Ross Garnaut

The Garnaut Climate Change Review was a study by Professor Ross Garnaut, commissioned by the Opposition Leader at the time, Kevin Rudd, and by the Australian State and Territory Governments on 30 April 2007. After his election on 24 November 2007, Prime Minister of Australia Kevin Rudd has confirmed the participation of the Commonwealth Government in the Review.

The Review examined the impacts of climate change on the Australian economy, and recommended medium to long-term policies and policy frameworks to improve the prospects for sustainable prosperity. A number of forums were held around Australia to engage the public on various issues relating to the Review. The Secretariat to support the Review was based in the Victorian Department of Premier and Cabinet. The interim report of the Garnaut Review was released on 21 February 2008 and the draft report of the Garnaut Review was released on 04 July 2008. The final report of the Garnaut Climate Change Review was delivered on 30 September 2008.

The Final Report recommended that it was in Australia's national interest to seek an international agreement for holding carbon dioxide equivalent concentrations at 450 parts per million (ppm) or lower, with Australia offering in advance to play its full proportionate part in such an agreement. He further recommended that, should all negotiations collapse at the Copenhagen summit, Australia should still reduce its emissions by 5% by 2020 on 2000 levels.

The Review recommended that an Emissions Trading Scheme, with emissions permits being allocated by auction, should be the centrepiece of Australia's policies to implement emissions reductions targets. The Emissions Trading Scheme should be supported by major public funding for innovation in low emissions technologies, funded from the permit auction revenues. The Final Report proposed a principled formula for assistance to trade-exposed, emissions-intensive industries, within which assistance would be phased out automatically as other countries introduced emissions pricing.

Professor Garnaut said that the overall cost to the Australian economy of tackling climate change under both the 450ppm and 550ppm scenarios was manageable and in the order of 0.1-0.2 per cent of annual economic growth to 2020.

The Garnaut Climate Change Review estimated mitigation costs for 450ppm at almost a percentage point more than 550pmm mitigation of the present value of Gross National Product through the 21st century. The report stated that stronger mitigation is justified by insurance value and non-market value benefits in the 21st century and much larger benefits beyond, and that the costs of action are less than the costs of inaction.

All papers (including transcripts of Garnaut Climate Change Review public events and the entire Final Report) produced as part of the Garnaut Climate Change Review are available online at: www.garnautreview.org.au.

The Garnaut Climate Change Review in the Media:

Oiling the Squeaks - Sydney Morning Herald, 20 December 2008

Too Hot to Ignore - The Australian, 6 June 2008