The Australian newspaper yesterday reported that former Esso Australia chairman John Schubert said in the wake of the drought in Australia, extreme weather disasters and record global temperatures, the nation had reached “tipping point” on climate change.
“I have to say that the Australian community reached a tipping point about September-October, over about a six-week period, when it was just extremely clear that the Australian community bought in that climate change was a real problem,” he told the newspaper.
The Commonwealth Bank chairman, who sits on the board of diversified resources giant BHP Billiton, has now joined a growing group of Australians involved in the energy sector calling for a carbon-trading scheme.
The Australian reported that Schubert’s push comes just one day after Rio Tinto said the Federal Government should proceed with emissions trading even if major polluters including China and the US refused to be involved.
Schubert said businesses increasingly understand how high an issue global warming has become in Australia and called on the Government to push the US into action.
He also urged the Government to plan for a phased introduction of carbon trading to allow business to plan accordingly and avoid disruption.
The plea comes after the release of a landmark report into climate change from Australia’s leading energy stakeholders last month.
At the time, WWF-Australia chief executive Greg Bourne said the report, The Heat is On: The Future of Energy in Australia, removed the last barrier to a carbon price signal in Australia.
The environmental effects of global warming have also shaken Bourne, who moved from being president of energy giant BP Australasia to CEO of the conservation organisation more than two years ago.
He said the report recognised that managing climate change is the biggest challenge facing the energy sector, which is best served by providing investor confidence through decisive policy action.
The report was the result of a coalition of Australia’s leading energy and transport stakeholders including Rio Tinto, BHPB, Xstrata Coal, Woodside Energy, Westpac Bank, Alcoa World Alumina and the Australian Automobile Association.
“There is now clear consensus on the need to move forward on climate change,” Bourne said.
“But the report warns that delaying action leads to uncertainty for investors in energy, and this could lead to higher prices or disrupted supply.”
The report reveals Australia and the international community can make deep cuts to their greenhouse gas emissions with little impact on the economy.
“This report effectively removes the last remaining obstacles for meaningful action on climate change and gives the green light to federal and state governments to act decisively to establish a carbon price signal and to legislate the pathway for deep cuts in greenhouse gas emissions,” Bourne said.
“One of the key tests for the next Australian government will be how well it deals with the threat of climate change and how effectively it can implement a fully operational carbon price signal, as well as investment in new technologies, mandated energy efficiency and renewable energy targets.
“Australia’s energy future clearly relies on these measures being in place by 2010, the absence of which creates a very uncertain investment environment and will result in higher electricity prices and an unreliable supply.”
