A presentation by Frank Jotzo (Professor of environmental and climate change economics, ANU Crawford School of Public Policy). This event is part of the Sustainability Colloquium hosted by the Centre for Sustainability.
Global decarbonisation, if implemented efficiently, implies large changes in trade flows not only for energy but also for energy intensive products like ammonia and iron. Australia has ready access to practically unlimited renewable energy, resources that require energy for processing, and a stable institutional framework, making it one of the ideal geographies for future production of energy intensive traded commodities. But the ability and appetite to subsidize export industries is limited. Carbon pricing coupled with border carbon adjustments could help the emergence of clean heavy industries in the places where they can produce most cost effectively, rather than where they are most heavily subsidised. Border carbon adjustments that create a genuine level playing field, minimise compliance costs and rely on internationally interoperable building blocks could be a way forward.
Following the presentation, attendees will have the chance to discuss and ask questions. This session will be moderated by Christian Flachsland.
Speaker
Frank Jotzo is professor at the Australian National University’s Crawford School of Public Policy. Among other policy advisory, he led Australia’s Carbon Leakage Review which investigated the suitability of border carbon adjustment as a complement to Australia’s heavy industry emissions policy. He was lead author in the previous two IPCC assessment reports and serves on the PIK scientific advisory board.