Can we afford $40 a tonne for carbon?
John Kirk | May 17, 2011
Our challenge is to pin-point what the tipping price is to motivate Australian industry to start innovating.
Much of the debate in the news over the last few days has been over the actual price of the soon to be carbon tax. It has been suggested that a tax of $40 will be the going rate whilst Labor Party Minister Combet says that it will start at much less than that.
Is $40 too much? The truth is that it probably isn’t enough, but it will be more than will be charged.
In order for the carbon tax to be truly effective it must be high enough to initiate innovation by industry. The greatest leaps forward in technology will be made not on a voluntary basis but when industry is forced to become creative in order to maintain profits.
History has shown that the harder times are for industry the more creative they become. The scientific advances created through the first and in particular second world wars are proof of this.
More recently and probably much more related to this current issue are the innovative answers found by industry to comply with the Montreal Protocol that placed bans on CFC gases. Industry stated that the targets set by the agreement were too ambitious and would cost industry millions. Instead history has shown that the innovative nature of industry not only found ways to meet the targets but that they created a more profitable industry along the way.
I am not a wealthy person and have a family to support so I understand the reality that this carbon tax is going to make life more expensive. But as a person interested in sustainability I also realise that we cannot continue to do business as usual and expect that the climate will recover.
The greatest advances required today are in the areas of renewable energy, sustainable building, and sustainable transport. These are the keys to a sustainable future. Australia needs to be on the forefront of developing these technologies and implementing them. I believe a carbon tax will motivate industry to do just that.
Initially it may have an effect on our competitiveness internationally but I am confident that the ingenuity of Australian industry will soon overcome this and develop ways by which they can be sustainable and profitable. Australia has always been innovative, but there is also a tendency for Australians to be apathetic.
I recall cliché sayings from my youth like, “give him a six inch nail and a four by two and he can build anything,” but also the old graffiti in the Central Station tunnel that stated “Apathy is Australia’s number one problem” followed by a smaller statement “Who cares!”, and the standard Aussie reply, “she’ll be right mate”.
Australians have to stand up and make a statement to industry and to the world in general that we do care and that we can be innovative and find solutions to the needs of industry and the needs of the climate. If it takes a tax on carbon to motivate us out of our slumber and to put on our thinking caps then I say bring it on.
John Kirk recently graduated with a MBA from The University of New England and is currently studying for an MBA (advanced) in Corporate Sustainability with Southern Cross University. John has more than 30 years experience in the print industry, having acted as a representative at both state and national levels as a Director of ACFIPS Industry Training Advisory Board and as a member of the Sector Advisory Committee for Innovation Business Skills Australia. John is interested in sustainability, corporate social responsibility, futurism, and developing people. For the last 7 years he has sat on the corporate social responsibility committee for a major corporation.
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Solar_Supporter
July 7, 2011 at 11:18 am
So Much for Solar as a Solution
A big congratulations goes out to Barry O’Farrell tonight. Because in true political fashion he has managed to decry, defame and basically demolish the solar industry. With the following comment on his blog, you can only wonder what his solution is, it’s definately not an alternative clean energy, is it Mr O’Farrell???
BO; "The NSW Liberals & Nationals have launched positive and practical action plans to help ease the cost of living pressures for families and households – especially from electricity prices.
I understand the impact power prices are having on people’s hip pockets – that’s why I’ve announced a responsible and believable plan to bring down electricity bills."