Woodend Integrated Sustainable Energy Inc
PO BOX 849
Woodend, VIC, 3442
3rd May 2011
The WISE group is pleased to make a submission to the government’s consideration of carbon pricing
arrangements and particularly in relation to the proposed architecture and implementation arrangements.
The WISE group is the energy project team of the Macedon Ranges Sustainability Group (350 members).
The mission for WISE (Woodend Integrated Sustainable Energy Inc) is to help the community take
responsibility for their energy and carbon future.
As such WISE is currently involved in the development of community based and owned projects including:
the development of a small scale (3 turbine) community wind farm, the development of a community
green power scheme and the retailing of biodiesel.
Like many similar organisations that are attempting to educate and empower local communities to take
action on climate change WISE is frustrated with the lack of real action by Governments at all levels and
despite 2011 being a year of decisions in relation to a carbon price, WISE holds only faint hope of an
effective carbon price being introduced in 2012.
Of particular concern is that even by adopting a carbon price Australians will not be getting effective action
on climate change. As Guy Pearse has commented in the February edition of The Monthly “as the CPRS
debacle reinforced, a carbon price didn’t require emission cuts in Australia nor reduce fossil fuel
dependence, nor stop coal export emissions being doubled.”
In his book The Climate Fix: What Scientists and Politicians Wont Tell You About Global Warming, Roger
Pielke explains there are three types of responses to climate change “ fix-as-dilemma (action on climate
change but not to the detriment of economic growth)”, “fix-as-stitch-up (providing lip service to
alternative technologies and espousing targets that cannot be met)” and “fix-as-solution (investment in
renewable energy to bring the cost below that of fossil fuels)”.
The Melbourne Energy Research Institute has suggested Australia could be powered by 100% renewable
energy (wind solar and geothermal) at a cost of around $35 billion per year (3% of GDP) for 10 years.
By placing a price on carbon the Government has the opportunity to build the war chest (ref Paul Gilding)
that is required to create an energy transformation.
Individuals, communities and companies do not trust the government’s commitment to address climate
change with a tax or market based scheme. There are too many hidden agendas being promoted by lobby
groups and listened to by government.
The Carbon price needs to be sufficient to allow renewables to compete with fossil fuels. This means
stripping away the current fossil fuel rebates, pricing carbon emission externalities and hypothecating
revenues to an independently managed (e.g. Australian Carbon Trust) green investment bank – not fiddling
with tax rates, not compensating large emitters but rewarding individuals, communities, companies and
governments that invest in renewable energy generation on any scale – via a universal feed-in-tariff.
The current environment is already too complicated (renewable energy targets, energy efficiency schemes,
clean development mechanisms and voluntary offsets) which has lead to a loss of interest by the general
public and a lack of engagement in being part of the solution.
Whilst 840,000 households buy green power and 105,000 have added solar PV to their roofs in 2010, there
is considerable overlap in these populations. By being unable to understand the policy economics of
climate change and observing government reticence to take real action and set targets commensurate with
the challenge and our moral responsibilities as a developed country with a heavy carbon footprint,
consumers turn off.
Keep it simple stupid should be the design principle in relation to a carbon price. No exceptions, no deals,
no cross pollination with income tax. What is needed to restore confidence and engagement is a fully
transparent, hypothecated tax with an independent Green Investment Bank investing in a grand vision to
replace fossil fuels with renewables (supported by a smart grid , smart meters and in home (and office)
energy displays) through a universal feed in tariff. As in Canada a preferential rate should be considered for
community based projects .
Failure to deliver effective action on climate change and in particular carbon emissions will be considered
a profound dereliction of government duty. WISE is taking action locally to provide energy security, a
reduced carbon footprint and generate significant revenue for tackling other climate change and
sustainability issues.
The effective design and implementation of a carbon price by the federal government is fundamental.
Peter Hansford
WISE President