Greg Combet (Charlton, Australian Labor Party, Minister for Climate Change and Energy Efficiency) Share this | Hansard source

I thank the member for Cunningham for her question. As we know, climate change is a global problem, an international problem, and any solution to climate change is going to have to involve coordination and cooperation within the international community. There is, after all, only one atmosphere and a reduction in pollution anywhere in the world has the same environmental benefit. The most practical way that nations can cooperate to tackle climate change is through the development of credible international carbon markets, because through these markets countries can take advantage of the lowest cost pollution cuts that are available. That is what the government's carbon price mechanism will achieve.

Former Prime Minister John Howard understood this extremely well. The coalition's emissions trading policy that he took to the 2007 election clearly articulated this point. It said:

The Australian scheme will be designed to maximise the prospect of linkages with other schemes, and with policy-based arrangements such as offsets, where offshore emissions-reducing activities could be counted by Australian firms in determining their net emissions.

That was coalition policy and an important piece of economic policy because, through international linking of emissions trading schemes, we can establish a common carbon price between our economy and that of our trading partners over time thereby ensuring that carbon pricing does not disadvantage our industries and our businesses.

The opposition's policy that we should not link with international carbon markets, that we should not allow Australian businesses to purchase carbon credits overseas, would have serious economic consequences. It would more than double the cost of cutting pollution in our own economy to meet emissions reduction targets. This would put Australian businesses at an extreme competitive disadvantage with those overseas. Importantly, economic opportunities for farmers, foresters and other land managers for exporting carbon credits would also be lost. One would imagine that the National Party would have an interest in such an issue. Little wonder that the business community has strongly argued for access to international carbon markets to reduce the cost of emissions reductions. Little wonder that business leaders are rolling their eyes at the economic capacity of the coalition under the member for Warringah's leadership.

The opposition's policy is economically reckless. It is economic xenophobia. It is sending the signal—which it intends to do, one assumes—that it is somehow dubious to be trading with foreigners. It is typical dog whistle politics from the member for Warringah. It trashes commitments that have existed on both sides of this place to economic liberalisation and open trade. It is a white carbon policy on the part of the Leader of the Opposition. What would be next? Do we stop foreign trade? Do we stop trading in the dollar? Do we ban international trade?

See this speech in context