Garnaut Review

Garnaut Review
Title	Garnaut Review
Author	Ross Garnaut
Language	English
Country	Australia
Subject	Climate change policy
Published	2008, 2011
Publisher	Australian Government

Garnaut Review The Garnaut Review is an Australian government-commissioned assessment of the impacts of climate change and policy responses, authored by economist Ross Garnaut and released in reports in 2008 and 2011. It addresses interactions among Australian institutions such as the Commonwealth of Australia, Australian Treasury, Department of the Environment and international fora including the United Nations Framework Convention on Climate Change, Intergovernmental Panel on Climate Change, and the World Bank. The Review drew on evidence from scientific bodies like the CSIRO, economic organizations like the OECD and International Monetary Fund, and stakeholder groups including Australian Industry Group and Australian Conservation Foundation.

Background and Commissioning

The Review was commissioned in 2007 by Prime Minister Kevin Rudd following international negotiations at the 2007 United Nations Climate Change Conference and national policy debates influenced by reports from the Intergovernmental Panel on Climate Change and outcomes of the 2006 Stern Review. Ross Garnaut, an academic associated with the University of Melbourne and former advisor to the Commonwealth Treasury, led a team that engaged with actors including the Australian Labor Party, Liberal Party of Australia, National Party, and state governments such as Victorian government and Queensland Government. The remit intersected with Australian statutes and instruments like the Kyoto Protocol and considerations being debated in the Australian Parliament and by regulatory authorities such as the Australian Competition and Consumer Commission.

Key Findings and Recommendations

The Review concluded that unchecked anthropogenic emissions would impose substantial costs on sectors represented by entities like the Australian Bureau of Agricultural and Resource Economics and Sciences, BHP Group, and Wesfarmers. It recommended economy-wide carbon pricing mechanisms akin to emissions trading systems used by the European Union Emissions Trading System and mechanisms discussed at the Copenhagen Accord, with transitional arrangements and assistance for industries represented by Australian Steel Association and communities like those in New South Wales and Western Australia. Policy prescriptions included investment in low-emission technologies developed in collaboration with institutions such as the Commonwealth Scientific and Industrial Research Organisation and funding channels tied to entities like the Clean Energy Finance Corporation and international instruments such as the Green Climate Fund.

Methodology and Modelling

Analytical work used integrated assessment and computable general equilibrium models familiar to teams at the International Energy Agency, World Bank, and OECD. The Review’s modelling incorporated climate projections from the IPCC Fourth Assessment Report and emissions scenarios comparable to Representative Concentration Pathways discussed in later IPCC cycles, and economic baselines aligned with data from the Australian Bureau of Statistics and forecasts used by the Reserve Bank of Australia. Sensitivity analyses referenced inputs and comparators drawn from studies by Nicholas Stern, William Nordhaus, and research centres at the Australian National University and Grattan Institute.

Economic and Policy Implications

The Review framed carbon pricing as central to aligning behaviour of market participants such as Rio Tinto, Fortescue Metals Group, and the agricultural sector in regions like Tasmania with long-term mitigation goals similar to those pursued by European Commission and national programs in New Zealand and Canada. It discussed fiscal instruments, compensation schemes for households and sectors including miners and utilities like AGL Energy, and transition strategies for labour forces represented by unions including the Australian Council of Trade Unions. International competitiveness, trade exposure, and border adjustment mechanisms were analyzed with reference to precedents in the North American Free Trade Agreement context and debates at meetings of the G20 and Asia-Pacific Economic Cooperation.

Reception and Impact

The Review provoked responses across the Australian political spectrum from figures such as John Howard, Julia Gillard, and Tony Abbott and organisations including the Business Council of Australia and Australian Conservation Foundation. Media coverage featured outlets like The Australian, The Age, and ABC News, while academic commentary emerged from faculties at the University of Sydney and Monash University. Elements of the Review informed policy decisions including the proposed carbon pricing mechanism under the Gillard government and discussions leading to legislative action debated in the House of Representatives and the Australian Senate.

Subsequent Developments and Updates

Following the original reports, updates and sequel analyses engaged with evolving science from the IPCC Fifth Assessment Report and economic work by Treasury (Australia) and think tanks such as the Australia Institute. International developments including the 2015 Paris Agreement and initiatives by the Green Climate Fund reshaped the policy landscape envisaged by the Review, while domestic changes—electoral shifts involving leaders like Malcolm Turnbull and Scott Morrison—altered implementation trajectories. Scholarly follow-ups and critiques appeared in journals affiliated with the Griffith Review and policy research by the Lowy Institute and the Broadbent Institute.

Category:Climate policy reports