National Business Group calls for immediate action on climate change

Sydney: In his first act as the newly appointed Chairman of the National Business Leaders Forum on Sustainable Development (NBLF), Rod Leaver, CEO of Lend Lease Australia has encouraged Australian business leaders to join the growing call to action to establish a price on carbon.

"Australian business needs certainty to continue to invest and develop our economy. Establishing a price on carbon now will provide that certainty and allow business to plan effectively to operate in a carbon constrained world," he said.

"A price on carbon will ensure Australia is well positioned to face the future and while both political parties vie for office, we have an opportunity to firmly place this issue back on the agenda. I am urging other business leaders in Australia to speak out and show their support for the introduction of an emissions trading scheme within the next year," Mr Leaver said.

According to Molly Harriss Olson, the founder and convenor of the NBLF, the group has been working actively to draw out the substantial business support for a sound economic approach to climate change - one which was supported this week by former World Bank president and economist, Nicholas Stern.

"Since the NBLF Forum in May, we have developed a detailed proposition for government calling for a price on carbon. Australia needs to start planning now for the next major global economic growth opportunity---which includes technologies and services that increase carbon productivity ," she said.

Published on the NBLF's website, "A Call for a Carbon Price and a Comprehensive Plan of Action on Climate Change" details 23 key reform actions including a 25% greenhouse gas cut by 2020 and a 90% cut by 2050. www.nblf.com.au

"This message was underscored by Lord Nicholas Stern's address at the National Press Club on Wednesday 1 September - Australia cannot continue to rely on the current resources boom as a means of creating wealth indefinitely," Mr Leaver said.

During his address, Lord Stern made it clear that the first step in the process of moving the Australian economy onto this massive global growth platform is a robust carbon price. He also said that the time to take advantage of this opportunity is now and not when the rest of the world has signed on to a global climate change agreement.

In support of this position, Lord Stern also said that Britain and Norway both reaped huge economic benefits from the development of their North Sea oil and gas resources but Britain spent most of this wealth and is now a large net importer of energy. Norway transferred much of its oil and gas revenue into a national fund and is using it to move into global green economy opportunities.

"Think of a robust carbon price as a passport to future economic growth with the stabilization of the global climate system as a gigantic co-benefit," Ms Harriss Olson said.

The NBLF statement, adopted by over 200 delegates at the National Business Leader's Forum on Sustainable Development says:
"We are deeply concerned that without a price on carbon, significant business and economic opportunities will be lost as this policy vacuum creates significant investment uncertainty. "

The statement goes on to say that: "the lack of a renewable energy policy is putting investment in large scale renewable energy projects at risk" citing AGL Energy, one of the biggest wind-farm investors in Australia which recently warned that if the government does not succeed this month in passing its planned overhaul of the renewable energy target (RET) legislation, there would be "very serious consequences" for investment in large-scale renewable energy projects.

"Since October 2009, 154 new policy announcements and measures have been made globally and more than 100 advanced, emerging and developing countries have submitted national pledges to tackle climate pollution with Brazil and China leading the way. Countries like Germany and the UK committing to strong 2020 targets and climate change policy reform, undermines the case that Australia should "wait" for international action on climate change," she said.

For further information/interview contact:
Rod Leaver, CEO, Lend Lease Australia and Chairman, NBLFSD: +61 2 9277 2001/0414 532 837; rod.leaver@lendlease.com.au
Molly Harriss Olson, Convenor, NBLFSD: + 61 2 6236 8437/0409 368436; molly.harrissolson@ecofutures.com

Additional commentary is available from:
Dr John Hewson - Chairman, Global DC 0412 261 463
Nathan Fabian - CEO, Investor Group on Climate Change 0412 128 486
Fiona Wain - CEO, Environment Business Australia 02 9358 1800;eba@environmentbusiness.com.au
John Connor - CEO, The Climate Institute +61 2 8239 6299/0413 968 475; jconnor@climateinstitute.org.au
Michael Mollitor - CEO, Carbon Shift 0416 398 604; mmolitor@carbonshift.com
Lord Nicholas Stern +44 20 7955 7871

A call for a carbon price and a comprehensive plan of action on climate change - 23 recommendations

