Great article by Terry McCrann – by my calculations in 2020 we will be paying ~$117 per head to buy emission permits from overseas – as Terry McCrann points out – these could be from “Nigerian scam” operators.
By 2050 the Treasury modelling suggests we could be paying $2280 per head. Surely the Gillard Govt will not be able to sustain this huge confidence trick on the Australian electorate.
Full article archived.
Staggering cost of CO2 permits revealed
AUSTRALIAN businesses and households will have to send about $650 billion overseas between 2020 and 2050 to buy permission to keep some of our coal-fired power stations and other industries operating.
This staggering cost is indicated in the fine print of the Treasury modelling of the Government’s carbon dioxide tax and subsequent emissions trading scheme.
The $650 billion will be to buy “permits” to emit CO2.
The permits will be bought from sellers that don’t yet exist, or in markets that have yet to be formed, although the Government expects – hopes – they will develop over the next few years.
But this week it was reported that European police agency Europol had revealed a fraudulent trade in these so-called carbon credits in the only serious market that does operate – for the European Union – was far more widespread than previously thought and could have cost EU taxpayers up to €5 billion ($7 billion) in lost revenue in just 18 months.
It’s important to stress, we won’t be buying anything tangible with this huge amount of money.
Like wind turbines or solar panels or even licences to use technology. It will just buy “permission” to emit CO2 with every prospect it will be rorted Nigerian-style.
These are the permits that Australian industry and power stations will have to buy under Julia Gillard and Greens leader Bob Brown’s scheme. With the costs passed on to consumers.
Even without any rorting, the impact on the economy of this part of the scheme will be exactly like taking $650 billion and shredding it.
That will be throwing away nearly $30,000 for every Australian, about $120,000 for a family of four.
These wasted funds could build 15 National Broadband Networks. They could build a fast train network linking every capital city five or six times over. Every hospital we need. Every road. Every port, every dam, indeed every power station.
The expected outlay is the equivalent of closing down the entire economy for a full six-month period. True, as it’s spread over 30 years, that allows Treasury to claim we’ll hardly notice the loss.
Indeed, Treasury claims that by pushing up the price of power, to everyone – households and businesses alike – every year, from next year through to 2050, we’ll all get richer and richer.
Under its plan, the Government is committing to cut Australia’s CO2 emissions by 5 per cent by 2020 and by 80 per cent by 2050. Except it isn’t, and we won’t.
The Treasury modelling shows that would require us to cut our emissions by 152 million tonnes in 2020.
According to Treasury we’ll actually only cut 58 million tonnes.
So we’ll buy “permits” from foreigners that will cover the other 94 million tonnes. Theoretically somebody else – Nigerians? – will do the actual cutting; and we’ll pay them to allow us to keep emitting.
Treasury estimates these permits will cost $29 per tonne in 2020, so the total cost in that year will be a relatively modest $2.7 billion. That’s “relatively modest”, only if you are living in Canberra’s ivory towers.
But by 2050 we’ll be buying permits from foreigners covering 434 million tonnes, according to Treasury. And they will cost $131 a tonne then, Treasury says.
So by 2050 we’ll be sending $57 billion every year to foreigners. Just for the right to keep our lights on. That’s to say we will be throwing away an NBN every year.
If we calculate a constant increase in the number of permits and their price from the $2.7 billion in 2020 to the $57 billion in 2050, the total cost adds up to nearly $650 billion over the thirty years.