A Central Bank to manage emissions?
A prominent Australian economist, Ross Garnaut, has called for an independent central agency to manage emissions trading in Australia, according to the Sydney Morning Herald.
“Ross Garnaut warned yesterday that climate change was a “diabolical policy problem” and that Australia stood to be damaged more than any other developed country because of its already hot, changeable climate and proximity to developing countries expected to be hit hard by global warming.
“Business as usual is carrying the world towards high risks of dangerous climate change faster than seemed to be the case a short while ago. The need for an effective policy response is more urgent than we thought,” he said.
Professor Garnaut was commissioned by state and territory governments to examine the effect of climate change on the economy earlier this year.
As opposition leader, Kevin Rudd promised a government under his leadership would join the review, which was inspired by a landmark report by Sir Nicholas Stern for the British Government last year.
Professor Garnaut yesterday echoed Sir Nicholas’s criticism that the international economy had failed to cope with climate change, saying “the over-exploitation of the atmosphere as a global commons is the primary climate change market failure but it is by no means the only one”.
Climate change was a key element of Mr Rudd’s campaign, and he now faces the difficult job of making sure Australia’s high levels of greenhouse gas emissions decrease without hurting the economy.”
Perhaps an independent agency of this type working in Europe could have designed and managed the ETS so as to keep prices higher, unlike the debacle we have currently.