1 00:00:00,040 --> 00:00:02,120 Speaker 1: Climate News as we're headed the long weekend, the Climate 2 00:00:02,160 --> 00:00:04,920 Speaker 1: Change Commission is recommending ETS prices should remain as they 3 00:00:04,920 --> 00:00:08,800 Speaker 1: are emissions trading scheme. Of course, their argument is consistently 4 00:00:09,520 --> 00:00:13,760 Speaker 1: leads to confidency. Their argument is that consistency leads to confidence, which, 5 00:00:13,800 --> 00:00:15,640 Speaker 1: if you follow the carbon market, is exactly what we 6 00:00:15,680 --> 00:00:17,640 Speaker 1: need given up take it. Auction time, of course, has 7 00:00:17,680 --> 00:00:20,920 Speaker 1: been a shamble as of late. Climate Change Minister Simon 8 00:00:20,920 --> 00:00:22,480 Speaker 1: Wattson's well us very good morning. 9 00:00:23,120 --> 00:00:24,599 Speaker 2: Morning, might breaks beyond now? 10 00:00:24,840 --> 00:00:28,520 Speaker 1: Fewer credits are same price? Do we have a winning 11 00:00:28,640 --> 00:00:29,560 Speaker 1: formula now or not? 12 00:00:30,560 --> 00:00:33,120 Speaker 2: Well, look what the Climate Change Commission has said, and 13 00:00:33,200 --> 00:00:35,720 Speaker 2: for the first time in a long time, there's actually 14 00:00:35,760 --> 00:00:38,600 Speaker 2: the settings that we've put in place last year seem 15 00:00:38,680 --> 00:00:42,479 Speaker 2: to be working. Basically, make no further changes, hand off 16 00:00:42,520 --> 00:00:46,120 Speaker 2: the tiller, and you know that's a positive feedback. We're 17 00:00:46,120 --> 00:00:48,680 Speaker 2: obtually going to review their report where only got it yesterday, 18 00:00:48,720 --> 00:00:50,879 Speaker 2: and make sure we've gone through all the detail. But 19 00:00:51,280 --> 00:00:54,040 Speaker 2: the feedback at a headline level is the changes that 20 00:00:54,080 --> 00:00:56,240 Speaker 2: we did last year to try and stabilize a market 21 00:00:56,240 --> 00:00:59,200 Speaker 2: it was pretty volatile when we came into governminating months ago. 22 00:00:59,680 --> 00:01:02,040 Speaker 2: Seeing to be doing what it was meant to do, 23 00:01:02,320 --> 00:01:04,080 Speaker 2: and that's positive for the market. 24 00:01:04,240 --> 00:01:06,360 Speaker 1: What is it meant to do given that none of 25 00:01:06,400 --> 00:01:08,319 Speaker 1: the auctions worked last year on the first auction this 26 00:01:08,400 --> 00:01:09,240 Speaker 1: year didn't work either. 27 00:01:10,440 --> 00:01:12,960 Speaker 2: Well, the reality in terms of whether auction clears or 28 00:01:13,000 --> 00:01:16,280 Speaker 2: not is a demand and supply conversation. We do know 29 00:01:16,360 --> 00:01:19,000 Speaker 2: at the moment that there is the market a happy 30 00:01:19,040 --> 00:01:20,839 Speaker 2: in terms of the amount of supply that they're able 31 00:01:20,880 --> 00:01:24,800 Speaker 2: to achieve, but in terms of the actual underpinning settings 32 00:01:24,880 --> 00:01:28,160 Speaker 2: of the market, we had government getting involved a lot 33 00:01:28,319 --> 00:01:30,800 Speaker 2: under the prior government that was causing a lot of 34 00:01:30,880 --> 00:01:34,680 Speaker 2: uncertainty and volatility. We've taken all of that away, and 35 00:01:34,720 --> 00:01:37,160 Speaker 2: now the Climate Change Commission is also saying, hey, just 36 00:01:37,280 --> 00:01:40,360 Speaker 2: keep your hands off it. It's where it needs to be. 37 00:01:40,520 --> 00:01:43,080 Speaker 1: So, I mean, from a revenue generation point of view, 38 00:01:43,080 --> 00:01:45,160 Speaker 1: you're earning no revenue and you sell no credits, you 39 00:01:45,200 --> 00:01:46,560 Speaker 1: get no revenue. You're happy with that? 40 00:01:47,520 --> 00:01:49,280 Speaker 2: Yeah, I am happy with that. At the purpose of 41 00:01:49,280 --> 00:01:51,800 Speaker 2: the market is not to create revenue that is a 42 00:01:51,840 --> 00:01:54,040 Speaker 2: byproduct of it. The purpose of the market is to 43 00:01:54,080 --> 00:01:57,120 Speaker 2: reduce emissions and that's what it's primary purposes and that's 44 00:01:57,440 --> 00:01:58,040 Speaker 2: what it does. 45 00:01:58,120 --> 00:02:00,120 Speaker 1: And to be fair, the numbers that came out what 46 00:02:00,160 --> 00:02:01,880 Speaker 1: a week, two weeks ago, whatever it was. We are 47 