Right Pulse

The Garnaut report, which seeks to levy heavy taxes on carbon producing activities, has been released and is getting favourable coverage from the main stream media. This should come as no surprise given the agenda driven coverage of this news over the last 5 years. When one actually deals with the facts though, the picture becomes a harsh one for those pushing the climate change agenda.

The single most important fact that readers should be aware of is that no carbon cap and trade system will have any measurable impact on the climate. No politician or academic will be able to stand up and say that because of the cost $x billion incurred by Australia on carbon cap and trade, the average temperature in Australia has dropped x Celsius. A carbon cap and trade system will have no impact on the climate - none.

If one assumes that human induced greenhouse gas emissions causes global warming, Australia’s greenhouse gas emissions are so small (about 1 per cent of the world) that one would not be able to measure the impact on temperature from any introduction of carbon pricing and the consequent emissions reduction.

The only clear outcome is that Garnaut’s approach will increase our cost of living and thereby reduce our standard of living, increase government control over our lives and make the Australian economy less internationally competitive. And what for, to show leadership?

GEORGE NEGUS: So I guess, to that extent, you should feel as though you guys, over the years, have achieved something in that the environment is in people’s consciousness, isn’t it?

PETER GARRETT: Well, look, I hope so. I think that’s what the public are telling us – it does matter to them. What they’re also telling us is they want leadership and they want a commitment.

Its the type of leadership that matters, and the way the debate is being held over carbon cap and trade at the moment, it is likely to be leadership more akin to the charge of the light brigade during the Crimean War. Leadership yes, but leadership for leadership’s sake - sacrificially pointless. As Alfred Tennyson wrote about the charge:

Theirs not to make reply  Theirs not to reason why  Theirs but to do and die

Indeed, as “All the world (once) wonder’d”, the world will wonder again. But final thoughts go to Professor Dr. Jack Steinberger, CERN - Europäisches Kernforschungszentrum, joint-Nobel Prize Winner in Physics, 1988. On a recent discussion on ‘Climate Changes and Energy Challenges’, from the 58th Lindau Nobel Laureate Meeting, Steinberger said:

Here on this table you’ve heard opinions which didn’t agree, and we’re all claiming to be scientists. So, to what extent political leaders can believe us is not obvious.

From the BBC about the potential merger between BHP and Rio Tinto:

A tie-up between BHP and Rio would create a firm with a third of the world’s iron-ore market, raising fears that it would be too powerful.

The EU listed its concerns but said BHP would be able respond, adding the findings had not been pre-judged.

Ah ha though, where there’s a will there’s a way to stop the free market:

US regulators have approved the deal but, like the EU, Australia’s regulators are also sceptical.

Why on earth Australian regulators would be opposed to such a move is a mystery. It would make BHP one of the top 5 corporations in the world by market value - think of the tax revenue from the strengthend market position such a merger would result in. Anyway, this rather interesting note from Forbes magazine:

The commission said its preliminary investigation showed that the proposed takeover raises serious doubts as to its compatibility with the single market. The EU executive has particular concerns over the markets for iron ore, coal, uranium and aluminium and mineral sands, because the proposed takeover could result in higher prices and reduced choice for these companies’ customers.

Seems like the EU has already made up its mind, but they have a get out clause:

The commission said, however, that its decision to open an in-depth inquiry does not prejudge the final result of the investigation.

Some how I find that slightly unbelievable.