CTU Submission on the Review of the Emissions Trading Scheme

The CTU recognises the widespread and high level support across all groups and major parties for urgent and collective action on climate change and for an emissions trading scheme. Unions have a vital interest in climate change. The CTU has a sustainability approach to climate change. By this we mean a broad-based approach and policy solutions with recognition of costs and employment effects, assistance during transition, and a high degree of research and analysis not just of the scientific issues but also the effects on social and economic equity.

The CTU supported the Climate Change (Emissions Trading and Renewable Preference) Bill. However, in its submission on the Climate Change Bill, the CTU stated that emissions trading, as a market mechanism, will not be effective if it is the sole, or even the main, response to greenhouse gas emissions. Community and work-based education campaigns and other energy conservation measures as well as adequate, stringently enforced regulations are also needed.

The CTU has narrowed its focus to five main areas:

1. risks of leakage and the impact this has on workers and therefore the design of allocation of credits;
2. union involvement in education and other programmes to directly reduce emissions and conserve energy;
3. developing a skills for sustainability strategy;
4. advocating for those on low incomes impacted by increased fuel, electricity and other charges as a result of emissions trading;
5. monitoring specific sector impacts.