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Climate club plans could punish Australia

According to observers, Australia could get an economic chill from the wealthiest countries in the world unless it makes more efforts to curb emissions.

Climate diplomacy experts have seized the speech of the new German Prime Minister, Olaf Scholz. Olaf Scholz called on a group of seven industrialized nations to become founding members of the “Climate Club”.

He promised that Germany would use the G7 Presidency to promote new standards by member states and warned that it would no longer wait for Strugglers.

“We will use the G7 Presidency to turn the group into the core of an international climate club,” he said at an event held by the World Economic Forum on Wednesday.

“What we want to achieve is a paradigm shift in international climate policy. We no longer wait for the slowest and most ambitious.

“Instead, we set an example and agree on joint minimum standards to transform climate change from a cost factor to a competitive advantage.”

Schortz promises that the G7 Climate Club will limit global warming to 1.5 ° C and achieve climate neutrality by 2050, trying to achieve these goals “by pricing carbon and preventing carbon leaks.” I suggested that I should try.

Economist Nicky Hatley, a councilor of the Climate Council, said Prime Minister’s comments reveal what would happen if countries like Australia were unable to schedule emission reductions. Said.

“The cost of neglecting this is not only due to the outlook for carbon border tariffs, but also to the loss of investment capital and the potential economic benefits of being a pioneer in the green industry,” she said.

Dr. Wesley Morgan is an expert in international climate diplomacy and a researcher at the Asian Institute at Griffith University.

He said Schortz’s use of the phrase “climate club” was in favor of Nobel Prize-winning economist William Nordhaus.

Nordhaus said collective action was the solution. This includes disciplinary mechanisms such as tariffs on products from countries that cannot withdraw their weight.

“The Morrison government will pay very close attention to this climate club’s proposal because it is where rubber hits the road,” Dr. Morgan said.

“It goes beyond diplomatic pressure and is considering policies to be implemented collectively by major trading partners and large powers-a policy that imposes actual economic and diplomatic costs on underdeveloped countries. “

All G7 countries have promised to halve their emissions by 2030, but Australia promises only 26-28% reductions, albeit expecting better results. doing.

Earlier this year, Germany took over the chair of the G7 block of major western economies, including the United States, France, Italy, Japan, Canada and the United Kingdom.

AAP is seeking comments from the government.

Climate club plans could punish Australia

Source link Climate club plans could punish Australia

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