Might be best to dump ETS, says Garnaut

The federal government's own climate adviser says it might be best to dump the
emissions trading scheme (ETS) and "have another crack at it" later.
Professor Ross Garnaut says it's lineball whether the scheme in its current form is
worth doing.
He urged senators to make substantial changes as he addressed a committee hearing on
Thursday.
"If there were no changes at all it would be a lineball call whether it was better
to push ahead or say ... we'll have another crack at it and do a better one when
time is right," he said.
Prof Garnaut set out three major changes that should be made to the scheme, which is
due to start next year, including deeper cuts to greenhouse gas emissions.
As it currently stands, the scheme will cut emissions by five to 15 per cent by 2020
but Prof Garnaut wants the upper limit increased to 25 per cent, conditional on
other countries taking similar steps.
He also wants the government to commit more money for new, green technologies.
And he's worried the ETS gives too many free permits to industry and wants to build
in an escape clause to rein them in.
"There are some things that could be done that may reduce the compromise in the ETS
to an extent that would make it worthwhile," he concluded.
Prof Garnaut told a Senate hearing on climate change, initiated by the opposition
parties, he was agonising over whether it was better to bring in an imperfect scheme
or start all over.
A second, government-dominated, Senate committee into the ETS surprised no one on
Thursday when its report found the scheme was a positive strategy.
But non-Labor senators immediately lined up to attack the scheme, indicating it is
in real trouble in the upper house.
The coalition called for the government to dump its ETS and go "back to the drawing
board". The Greens said "serious changes" were needed.
Independent senator Nick Xenophon said the ETS was "ill equipped" to bring about
reform, and Family First senator Steve Fielding raised concerns the scheme would
cost families too much.
Prime Minister Kevin Rudd stuck to his agenda on climate change despite the chorus
of criticism, launching a global institute to clean up coal.
The Global Carbon Capture and Storage Institute will have its headquarters in
Canberra, and has 85 members, ranging from governments to coal giants.
Australia will spend up to $100 million a year on the institute, which focuses on
capturing carbon emissions from coal-fired power stations and burying them
underground.
Mr Rudd noted Australia was the world's biggest coal exporter.
"This institute recognises the cold hard reality that coal will be a major source of
power generation for many years to come," he said.
"Australia has a major stake in the fossil fuel industries."
But critics say the technology might not work and renewable energy is a better option.