NSW govt’s greenhouse scheme rewarding bad behaviour

Commenting on a story on page 5 of today’s Sydney Morning Herald (7 August 2007) Dr Kaye said: “NSW Energy Minister Ian Macdonald’s boast that the scheme reduced emissions by 20 million tonnes last year is nonsense.

“If the Iemma government were serious about saving the climate they would stop GGAS rewarding generators who increase their emissions or burn highly polluting coal.

“It is absurd that the Snowy Scheme was able to continue to make money from the greenhouse trading scheme even when it switched from low emissions hydro to much more polluting gas which was not offsetting coal.

“It is outrageous that coal fired power stations that pump out millions of tonnes of carbon dioxide are allowed to be seen as clean sources and sell greenhouse credits.

“It is very unfair and inefficient that generators are being rewarded for improvements they would do anyway, regardless of the scheme.

“GGAS creates the impression that this state is doing a lot to reduce emissions. This becomes a dangerous illusion when polluting behaviour is rewarded.

“The Iemma government’s scheme fails to push the envelope on emissions. It rewards business as usual and sets a very low price on emissions.  

“The NSW scheme is a frightening example of what can go wrong in a poorly designed emissions trading market.  It is a moral lesson for the national market that is supposed to be running by 2011.

“The Iemma government’s GGAS is in urgent need of repair to stop coal fired power stations and gas peak generators from earning greenhouse credits when they clearly have done nothing to reduce total emissions.

“Minister Macdonald claims that his emissions trading scheme is as good as it gets. The Greens say it has a long way to go,” Dr Kaye said.