Treasury Modelling Shows Path to a Sustainable Energy Future

30 October 2008

Sharon Grierson said today that new Treasury modelling showing Australia could reduce emissions while continuing economic growth was good news for Newcastle and the Hunter.

The comprehensive modelling released has three key conclusions:
·         The Australian economy will continue strong growth while reducing emissions.
·         The earlier Australia acts, the cheaper the cost of action.
·         Many of Australia’s industries will become more, not less, competitive.

Ms Grierson said Novocastrian households and businesses could be assured that climate change can be tackled in a way that was affordable and economically sustainable.

“The report concludes that fears of ‘carbon leakage’ may be overplayed, and the allocation of free permits will ease the transition for emission-intensive trade-exposed sectors like aluminium and steel,” Ms Grierson said.

“These industries, along with coal and electricity generation, are vital to our local economy so beginning work early to prepare for a sustainable energy future is critical.

“And with our industrial and research base, we are well placed to take a lead in the green industries that are predicted to be 30 times bigger by 2050.”

“The modelling shows that household incomes, along with the economy, are projected to grow strongly but that they may face marginally higher prices for electricity and gas.”

“That’s why the Government will offer compensation to low and middle income households to help them adjust.”