Dr Dennis Jensen MP

It should go without saying that any solutions Australia considers for global warming must have real, measurable impacts on reducing global temperatures.

Yet debate in Australia is still centralised around pricing carbon to reduce our consumption of fossil fuels. This taxation measure will cost our nation trillions and even supporters of the tax cannot guarantee any reduction in carbon emissions.

Even with a tax, most Australians will maintain their current fossil fuel consumption and more crucially this tax has no effect on the big polluters overseas. Pricing carbon is a method of carbon abatement the world has tested for the past two decades without success. It is a feel good solution but it fundamentally fails in its primary purpose.

Let’s skip the politics of fear and discuss what really works.

Funding advanced energy R&D will lead to a more energy efficient future by making low-emission technologies more accessible. If we can get sustainable energy to be cheaper than fossil fuels then an economic imperative will drive adoption by industry and big business.

This also tackles the global element. China, India, USA and other big polluting nations will power their industry with the energy source that is most cost effective.

Funding advanced energy R&D is a long term investment but will also provide lasting solutions. Investment now will have great effect by the much hyped 2050 deadline.

Copenhagen showed us we can’t get a global approach to climate change at this time. The big polluters of the world, China, India and the US just aren’t interested acting for the sake of the environment.

However a country like China will act on a purely economic imperative. China is interested in the return on investment provided by energy technology and currently lead the world in their manufacture. 2010 saw half of China’s energy capital invested in renewable projects. China has made the seemingly obvious connection between R & D investment and the multiplier effect on its GDP growth.

In January 2006, China initiated a 15-year medium to long-term plan for the development of science and technology, the nation aims to become an "innovation-oriented society" by 2020 and a world leader in science and technology by 2050.

Australia's R&D expenditure as a proportion of GDP remains lower than the OECD average, although we have made some progress in addressing the funding shortage.

As China has shown, investment in advanced energy R & D is a much smarter way forward. Australia can lead the world in advanced energy R&D, fuelling technological break throughs and economic growth.

Australia has the opportunity to spearhead global advanced energy R&D. This is our space race moment. Leading the world with these technology advances, allows Australia to export real climate change solutions and diversify our national economy.

By devoting just 0.2 per cent of global GDP to advanced energy R&D, about $US 100 billion a year would produce the kind of factor multiplication that could fuel a more energy efficient future.

Australia’s contribution to this figure would be 1.6 billion dollars a year. This could be taken straight from consolidated revenue without the need for any new tax. Other measures like attracting foreign direct investment to renewable energy projects through favourable tax rates would also need consideration.

How about bringing some balance to the situation and reducing the liability of sustainable energy projects and foreign direct investment to zero for the first five years. All of this could be done with minimal government intervention and no wealth redistribution, a far cry from the “price on carbon” crew. The Chicago Carbon Exchange has collapsed; the European market has similarly failed.

Has the government learnt from these mistakes and will the government guarantee the integrity of Australia’s carbon markets?

Climate minister Greg Combet is not sure yet saying

“All of that detailed work is yet to be done”

The Gillard Government is allowing social factors to influence economic matters.

Australia only produces 1.5 per cent of CO2 emissions worldwide, so how will a small reduction in Australia's emissions generated by a sizeable tax actually affect the climate?

It will have zero effect.

At least we will be leading the world by example you say.

Kevin Rudd hasn’t learned it yet, but our country has no impact on US or Chinese energy policy.

If we are genuinely believe we can do something about climate change, we are not going to be able to do that by taking action alone or even with a few other nations, without these big emitters on board, on their own terms.

A nation trying to tax itself into prosperity is like a man standing in a bucket and trying to pull himself up by the handles. It is time to move past the politics of fear, in the national interest.

We need to be doing more than things that just make us feel good. We need to be finding solutions that have a positive, measurable effect on the environment in the long term.

Let’s refocus the debate on a solution that will do just this. Advanced energy research and development is Australia’s and the world’s long term solution to global warming.