Labor climate law is an economic precipice

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In what the Australian described as a “capitulation of the Greens”, the government Climate Bill passed the House of Representatives. His passage to the Senate is a formality.

With the bill’s central requirement that greenhouse gas emissions be reduced by 43% (from the 2005 baseline), it amplifies the official reduction level of 28-30% set by the coalition government. previous. In pursuit of decarbonization to combat a mythical “climate crisis,” the bill aims to thwart the use of coal and gas. Doing so will increase the costs of mining, manufacturing, and other services; it will also increase costs in the agricultural sector, in particular by diverting the use of productive agricultural land towards a carbon sink.

The Greens’ so-called capitulation stemmed from their apparent acquiescence to the bill having no “climate trigger” that would block all future coal and gas proposals. “We will not implement this policy,” Mr. Albanese told the ABC.

A few days from the Climate Bill By the way, several news stories put his attack on the country’s resource wealth in context.

First came the news of the windfall Australia is currently reaping from its hydrocarbon exports. Compared to last year, the June 2022 value of coal exports increased by 270% and that of gas exports doubled. Currently, coal and gas make up a colossal 43 percent of the nation’s exports – the things that sustain our current standard of living.

And, more importantly for politicians who view the taxes generated by these exports as an exercise in vote buying, it has brought an injection of cash into the Treasury. That’s $27 billion more than predicted in the April pre-election update.

All of this seems to vindicate Mr Albanese’s pledge not to allow his ambitions to meet the Woke agenda of leading to the Greens passing Full Monty.

But the Greens, Teals and other economic nihilists are playing a longer game.

Adam Bandt, by “capitulating” to the Climate Bill not formally prohibiting new coal and gas projects, said there were a “variety of ways” to address the issue of new coal and gas projects, including through the Environment Protection and Biodiversity Conservation Act (EPBC).

And lo and behold, it happened!

In a remarkable coincidence, the day after the bill was passed, Environment Minister Tanya Plibersek rejected the Queensland Central Coal Project backed by Clive Palmer, saying it was “likely to have unacceptable impacts on the Great Barrier Reef Marine Park”. The mine reportedly generates $8.2 billion in export revenue annually and employs up to 500 people. Ms Plibersek’s decision serves several purposes: it cements Labour’s environmental credentials, offers a trophy to the Greens and administers a blow to a political enemy. The economic chaos this will cause is a small price to pay for such prices!

Ironically, that same day we saw the perforation of the catastrophic fraudulent claims underlying the Minister’s decision that global warming and land-based pollutants were destroying the Great Barrier Reef. Data published by the Australian Institute of Marine Science confirmed the accuracy of the measurements and analyzes carried out by Dr. Peter Ridd. Dr. Ridd’s defense of his findings led the scientific community at Reef to have him fired as a professor at James Cook University and director of its marine geophysics laboratory.

On his own, the Climate Bill will inflict great damage on the economy. Tony Abbott is surely right that this will lead to a “storm of litigation” from environmental groups, resulting in many projects failing to gain approval and everyone else paying a greater form of “regulatory tax”.

Viv Forbes is also correct that the effects will be compounded by amendments and reinterpretations of dozens of related laws and regulations. Indeed, Climate Change Minister Chris Bowen has already announced new measures, including additional direct subsidies and indirect “backstop mechanism” subsidies (forcing companies to gradually reduce their carbon dioxide emissions) and the quadrupling of the transport system.

But, infected with a mixture of self-awareness and self-interest in the regulatory favors offered by the bill, the major business bodies are applauding the self-sacrifice Australian governments are making on our behalf. For them, it is worth destroying the economy in pursuit of Net Zero’s Shibboleth and Australia’s global leadership to achieve it. Among those who have signed up to support its adoption are the Business Council, the Australian Industry Group, the Australian Energy Council and the Australian Institute of Company Directors.

Mainstream media are largely on board. Most would agree with the opinion expressed by The Australians Politics and Investigations editor Olivia Caisley who said “our politicians have finally come to terms with co-parenting the climate” while lamenting that the PLA has not embraced the more extreme policies promoted by the Greens.

Similarly, the Coalition is primarily complicit in the objectives of the bill. One member actually voted in favor and leader Simon Birmingham would not have been the only one considering such action. Only a handful of coalition politicians, including Matt Canavan, Alex Antic and Colin Boyce, have bothered to study the issue, to recognize that Net Zero means net poverty.

Argentina and South Africa are among the economies demonstrating that politics can kill disposable wealth by properly managing a wealth of resources. Will we wake up before the corrosive effect of the attack on modern technology sends the Australian economy down the same path?

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