Senate debates

Friday, 25 November 2011

Questions on Notice

Carbon Pricing (Question No. 1269)

Photo of Ian MacdonaldIan Macdonald (Queensland, Liberal Party, Shadow Parliamentary Secretary for Northern and Remote Australia) Share this | | Hansard source

asked the Minister representing the Minister for Climate Change and Energy Efficiency, upon notice, on 6 October 2011:

(1) What percentage of the atmosphere is composed of carbon dioxide.

(2) What percentage of the total carbon dioxide is of human-related origin.

(3) What percentage of the human-related carbon dioxide is sourced from Australia.

(4) How much global warming, in degrees Celsius, will be averted should Australia reduce its carbon dioxide emissions by 5 per cent by 2020.

(5) What will be the total cost by 2020, and the cost per family of four persons, the government policies that are intended to effect the 5 per cent reduction.

Photo of Penny WongPenny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | | Hansard source

The Minister for Climate Change and Energy Efficiency has provided the following answer to the honourable senator's question:

(1) Climate scientists advise that carbon dioxide (CO2) in the atmosphere is currently approximately 390 parts per million (ppm). CO2 levels are now about 40 per cent higher than pre-industrial levels and are well beyond the levels of the last 800,000 years of between 172 and 300 ppm.

(2) Accumulation of human produced CO2 has resulted in humans being responsible for 28 per cent of the CO2 currently in the atmosphere.

(3) Australia is one of the world's major emitters. In 2005 – the most recent year for which comprehensive data is available for both developed and developing countries – Australia's emissions of all greenhouse gases represented around 1.5 per cent of the global total. This places Australia in the top 20 highest emitting countries in the world, with emissions similar to the United Kingdom, Italy, France and Spain. In addition to being one of the world's major emitters, Australia is also one of the highest per capita emitters.

(4) Australia's emissions reduction efforts should be considered in a global context. Australia is committed to playing a full, fair and constructive part in building global solutions to climate change. An effective global solution requires action from all major emitters.

Two countries contribute up to 35 per cent of global emissions: the United States and China. However, 19 countries are responsible for the next 40 per cent of emissions – individually emitting between 1 and 5 per cent of global emissions. Action by these 19 major emitters, including Australia with 1.5 per cent of global emissions, must be part of an effective global response.

The Australian Government's Clean Energy Future plan will cut pollution by at least 5 per cent compared with 2000 levels by 2020. This will require cutting net expected pollution based on business as usual projections by at least 23 per cent in 2020.

Under the United Nations climate change negotiations, countries have agreed the goal to limit global average temperature rise to below 2 degrees celcius above pre industrial levels.

The Government is committed to taking effective action, as part of an overall global effort to reduce greenhouse gas emissions, to meet the 2 degree goal. Without effective action to reduce emissions scientists predict we could see temperatures rise up to 6.4 degrees Celsius by the end of this century. This could mean that average sea levels rise by up to a metre and the world's oceans could become too warm and acidic to support coral reefs.

(5) The Government has released detailed tables showing the cost of the scheme over the forward estimates period. They show that there is an upfront cost, but after that the scheme is broadly budget neutral. The Government has not released costings beyond the forward estimates period, which is consistent with Treasury advice and the Charter of Budget Honesty.

The cost of the scheme on a household depends on the household's particular circumstances such as the size of their house, their energy use and how well insulated the house is.

On average, households will see cost increases of $9.90 per week, including $3.30 per week on the average electricity bill and $1.50 per week on the average gas bill.

Nine out of ten households will be provided with assistance to help meet the expected average impact of a carbon price on their cost of living through tax cuts, increases to government payments or a combination of these. On average, households will receive $10.10 per week in assistance.

For example:

      For further detail on household assistance, including further cameo examples, please see the Clean Energy Future website at: www.cleanenergyfuture.gov.au.