Penny Wong (SA, Australian Labor Party, Minister for Climate Change and Water) Share this | Hansard source

What the scheme will ensure is that Australia’s contribution to climate change lessens. Rather than the situation that occurs now, where Australia’s contribution is worsening, we will be reducing that contribution. It is the case—and we have been absolutely clear about this—that we want a scheme that is open and where we can trade on world markets. What I have indicated is that our modelling suggests that the majority of abatement effort will still occur domestically. I have previously indicated that the analysis by the department suggests that, if the scheme is passed, domestic emissions are most likely to peak around or before 2012-13 and then be stable or fall to 2020.

But let us remember the context: domestic emissions would rise—even with the renewable energy target—to 120 per cent of 2000 levels by 2020 in the absence of this scheme being passed. So we are on a trajectory that is going up. This scheme will ensure that we reduce our emissions domestically but also—and, as I said, we make no apology for this—that Australian firms contribute to reducing emissions worldwide. Given this is a global issue, we think that is a sensible way forward.