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

I think it is important to remember that just because another country may not include a facility or a type of emissions within their scheme does not mean they do not achieve emissions reductions in other ways. Europe has a much narrower scheme but requires, via regulation and other policy mechanisms, reductions outside of the scheme. So it is the case, for example, that in Europe agricultural emissions are not included, and I believe waste water emissions are not included. But the policy position within the EU scheme is, I think, that they want a 10 per cent reduction in the non-covered sectors by 2020.

We have taken a policy position, consistent with what we took to the election, that says we believe broader coverage of the scheme is more efficient. It means that a business, rather than simply being regulated, can achieve its reductions in emissions at the lowest cost by working out the best way for that firm to reduce its emissions. So, as I said, in Europe those matters may be out but there is a requirement for a 10 per cent reduction by 2020. I thought it might be useful also, given some of the contributions which are being made by senators, to remind them of what was said on 17 July 2007 by Prime Minister Howard:

I will also be announcing a ‘cap and trade’ emissions trading system that will help Australia substantially lower our domestic greenhouse gas emissions at the lowest cost. Stabilising atmospheric concentrations of greenhouse gases will be difficult, but not impossible.

He then went on to say:

Australia will more than play its part to address climate change, but … in a … balanced way in full knowledge of the economic consequences for our nation.

I remind them of the policy with which they went to the last election—it is baby blue, titled The coalition government: election 2007 policy, with Mr Costello, Mr Howard and Mr Vaile on the front cover. Page 2 reads:

A re-elected Coalition Government will:

               …            …            …

• establish an emissions trading system …