Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

asked the Minister representing the Treasurer, upon notice, on 18 August 2011:

With reference to the Treasury Carbon Tax modelling, Strong growth, low pollution: Modelling a carbon price:

(1) Why is there a major step down in estimated global annual emissions in 2012-13 in Chart 1.1 on p. 4 of the 'Overview', even when this is viewed as an 'equilibrium' projection.

(2) Specifically, what are the changes between 2011-12 and 2012-13 in global emissions-reduction settings or commitments that account for this fall.

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

The Treasurer has provided the following answer to the honourable senator's question:

(1) The projected step down in global emissions reflects expanding international mitigation action. The Global Trade and Environmental Model (GTEM), which was used to produce the international modelling results in the Strong growth, low pollution (SGLP) report, assumes labour and capital adjust quickly across industries, and it does not capture as many of the transition issues to a policy change as would be experienced in the real world, as acknowledged in the SGLP report (page 27).

(2) Individual countries are assumed to increase their implementation of policy action towards meeting their 2020 pledges in 2012 13.