Queensland locks itself into a high carbon, high cost economy

The Bligh government is locking Queensland into an economy dominated by high dependence on fossil fuels, high greenhouse gas emissions and high payments on carbon credits. Figures released by Friends of the Earth today reveal Queensland currently produces 190 million tonnes of carbon dioxide equivalent and is set to increase that by 25 per cent over the next four years from new coal and coal seam gas developments alone.

Friends of the Earth spokesperson Drew Hutton said, with the current makeup of the Parliament, the possibility of the federal government putting a price on carbon is very strong. In the words of the agreement signed by the ALP and Greens, it states this quite explicitly, with both parties committing: 

That Australia must tackle climate change and that reducing carbon pollution by 2020 will require a price on carbon. Therefore the Parties agree to form a well resourced Climate Change Committee which encompasses experts and representative ALP, Greens, independent and Coalition parliamentarians who are committed to tackling climate change and who acknowledge that reducing carbon pollution by 2020 will require a carbon price.

This price, whether as a tax or a credit, is likely to start at about $25 a tonne, as recommended in the Garnaut Report. This price would be passed on to the consumer resulting in Queenslanders paying a total price for these carbon emissions of $4.75 billion.

This will rise steeply over the following years with the state’s rapidly increasing emissions, especially from the development of new coal and coal seam gas mines. This situation will worsen if there is an international agreement to put a price on carbon.

According to Mr Hutton's analysis:

If there is an international price on carbon in the next few years, Queensland polluters will have to buy carbon credits on the international market.

The problem is every industrialised country is well over its target and so there will be only a limited number of these credits available.

The cost will be astronomical and that cost will ultimately be passed on to the consumer.

By buying the right to be such a high carbon emitter Queensland will, effectively, be subsidising the renewable energy industries of China and India.