Yesterday, the Parliamentary Budget Officer released a report that unsurprisingly states that the federal carbon price will need to increase significantly, absent other measures. This is not news. We all know this is the case. We also know that the government is finalising all kinds of other non-price measures as part of their plans to exceed our 2030 Paris targets, including the Clean Fuel Standard, and we have Jonathan Wilkinson on the record stating that they are nearly ready and should be out before the end of the calendar year. Why the PBO and others feel the need to keep repeating that absent other measures the carbon price would need to increase significantly to meet those targets, I’m not sure, because all it does is start a new round of media nonsense about how awful the current prices are (they’re not), and that this is all one big socialist plot, or whatever. And there are more measures on the way, so the question becomes fairly moot.
Speaking of the Clean Fuel Standard, there was a bunch of clutched pearls and swooning on fainting couches over the past couple of weeks when a former MP and current gasoline price analyst indicated that said Standard would be like a super-charged carbon price, and a bunch of Conservatives and their favoured pundits all had a three minutes hate about it. What I find amusing is that these are the same people who a) claim to believe in the free market, b) oppose the carbon price which is a free market mechanism to reducing carbon emissions, and c) are calling for more regulation, which the Clean Fuel Standard is, even though regulations are opaquer as to the cost increases that will result. There is an argument to be had that the government should focus on increasing the carbon price over other regulatory measures (though I would disagree with the ones that say all of said measures should be abandoned in favour of the price), but getting exercised because the very regulatory measures you are looking for cost more money means that you’re not really serious about it in the first place.