The NBLF Forum has made 23 key reform recommendations (see full report attached) or summary below or at www.nblf.com.au :
1. Reverse the rise of Australian greenhouse gas pollution by 2013, and commit to at least 25 per cent unilateral greenhouse gas cuts by 2020, and 90 percent unilateral cuts by 2050. Further develop and implement climate change policies that will enable such targets to be achieved.
2. Put a price on carbon soon through either a carbon levy/tax or an emissions trading scheme (ETS) with an interim carbon levy.
3. Use revenue from a carbon levy/tax or the sale of permits in an emissions trading scheme to aid transition. e.g. through research and development in renewable energy, energy efficiency, soil carbon, and innovation commercialisation, as well as retrofitting industrial plant and commercial operations.
4. Implement appropriate and cost effective policy measures to address international competitiveness issues for genuinely high emitting, trade exposed businesses as outlined above.
5. Empower and mobilise households, local and state governments and businesses to take voluntary abatement action that goes beyond compliance with Kyoto and ETS caps by immediately retiring Kyoto permits and (if introduced) Australian ETS permits to match each tonne of additional voluntary abatement. This will ensure that their voluntary purchases of GreenPower and appropriate domestic offsets count towards reducing Australian and aggregate global emissions.
6. Fund the development of transformative short and long term low carbon growth plans for both industry sectors and also regions of Australia modelled on the Low Carbon Growth Plan for Australia by Climate Works Australia.
7. Better co-ordinate and invest further in education and training to build community consensus for the need for action and underpin the achievement of a low carbon green economy and achieve climatechange adaptation as cost effectively as possible.
8. Embrace technology neutrality for carbon capture and storage by amending the definition of carbon capture and storage (CCS) to be technology neutral so that soil, terrestrial and other biological carbon use and storage is also recognised. - Incentivise every farmer, within the Voluntary Carbon Market (governed by the National Carbon Offset Standard (NCOS), to immediately adopt farm practices that build soil carbon.
9. Undertake tax shifting - reduce non-wage labour costs (payroll tax rates) to compensate business for a carbon levy/tax in an economically efficient way that creates jobs and boosts the economy. The following recommendations (8-13, 16 and 22) support and are in line with the key recommendations from "The Energy Efficiency Roundtable Communiqué" already formally supported by over 40 Australian organisations.
10. Ensure support for low income and vulnerable households as we move to put a price on climate pollution and experience greater climate change impacts. 11. Set mandatory "National Energy Efficiency Targets" for 2020 and beyond with clear annual targets of at least 2-4 per cent to have Australia at the forefront of energy efficiency improvements.
12. Undertake reform in the National Electricity Market to foster greater investment in renewable energy, cogeneration and energy efficiency. Strengthen institutional support for the 'Smart Grid'.
13. Create strong incentives and regulatory drivers for energy efficiency in industry.
14. Create stronger incentives and regulatory drivers for "energy efficiency" retrofitting of all commercial, government and residential buildings.
15. Expand minimum energy performance standards to cover industrial and cooking equipment.
16. Increase the mandatory renewable target to 25% and take a national approach to feed in tariffs.
17. Value-add to Australian exports using renewable energy.
18. Reduce oil dependence through improved fuel efficiency standards and sustainable transport policies.
19. Implement the recommendations from the Henry Tax Review for congestion taxes.
20. In the 2011 budget, begin phase out of perverse fossil fuel subsides as per G20 commitments. The last investigation into this estimated that Australia spends in the order of AUD$6.5 billion annually on perverse subsidies, i.e. subsidies which lead to more greenhouse gas pollution
21. To strengthen global trust to help achieve a global climate change agreement, build on the announcements made in the 2010-11 budget by committing to increase Australia's total contribution to international fast start financing to USD600 million between 2010 and 2012.
22. Invest and encourage business to invest, with appropriate incentives, in biodiversity and ecosystem resilience to gain significant climate change, economic and environmental co-benefits. Lead by example and support regional efforts to reduce emissions from deforestation and forest degradation (REDD). 23. Take a whole of government approach to develop and implement climate change adaptation policy to avoid duplication and utilise existing institutions, policy mechanisms and expertise.