Terms of reference
30 April 2007
To report to the Governments of the eight States and Territories of Australia, and if invited to do so, to the Prime Minister of Australia, on:
- The likely effect of human induced climate change on Australia’s economy, environment, and water resources in the absence of effective national and international efforts to substantially cut greenhouse gas emissions;
- The possible ameliorating effects of international policy reform on climate change, and the costs and benefits of various international and Australian policy interventions on Australian economic activity;
- The role that Australia can play in the development and implementation of effective international policies on climate change; and
- In the light of 1 to 3, recommend medium to long-term policy options for Australia, and the time path for their implementation which, taking the costs and benefits of domestic and international policies on climate change into account, will produce the best possible outcomes for Australia.
In making these recommendations, the Review will consider policies that: mitigate climate change, reduce the costs of adjustment to climate change (including through the acceleration of technological change in supply and use of energy), and reduce any adverse effects of climate change and mitigating policy responses on Australian incomes.
This Review should take into account the following core factors:
- The regional, sectoral and distributional implications of climate change and policies to mitigate climate change;
- The economic and strategic opportunities for Australia from playing a leading role in our region’s shift to a more carbon-efficient economy, including the potential for Australia to become a regional hub for the technologies and industries associated with global movement to low carbon emissions; and
- The costs and benefits of Australia taking significant action to mitigate climate change ahead of competitor nations; and
- The weight of scientific opinion that developed countries need to reduce their greenhouse gas emissions by 60 percent by 2050 against 2000 emission levels, if global greenhouse gas concentrations in the atmosphere are to be stabilised to between 450 and 550 ppm by mid century.
Consult with key stakeholders to understand views and inform analysis. A draft Report is to be distributed for comment by June 30 2008. The final Report is to be completed and published by September 30 2008. Interim draft reports on particular issues may be released before that time for public discussion. The Report will embody the independent judgments of its author.