The Carbon era is upon us. Since our Prime Minister Kevin Rudd has ratified the Kyoto Protocol we now have a unanimous agreement among the Commonwealth Government and the State and Territory Governments to introduce a national greenhouse gas emissions trading scheme. We will see this coming into effect in 2010 most likely in the form of a Cap and Trade system and I will be posting the legislation as it is released but for now we have to sit and wait and see what they come up with.

The most likely model to be adopted for this cap and trade scheme will be the European Union’s phase two trading system. The latest figures to be submitted to the United Nations show that Australia is one of the highest greenhouse emitters per capita in the developed world.

This looks quite bad for Australia in emissions terms but as a nations total emissions we are nowhere near as harmful to the environment as our neighbours in Asia and India. China has recently overtaken the United States as the world’s largest emitter and, in an unmitigated future would account for about 35% of global emissions in 2030. Without adequate mitigation these developing countries would account for about 90% of emissions growth over the next two decades and beyond.

The high petroleum prices will not necessarily slow emissions growth for many years because of the availability of large resources of high emissions fossil fuel alternatives, notably coal. A high proportion of Australians say that they are prepared to pay for mitigation in higher goods and services prices. Most of them say that they are prepared to pay even if Australia is acting independently of other countries.

There is a much stronger base of support for reform and change on this issue than on any other big question of structural change in recent decades, including trade, tax and public business ownership reform. People in other countries have set the same views to varying degrees and seem to share Australia’s interest in preparing and taken action against global warming.

In comparison to other developed countries Australia has a larger interest in a strong mitigation outcome. We are already a hot and dry country where small variations in climate can be more damaging to us than to other developed countries. We live in a region of developing countries, which are in weaker positions to adapt to climate change the wealthier countries with more robust political and economic institutions. The problems of our neighbours would inevitably become our problems. Climate change is a global problem that needs a global solution. Stay tuned to this thread and let us here at E Property Investing guide you through the new legislations as they are imposed upon us and let you know how they will impact you as an individual and as a nation.

Thankyou,
Harry Delinicolis