00:02:01,920 --> 00:02:04,640 Speaker 1: still reducing our emissions as a country, aren't we. 48 00:02:04,640 --> 00:02:07,320 Speaker 2: We are? Yeah, the settings an inventory that came out 49 00:02:07,400 --> 00:02:08,960 Speaker 2: only in the last two weeks show that we're on 50 00:02:09,000 --> 00:02:12,440 Speaker 2: a downward trajectory. The government has a plan to achieve that, 51 00:02:12,480 --> 00:02:15,280 Speaker 2: it's got a clear strategy, and actually we're doing so 52 00:02:15,400 --> 00:02:18,120 Speaker 2: without throwing a whole lot of money at the problem 53 00:02:18,520 --> 00:02:21,040 Speaker 2: and you know, not massively impacting our economy. And that's 54 00:02:21,080 --> 00:02:24,520 Speaker 2: sensible policy, it's pragmatic, and it's also reducing emissions. 55 00:02:24,560 --> 00:02:26,280 Speaker 1: What about the anks the other day that you want 56 00:02:26,320 --> 00:02:28,399 Speaker 1: a lot of planting to go on on public land 57 00:02:28,440 --> 00:02:30,720 Speaker 1: in terms of pine trees and that offsets carbon emissions 58 00:02:30,720 --> 00:02:32,080 Speaker 1: and all that sort of stuff, and all the anngstes 59 00:02:32,080 --> 00:02:34,160 Speaker 1: who got upset about that. Has that been settled? Is 60 00:02:34,160 --> 00:02:36,600 Speaker 1: that the way the future? And how much reliance is 61 00:02:36,639 --> 00:02:38,360 Speaker 1: there on trees to solve this problem? 62 00:02:39,080 --> 00:02:41,280 Speaker 2: Yeah. Look, we've heard loud and clear from farmers that 63 00:02:41,280 --> 00:02:44,880 Speaker 2: they're concerned about, you know, part of forestry on productive farmland. 64 00:02:45,040 --> 00:02:49,000 Speaker 2: We're bringing in changes this year to restrict pine on 65 00:02:49,160 --> 00:02:52,840 Speaker 2: to productive farmland. We're going to place restrictions that that 66 00:02:52,919 --> 00:02:55,560 Speaker 2: doesn't exist today, and that's what this government's going to do, 67 00:02:56,200 --> 00:02:59,200 Speaker 2: and that's the sensible thing to do to protect protect 68 00:02:59,480 --> 00:03:02,600 Speaker 2: productive farmland. That'll go some way to deal with the 69 00:03:02,639 --> 00:03:05,400 Speaker 2: concerns that have been noted. But again you know that 70 00:03:05,440 --> 00:03:08,920 Speaker 2: the last government with forestries and forestries out that was 71 00:03:08,919 --> 00:03:11,040 Speaker 2: causing a huge amount of volatility, and forestry is a 72 00:03:11,080 --> 00:03:15,640 Speaker 2: long term investment horizon. Business people need certainty and our 73 00:03:15,680 --> 00:03:18,080 Speaker 2: objective is to make sure that they know exactly what 74 00:03:18,120 --> 00:03:20,440 Speaker 2: government policy is going to do so they can plan 75 00:03:20,480 --> 00:03:22,040 Speaker 2: for the future and invest appropriately. 76 00:03:22,080 --> 00:03:24,560 Speaker 1: All right, go well this weekend, simon, what's the climate minister, 77 00:03:24,639 --> 00:03:27,480 Speaker 1: Mike is an early move in the ETS. Farmer Forester 78 00:03:27,760 --> 00:03:30,760 Speaker 1: Icee risk the ETS as a heavily regulated market which 79 00:03:30,800 --> 00:03:33,079 Speaker 1: is constantly being manipulated by the government for what is 80 00:03:33,160 --> 00:03:36,400 Speaker 1: essentially an inflationary consumption tax collected by entrepreneurs, many of 81 00:03:36,400 --> 00:03:38,720 Speaker 1: which are off sure they do not invest back into 82 00:03:38,720 --> 00:03:41,400 Speaker 1: climate initiatives and my experience they traveled yachts, et cetera. 83 00:03:41,600 --> 00:03:44,480 Speaker 1: When I consider the consumers in my small rural town, 84 00:03:45,120 --> 00:03:47,440 Speaker 1: I think the whole thing's insidious and there's no impact 85 00:03:47,480 --> 00:03:50,360 Speaker 1: whatsoever on climate change in terms of the quarterly government actions. 86 00:03:50,800 --> 00:03:53,200 Speaker 1: Their performance is a reflection of the idiocy of the 87 00:03:53,240 --> 00:03:56,360 Speaker 1: whole policy. Olie, I Like your style. 88 00:03:56,920 --> 00:03:59,760 Speaker 2: For more from the Mic Asking Breakfast, listen live to 89 00:04:00,040 --> 00:04:02,960 Speaker 2: use Talk Set B from six am weekdays, or follow 90 00:04:03,040 --> 00:04:04,600 Speaker 2: the podcast on iHeartRadio.