Emissions Trading Scheme Good Start; but Underwhelms
Tuesday, December 16th, 2008Details of the Emmisions Trading Scheme (or ET) was announced 15-Dec-08 (eg www.abc.net.au) and are to reduce by 5% carbon emissions of 2000 levels by 2020, or 15% if the rest of the world steps up. Per capita this is on par with Europe.
With a carbon price of $25 per tonne, electricity is expected to increase by around $4 per week, with a rise in gas prices of around $2.
Some time ago, I wrote that people change for one of three reasons
- They make money
- They lose money
- It’s the law
Whether you are strongly of the view that the government is a whimp, and this is a cop-out, or of the view that climate change caused by humans is a complete furphy, one thing is now going to be fixed in law. The law to start change will be in place. It may not be high, but it does start to change attitude. A government might even have to raise the levels if Australia is to meet 60% by 2060!
The good news is when you replace your electric or gas hot water system with a solar hot water system, you will now contribute and benefit in 4 ways.
- You will help Australia meet the ET target. (Solar Hot water reduces household carbon emissions by 40% - see electricity savings).
- The expected rise in energy prices for households will mean you are going to be up for an additional $5 per week ($250 per year.) This is on top of an expected 15% price increase of electricity this coming year. Put this towards a new solar hot water system.
- You can give the energy company (and the dirty coal power plants) the finger! You are not beholden to the major polluters.
- You pocket the expected $20 a month extra compensation. (If you are on a pensions, family Tax A, then you get 2.5% benefit; with minimal increase in other costs)
As philosophers say all the time: Good things start small.
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