The Crest of the Commonwealth of Australia Treasury Portfolio Ministers
Picture of Wayne Swan

Wayne Swan

Deputy Prime Minister and Treasurer

3 December 2007 - 27 June 2013

30 October 2008

NO.119

Joint Media Release
with
Senator The Hon Penny Wong
Minister for Climate Change and Water

Government launches Australia's Low Pollution Future Report

Today the Rudd Government is proud to launch Australia's Low Pollution Future: The Economics of Climate Change Mitigation.

This comprehensive report contains Treasury's detailed modelling of the costs and opportunities of acting decisively to meet the challenge of climate change.

It provides fresh evidence that early action to tackle climate change will sustain growth, create new jobs and protect our economy into the future.

The report - which measures the economic impact of cutting carbon emissions through the Government's Carbon Pollution Reduction Scheme - has three key conclusions:

  • The Australian economy will continue to grow strongly as we reduce carbon emissions.
  • The earlier Australia acts, the cheaper the cost of action. The longer we delay, the more damage we risk to the Australian economy.
  • Many of Australia's key industries will become more, not less, competitive.

The report also finds that average annual GNP growth will only be one tenth of one per cent less than it would be in a world without action to tackle climate change.

It shows that taking early action will allow an orderly and gradual adjustment to a low-carbon economy. However delaying action, and then playing catch up, will deliver a sharper shock to the economy in the years ahead.

The report confirms that it is in our economic interests to take early and decisive action on climate change.

The modelling indicates that economies that act early face lower long-term costs - around 15 per cent lower than if we delay until internationally agreed action.

Putting in place the necessary economic reforms through the Carbon Pollution Reduction Scheme will also allow Australia to capitalise on emerging opportunities and gain a competitive advantage.

The report contains the most complex, comprehensive and rigorous analysis of its kind ever undertaken in Australia.

It is a key part of the Government's commitment to implementing the Carbon Pollution Reduction Scheme in a measured and economically responsible way which is affordable for families and pensioners and supports future economic growth.

A summary of the Report, along with the full Report, are available at: http://www.treasury.gov.au/lowpollutionfuture/

Summary fact sheets of the Report's key finding are also available at: http://www.treasury.gov.au/lowpollutionfuture/factsheets/

BRISBANE
30 October 2008