
Green is the new buzzword but is it so simple for a country to shift gears towards a green revolution? Conceptually its pretty simple but the harsh realities of life puts it in a totally different perspective. That’s exactly what Australia is facing these days.
The country has vowed to reduce its green house gas emissions by 60% in just 42 years i.e 2050. A time-frame of forty two years looks very simple in writing but it’s actually a very ’short’ time for big economies. The government will start implementing the ‘green’ plan from 2010 but is facing a lot of dilemmas. The Wall Street Journal blog not-so-recently took an intensive look at the situation.
The biggest fear is that the country’s biggest industries, that also generate the highest greenhouse gases, will simply leave for the ‘not-so-greener’ pastures. The economy will definitely get a severe blow out of this mayhem. The second issue faced by the Aussie government is that it gets major chunk of its energy needs from coal power (around 80%). If the government imposes restrictions on coal-fired plants then it’ll face a severe energy crisis. The government is thinking the following solution.
So what’s the solution? Pass the buck. The government wants to give away pollution permits to the dirtiest industries exposed to global competition, for the first decade at least, to make sure they don’t flee for balmier shores. For the worst offenders, the government figures giving them free permits for 90% of their emissions should do the trick. For coal-fired plants, the government wants to match some free permits with government investment in clean coal to cushion the sector’s transition.
The common Aussie will bear the brunt of all this ‘drama’. Keith Johnson adds in the blog, “The permit giveaways would mean fewer government revenues, which means less cash in public coffers to help families adjust to higher fuel and power bills. And since the dirtiest parts of the economy have their bar set so low, the rest of the economy has to run that much harder to meet the overall targets.”
So any lessons for other countries on the greener path? Don’t panic and shy away from adopting greener strategies. Aussies will definitely sort out the bottlenecks though they are not meeting the targets. At least they have taken the lead. So the lesson for other countries, especially developing ones, is to follow suit but… with a more practical approach.
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