Media release issued: Tuesday, 21 June 2011

A research paper highlighting key flaws with the current climate policy options has been released today by the Committee for Economic Development of Australia (CEDA).

CEDA Chief Executive Professor Stephen Martin said CEDA's climate policy perspective A Taxing Debate: The Forgotten Issues of Climate Policy lays out many unresolved issues and highlights alternatives to the current proposals for addressing climate change.

"CEDA supports climate change policy action but it needs to be well thought out. Unfortunately, the current debate seems locked in headlines, while critical questions remain unanswered," Professor Martin said.

"Many of the issues raised in this document were originally put on the table for discussion just prior to Copenhagen in 2009 and CEDA is taking the unprecedented step of re-releasing several research papers, along with new material, as part of this policy perspective because many of the issues have failed to be addressed.

"This document addresses issues such as consumption versus production based climate policy, the flaws of transitioning to an ETS, and how Australia can implement climate change policies that do not undermine the nation's international competitiveness.

"A consumption based carbon tax has not been seriously considered and it is a policy option that offers significant benefits over the current model that should be examined.

"There is no doubt that as the world responds to climate change, Australia needs to play a key role in this response. But until these issues are addressed and alternatives properly examine, the best course of action remains unknown, and that is what is at the heart of the problem with the current debate.

"While timely resolution of climate policy is important - and the uncertainty surrounding the current debate is a threat in itself to investment and our economy - so is getting it right.

"The wrong model could have serious consequences for Australia - right down the chain, impacting on industry, jobs and households.

"However, the right model could set Australia up as a global leader and maintain our standard of living now and in the future."

This policy perspective is part of ongoing work by CEDA on issues around climate change through an event series and through a major energy research paper due to be complete in April next year.

Day two of CEDA's annual State of the Nation conference is being held in Canberra today and Climate and Energy Policy will be a key topic.

For media inquiries or a copy of the CEDA report A taxing debate: The forgotten issues of climate policy, please contact:

Roxanne Punton
Communications Manager
Mobile: 0409 532 287
Email: roxanne.punton@ceda.com.au