Sydney - Wednesday - March 14: (RWE Australian Business News) -...

Sydney - Wednesday - March 14: (RWE Australian Business News) -
The Business Council of Australia has outlined a series of principles
around a 'cap and trade' scheme to tackle greenhouse emissions as part
of a framework which it believes can provide the foundation for an
integrated global solution to emissions reduction.
The Business Council's submission to the Prime Minister's
Emissions Trading Task Group reiterates the BCA's core position -
outlined by BCA president Mr Michael Chaney in November - that the only
effective and sustainable way to reduce emissions is through a
multifaceted approach which includes a global market-based scheme.
The submission also argues that, given a long-term solution to
climate change effectively involves the transition from a high-emission
to a low-emission global economy, no-one should be under any illusion
about the enormity of the task or the possibility of a quick fix.
As the submission outlines, the BCA supports the overall
direction of the task group's Terms of Reference, which seeks to achieve
a sustained balance between reducing emissions and preserving
Australia's economic advantages.

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A critical element of any response will be the protection of
Australia's trade-exposed industries until competitors face a similar
carbon price signal.
"The key challenge for Australia is to ensure our long-term
economic prosperity, as it will be the strength of the Australian
economy in the future - not its diminution - which will ensure Australia
is able to address the potential risks associated with climate change,"
the submission says.
The BCA argues that a clear and consistent set of principles to
reduce emissions can provide the basis for countries to 'link' their
national schemes into a global trading framework to reduce emissions.
"While there has been significant discussion of a single, global
market ... it is more realistic to plan for a set of linked national
schemes which allow for local economic conditions, but provide the basis
for trading emissions reduction and credits between each country."