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The Carbon Tax Repeal: Trading Off Australia's Future?

23 Jul 2014
Eva Brockschmidt
Source: CC Flickr (qian)

The recent repeal by Australia of the carbon tax has drawn strong international criticism.

Late last week, Prime Minister Tony Abbott made good one of his key election promises to scrap the carbon tax after the Government was successful its third attempt to repeal the tax in the Senate. The repeal passed with a final vote of 39 to 32. During the press conference which followed the Prime Minister called the repealed legislation a ‘useless and destructive tax’ which had been driving up the cost of living for Australians.

While not ruling out future action, Prime Minister Abbott has made it clear that he does not plan to introduce any environmental protection measures which could damage or slow economic growth. In the meantime the repeal of the carbon price means that Australia is left without a primary mechanism to cut carbon emissions.

International Criticism

While there has certainly been a domestic reaction to the repeal, with Crikey characterising it as a generational failure of leadership, in Australia the issue has being largely overshadowed by the attack on Malaysian Airlines flight MH-17.

By contrast , the international community has not been slow to condemn Abbott’s move in scrapping the carbon tax. In the US former vice president Al Gore called the outcome ‘a disappointing step’ which comes as the US is moving towards introducing carbon pricing.

Across the Atlantic the European Union’s Climate Commissioner, Connie Hedegaard, also voiced disappointment and concern at Australia’s carbon price repeal. Covering around 45% of the European Union’s total greenhouse emissions, the EU’s emissions trading scheme, which has been in place since 2005, was due to be linked to Australia’s own trading scheme. However these plans have now become redundant.

The United Kingdom, also a party to the EU’s ETS, has declined to officially criticise the Australian government for its actions. However Lord Deben, a senior UK Tory, has denounced the repeal of the carbon tax. The former UK environment secretary referred to the decision as ‘reckless’ as well as ‘deeply shaming’ and pointed out that around the world conservative governments, including Britain and Germany, were taking action on climate change.

The Independent has reported that the repeal of the carbon tax threatens to make ‘an international laughing stock’ out of Australia – and notes the irony that Australia is widely considered one of the developed nations most likely to feel the immediate impact of climate change.

The international reaction is likely to be part of domestic debate with Greens leader Christine Milne saying that Australia risks becoming “a global pariah in the family of nations” and promising to campaign for the return of ‘rigorous’ laws to combat climate change. Opposition Leader Bill Shorten has criticised the Government’s alternative Direct Action policy as a ‘climate sceptic’ approach to global warming. Meanwhile Labor has announced that it will take a policy to bring back an emissions trading scheme to the 2016 elections.

 

Eva Brockschmidt is an intern at the Australian Institute of International Affairs National Office. She can be reached at intern1@internationalaffairs.org.au.