Today we are pleased to release the Treasury's climate change mitigation policy modelling assumptions book as part of our commitment to developing an economically responsible Carbon Pollution Reduction Scheme (CPRS).
The Rudd Government is committed to delivering the CPRS in a measured and responsible way, and will continue to consult with industry, business and the community every step of the way.
Through the Government's recent consultations there has been considerable interest from stakeholders in the Australian Treasury's climate change policy modelling assumptions. Stakeholder consultation workshops will be conducted from 7 October 2008 using these assumptions.
Key assumptions outlined include global population, productivity, gross domestic product (GDP), Australia's terms of trade and technology assumptions. The Treasury has undertaken extensive research and consulted with a wide range of domestic and international experts in developing these assumptions, particularly in relation to historical trends and possible future economic, social and technological developments.
As in any economic modelling which includes long time horizons, making firm assumptions becomes more difficult the further we look into the future. The Treasury has developed a set of assumptions which represent its best assessment of plausible central estimates within the range of possible values.
The Government intends to release a report examining the implications of alternative targets and trajectories, containing comprehensive documentation of assumptions and results, by the end of October.
There will be an opportunity for public scrutiny and comment on the detailed Treasury modelling before the Government makes its decision in December on the medium term target range and the indicative national emissions trajectory to 2012-13.
The Rudd Government is committed to tackling dangerous climate change responsibly through our Carbon Pollution Reduction Scheme, so we can protect our economy and our environment.