The Australian Carbon Pollution Reduction Scheme: What Role for Complementary Emissions Reduction Regulatory Measures?

While emissions trading is emerging as the optimal strategy for reducing GHG emissions, there seems to be a difference of opinion as to whether other emissions reduction measures should, or indeed could, coexist with an ETS.7 When the Stern Review Report recommended the establishment of a carbon price, it also emphasised the importance of policies to stimulate the development of low carbon technologies,8 and the removal of barriers to behavioural change. Stern concluded that leaving out any one of the recommended elements for dealing with climate change will significantly increase the costs of any action which is taken to reduce GHG emissions. This article highlights the complementary measures which currently exist or are under development in Australia, and considers various perspectives on whether they are needed to reduce emissions from the stationary energy sector.