AFTER months of lobbying for protection from the cost of cutting emissions, business groups praised Professor Ross Garnaut's advice not to rush into cuts before the world's largest polluters.
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Yesterday's draft report says that without an international agreement between the largest emitters to cut emissions, the Government should aim for a 5 per cent reduction. The Business Council of Australia said this supported its calls for a cautious approach.
The report's modelling said a 10 per cent cut would curb economic growth by 1.1 per cent by 2020, and shave off a further 0.1 per cent a year until 2050. In the second half of the century cuts to emissions would encourage growth, and by 2100 the economy would be better off than without the scheme because of the climate-change damage avoided.
The Australian Petroleum Production and Exploration Association, which represents the LNG sector, said the
10 per cent reduction target would be "very challenging".
The Australian Industry Group said the speed of carbon reduction suggested would test businesses, as the country was on track to increase its 2000 emissions by 20 per cent by 2020.
Clancy Yeates
