MEDIA RELEASE

DEPUTY PRIME MINISTER AND
MINISTER FOR TRADE

TIM FISCHER

26 May 1999

Climate Change: Australia Looking For Cost-Effective Measures With Economic Growth

The Deputy Prime Minister and Minister for Trade, Tim Fischer, has welcomed a constructive dialogue on climate change at the Ministerial meeting of the International Energy Agency which took place in Paris on 24-25 May.

Mr Fischer represented the Minister for Industry, Science and Resources, Senator Minchin, at the meeting that took place immediately prior to the OECD Ministerial meeting also in Paris.

"Representatives from the twenty four International Energy Agency countries agreed that the policies and measures implemented to reduce greenhouse gas emissions must take into account cost effectiveness and different national and sectoral circumstances," Mr Fischer said.

"Ministers present agreed that meeting Kyoto commitments offers a substantial economic and political challenge. Along with domestic measures, the flexibility mechanisms in the Kyoto Protocol will be needed to meet commitments cost-effectively. The issue of putting a 'cap' on emissions trading was also discussed and there was broad appreciation of the additional costs this would impose in respect of global emissions abatement."

"In this context it was agreed that it is vital to use energy efficiently, so that energy services are not reduced. Australia has a lot at stake on the world energy and trade front as a net energy exporter and will pursue its interests vigorously."

Mr Fischer said the constraints imposed by the differing characteristics of member countries, the rigidity of infrastructure and market dynamics were generally understood.

"Each country will have to develop its own approach and innovative policies will be needed. The success to date in Australia of the Greenhouse Challenge Government/industry program of co-operative agreements is a case in point," Mr Fischer said.

Other issues discussed by Ministers were developments in energy markets and their implication for economic efficiency and energy security.

Paris