The Hon. Greg Hunt MP
Minister for the Environment
Climate Change Authority report
27 February 2014
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The Climate Change Authority's Targets and Progress Review Final Report shows the ineffectiveness of Labor's carbon tax.
It is clear that there has been no change to previous analysis by the Productivity Commission that found no country currently imposes an economy-wide tax on greenhouse emissions or has in place an economy-wide ETS.
In its first year of operation, the carbon tax was a $7.6 billion hit on the Australian economy and a direct hit on around 75,000 businesses - yet emissions reduced barely 0.1 per cent.
The carbon tax is inflicting massive damage on Australian households and businesses but it simply doesn't work.
The Climate Change Authority's report also confirms that many other countries are taking direct action to reduce emissions in ways that do not involve raising electricity prices, reducing competiveness and hurting every single household in the country.
The Government is committed to reducing Australia's emissions by 5 per cent below 2000 levels by 2020. This will be achieved through our Direct Action plan - with the Emissions Reduction Fund as the key element.
Any additional targets will be reviewed in 2015 in the lead up to the Paris conference, as has been our longstanding position.
Through the Emissions Reduction Fund the Government will encourage low-cost, effective emissions reduction opportunities - unlike the carbon tax, which is a high-cost, ineffective approach that does not cut domestic emissions over the long-term.
Unlike Labor, we won't tax the whole economy to achieve our emissions reduction target.
Along with the carbon tax, the Government is committed to abolishing the Climate Change Authority as part of our commitment to removing duplication with costly bureaucracies.
We have the Environment Department, Bureau of Meteorology and CSIRO to provide comprehensive and independent advice to the Government on climate change.
Legislation to repeal the carbon tax and the Climate Change Authority has been before the Senate since December last year but a vote is being held up by Labor.
In the meantime, we will consider the Authority's work respectfully and carefully.