On 4th Attempt, Coal-Fired Australia Passes Carbon Tax
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Climate activists have hailed the law as a hopeful sign that even one of the world's most carbon-intensive economies can commit to a different future. But the work is only beginning. In just one indication of the long road ahead, an International Energy Agency fuel economy report last week ranked Australia's new car fleet as worst among the world's major economies in carbon emissions per kilometer. Emblematic of Australia's failure to invest in energy efficiency, it has no binding automobile fuel economy standards. (Related Pictures: "A Rare Look Inside Carmakers' Drive for 55 MPG"
Historically, only the United States has surpassed Australia in its appetite for powerful engines. And this year, as U.S. drivers have begun flocking to smaller, more efficient cars, Australia has seen an SUV boom. SUVs made up 28 percent of Australia's new vehicle sales in August, compared to just below 25 percent a year earlier.
Joshua Meltzer, a former Australian diplomat who now is a fellow at the Washington, D.C.-based Brookings Institute, says his country, much like the United States and Canada, must now grapple with the economy it has built since the Industrial Revolution around its huge fossil fuel deposits. "You have greater urban sprawl, cheaper fuel, greater use of cars, less use of public transportation, larger houses," than in Europe or Japan, Meltzer said. "At the end of the day," he added, achieving ambitious emission targets "is going to involve some very significant changes in how people live their lives."
Carbon Tax and Permits
Australia passed the Clean Energy Future Package in its fourth attempt at comprehensive climate legislation. Enacted in July, the package establishes a goal of reducing national emissions to 5 percent below 2000 levels by 2020, and 80 percent below 2000 levels by 2050. And it levies a carbon tax on its 300 largest polluting companies, as well as providing incentives for renewable energy and efficiency improvements. Australia's scheme covers more sectors, and more of the country's total emissions, than Europe's long-standing cap-and-trade system. Analysts say California's program, set to go into effect on Jan. 1, has a similar sweep; Australia and California are reportedly in talks to link their carbon markets.
Australia has sought to give its energy-intensive industries a helping hand in meeting new requirements. The first carbon permits, issued free of charge this week to aluminum producer Alcoa and Queensland Nitrates, are part of the government's $8.9 billion program to help certain businesses—those facing global competition—cope with cap-and-trade.
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http://news.nationalgeographic.com/news/energy/2012/10/121005-australia-carbon-tax/