Professor Ross Garnaut led two climate change reviews, the first commencing in 2007 and the second in 2010.
The first Garnaut Climate Change Review was a study by Professor Ross Garnaut, commissioned by then Opposition Leader, Kevin Rudd and by the Australian State and Territory Governments on 30 April 2007. After the election on 24 November 2007, Prime Minister of Australia Kevin Rudd 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. Some observers have remarked that the Garnaut Review would be Australia's version of the Stern Review. 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 final report of the Garnaut Review was delivered on 30 September 2008.
Interim report - 21 February 2008
The interim report of the Garnaut Review was released on 21 February 2008. The executive summary states:
"Adaptation to climate change, energy efficiency and the distribution of the costs of climate change across households and regions are not considered in any detail in the report, but will be addressed in the final report."
"Australia’s interest lies in the world adopting a strong and effective position on climate change mitigation. This interest is driven by two realities of Australia’s position relative to other developed countries: our exceptional sensitivity to climate change: and our exceptional opportunity to do well in a world of effective global mitigation. Australia playing its full part in international efforts on climate change can have a positive effect on global outcomes. The direct effects of Australia’s emissions reduction efforts are of secondary importance."
Interim greenhouse gas emissions reduction targets for 2020 to be set in 2008 are supported in addition to targets for 2050. An emissions trading scheme (ETS) is also supported, but there is little discussion as to why it is preferred over a carbon tax. There seems to be support for the continued public funding of research into carbon capture and storage in spite of the failure of the FutureGen project in the US to maintain public funding.
Forestry and deforestation
The impact of deforestation is only considered for other countries, especially Indonesia and Papua New Guinea. The report does not consider forestry or deforestation in Australia. This contrasts the McKinsey Report on Greenhouse Gas Reduction which places forestry as the sector with the most significant greenhouse gas abatement potential in Australia for reductions by 2020.
Draft report - 4 July 2008
The draft report of the Garnaut Review was released on 4 July 2008.
The main conclusions of the report are
An ETS is preferred to a tax or hybrid scheme. The ETS could have a transitional phase from 2010–2012 Permits could be sold at a "low, fixed" price during the transitional phase. Spreading the costs across the economy will be achieved by including as many sectors as possible Transport should be included in the emissions trading scheme ("ETS"). Emissions permits should be sold by competitive auction, and not given away or "grandfathered" to polluters. Low income households will need compensation. Half of the funds collected from the sale of permits can provide compensation for low income families. Areas that rely on coal-based power stations will need specific support. Australia should lead the way in making carbon capture storage (for example through biosequestration) commercially viable A new research council should be set up. $3 billion per year or 20% of the revenue raised from auctioning permits (whichever is greatest) should be allocated to low-emissions technology R&D The Building Australia Fund should also be used for energy infrastructure. Australia should help Asian countries reduce their levels of emissions. Energy prices will rise under the scheme and will hit low income households hardest
Projected impacts of climate change
The report indicated that in the absence of a global effort to reduce CO2 emissions, climate change would have severe adverse effects on Australian agriculture and on the natural environment. Irrigation in the Murray-Darling Basin would be severely affected, and in the most adverse scenarios, would cease altogether. Severe damage, and even destruction of the Great Barrier Reef is also a likely impact of rapid climate change.