In the lead-up to the Glasgow climate change summit next month, the ACT has become the first Australian jurisdiction to put a dollar value on climate inaction by implementing a ‘social cost of carbon’.
A ‘social cost of carbon’ is a tool used across the globe to estimate the associated costs of damage from the release of one tonne of carbon dioxide equivalent.
For each tonne of emissions, the ACT Government will pay $20 into a dedicated fund, and invest the money in activities to reduce emissions, such as upgrading to efficient electric schools and zero emissions buses.
The ACT Government will apply this action only to emissions from its own operations, and not to business or the community.
Shane Rattenbury, ACT Minister for Emissions Reduction, said that the ACT Government’s emissions reduction targets – net zero by 2045, and reducing emissions from government operations by 33% from 2020 to 2025 – required ambitious policy tools and government investment.
“While Australians are crying out for the Federal Government to commit to responsible emission reduction targets, the ACT has already legislated them, and the social cost of carbon will help us reach those targets,” Mr Rattenbury said.
The ACT Government measures and reports its operational emissions each year. It will draw on independent and expert advice, including from the ACT Climate Change Council, to develop an agreed value for the social cost of carbon by 2025.
“Applying a cost to government projects will support more informed decision making and make sure that we invest in climate action and our community’s continued health and wellbeing,” Mr Rattenbury said.
You can find more information on this project, including the reports presented to the government about ‘social cost of carbon’, on the ACT Government’s Environment website.
Get all the latest Canberra news, sport, entertainment, lifestyle, competitions and more delivered straight to your inbox with the Canberra Daily Daily Newsletter. Sign up here.
