the IPCC Fourth Assessment Report will be released in stages from February 2007

For further information regarding South Australian Government policy, please refer to:

Tackling Climate Change: South Australia’s Draft Greenhouse Strategy (2006)

The State Natural Resources Management Plan (2006)

Soil Conservation and Land Management Directions for the Agricultural Lands of South Australia (2004)

The State Food Plan (2004–2007) and industry plans

The Kyoto Protocol

Under the Kyoto Protocol, ‘Annex 1’ countries agreed to reduce overall global greenhouse emissions to 5.2% below 1990 levels by the end of the first commitment period (2008–2012). Signatory countries have differing targets (as set out in Annex B of the protocol), with the sum of the different targets producing a 5.2% global reduction. Mechanisms such as ‘emissions trading’, ‘clean development mechanisms’ and ‘joint implementation’ can be used to reduce emissions and Annex 1 countries can carry forward unused emissions allowances from one commitment period to the following period.

A Potential Greenhouse Gas Emission Trading Scheme

Greenhouse gas emissions trading has been suggested as an effective mechanism for reducing Australia’s emissions, probably by legislating to limit the total amount of greenhouse gases that may be produced by specified sectors and allowing companies within those sectors to buy and sell rights to emit greenhouse gases. Companies producing less emission (or less greenhouse gas) could sell their emission rights while companies producing more would have to buy extra rights to emit extra greenhouse gases. Companies that develop more ‘greenhouse friendly’ production systems would gain an advantage over others.

If an emissions trading scheme is introduced, the Australian Greenhouse Office recognises the need to address the following issues in the design of any such scheme:

• Accounting for emissions resulting from combustion, such as those from power stations and transport, is relatively straightforward, but accounting for other emissions sources, such as agriculture, (which comprises up to 35% of total emissions) can be much more complex.
  
• The costs of developing and running an emissions trading system (including administration, monitoring and reporting costs) needs to be minimised.
  
• A phasing-in period with transitional arrangements seems necessary for Australia’s energy intensive industries, but Australia is sensitive to any global reaction to this because of our large export trade (5).

For South Australian agriculture to be included in emissions trading on a non-voluntary basis, an emissions trading scheme would need to be developed (or an emissions trading scheme signed on to by Australia or South Australia) and legislation enacted, capping emissions in the agricultural sector.

The National Emissions Trading Task Force (2006) reported that recent modelling by McLennan Magasanik Associates estimates that the cost of emission permits would range from $5 to $35 per tonne of carbon dioxide emitted, depending on the level of the cap and the rate of development of emission reducing technologies.

Source: McLennan Magasanik Associates (2006). The Economic Impacts of a National Emissions Trading Scheme on Australia’s electricity markets,  http://www.emissionstrading.net.au/__data/assets/pdf_file/2019/Discussion_Paper_-_Ch_6_-_Estimated_impacts.pdf

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