CPRS defeated again

It came as no surprise last week that the Labor government’s Carbon Pollution Reduction Scheme (CPRS) was defeated for the second time in the Senate. Under the new coalition rule of Tony Abbott, only two liberal senators crossed the floor and voted with their opposition for the ETS legislation - they were Senators Sue Boyce and Judith Troeth. At 33 votes for to 41 against, their votes were not enough to pass the bill.

Clean Energy Council Chief Executive Matthew Warren said the defeat of the CPRS was a lost chance to start the transition to a low carbon economy.

“The amended CPRS was not perfect, but it was a start. Decarbonising the Australian economy is the single biggest policy transformation in modern history. Delay does not help reduce emissions, nor does it help business invest,” he said.

“If you continue to wait for the next computer model because it’s a bit better than the current one, you’ll never throw out your old typewriter.

“The defeat of this CPRS means we could now be two years behind where we need to be in our efforts to combat dangerous climate change, and in the meantime we will learn nothing.

“Until the scheme is finalised, businesses will continue to focus on minimising their commercial risk and negotiating for additional concessions. When a scheme is in place, they will concentrate on investments to increase their competitive advantage in a carbon-constrained economy.”

The Biofuels Association of Australia (BAA) would like to encourage the debate on increased incentives for clean energy options and direct action so as to provide the framework for a robust and competitive domestic alternative fuels industry, Heather Brodie, CEO of the BAA said.

“Ninety eight per cent of the energy used in the transportation industry still derives from fossil fuels but the failed CPRS ignored the possibility of immediate reductions of emissions through the use of alternative fuel sources such as ethanol and biodiesel blends.

“While we wait for the outcome of any future ETS negotiations and plans, the upcoming increased fuel excise taxes will make any economically viable biofuels production extremely difficult, potentially decimating an emerging industry, before any ETS or carbon tax has a chance to work on truly valuing the carbon content of the Australian transport sector in the marketplace.

“It is imperative that Australian industry gets certainty sooner rather than later so that investment decisions can be made. The biofuels industry in particular must have clarity on proposed changes to the excise regime. However, the ETS legislation in the meantime can be significantly improved to produce immediate outcomes of reductions in emissions by the recognition of the role of biofuels in the scheme.”

Senator Penny Wong says she will not abandon action on the CPRS and the legislation is set to be reintroduced in February next year.