Competitiveness And Economic Development

Focus Session 5 Competitiveness and Economic Development Heather Ridout, Chief Executive, Australian Industry Group U.S. Chamber of Commerce’s Institute for 21st Century Energy September 2009

Australian Proposal • Emissions trading regime from 2011 (initial year at a fixed price of $10/tonne)

• Very broad coverage (covering 75% of national emissions)

• Preference to include agriculture from 2015 (would take coverage towards 90%)

• A reduction by 2020 to 5%-25% below 2000 levels (a per capita drop of 34%-48% below 1990 levels)

Competitiveness Measures • Target range varies with extent of international agreement • Permits for emissions intensive trade exposed activities • Fund for grants for investment in emissionreducing and energy-saving investments

Some discussion points • Economic development with carbon constraints • Design and effectiveness of national measures to maintain competiveness • Green tariffs • Pathways for developing country participation: – Technology transfer – Sectoral strategies – Demonstration