Senator Wong has a lot on her plate. Her job description as Minister for Climate Change requires her to deliver a solution to a policy problem dubbed “diabolical” by Professor Ross Garnaut. Senator Wong must also deliver and implement a solution to mitigate the effects of climate change that is based on extensive research as well as in-depth local and global consultation; that balances the concerns of everyone involved; and that will see major economic reform to the Australian economy.

Amid all the differing views about climate change, Senator Wong keeps a clear eye on the extent of the problem and the urgent need to find a viable solution locally and globally.

Local and global action In pursuit of shaping an effective global response, Senator Wong recently returned from a trip overseas, attending international climate change negotiations in Poland, meetings in London and a Ministerial Dialogue on Climate Change in Argentina. The Poland and Argentina meetings are part of an ongoing and complex process that includes the UN climate change conference in Poznan this year and ongoing negotiations through next year, culminating in the UN climate change conference in Copenhagen in December 2009.

“We recognise that it is squarely in Australia’s interests for the world to take action on climate change. And Australia is heavily engaged in the next phase of international negotiations.

“These [recent] meetings are an important part of trying to generate consensus on therange of issues under negotiation as part of attempts to forge a post-2012 global climate change agreement,” she says.

But a global response requires local action, commitment and, from nations such as Australia, leadership.

“We understand that we cannot seek to play a valued role in international negotiations if we do not take action at home,” says Senator Wong. “We need to play our part.

“Our domestic effort to take responsibility for our own carbon emissions through the Carbon Pollution Reduction Scheme (CPRS) is central to our willingness and commitment to the global effort. “Our aim is to develop an emissions trading scheme that is best practice around the world.”

Delay unavoidable “As one of the hottest and driest continents on earth, Australia’s economy and environment will be among the hardest and fastest hit by climate change if we don’t act now,” says Senator Wong.

Without action, scientists have predicted up to 20 per cent more drought months over most of Australia by 2030, more intense and damaging cyclones, and rising sea levels. Climate change threatens our food production, agriculture, and water supplies, as well as icons like the Great Barrier Reef, the Kakadu wetlands and the multibillion dollar tourism industries they support. Then there is the effect of drought and overallocation that is being felt in the Murray-Darling Basin right now.

“Failure is not an option when it comes to these challenges,” says Senator Wong. “Too much time has been wasted already,” she says, “Australians want us to take action on climate change and water, and that is what we are doing.”

Asked about the most challenging aspect of her role, Senator Wong says that there will never be an easy time to make the transition to a low carbon economy.

“But we know the longer we delay, the higher the costs,” she says. “And delay inhibits our capacity to grasp the substantial opportunities that will come from making this transition.”

Shifting energy generation incentives Under the Federal Government’s CPRS, carbon intensive fossil fuels will compete with renewable technologies on a playing field that reflects the real cost of using fossil fuels. As Senator Wong puts it, “The Carbon Pollution Reduction Scheme will remove the perverse incentives that have been in place to pollute the planet.

“This will improve the competitiveness of alternative, cleaner technologies,” she says, adding that this competition will drive Australia’s innovators to take us into a cleaner energy future.

Across the economy, the market will reward companies and industries that produce their goods and services in a more energy efficient way. Moreover, Senator Wong says that in such a market, large scale investments in clean energy can be increasingly undertaken in the knowledge that the competitive forces of the market will reward clean energy effort and initiative.

While the CPRS is the central means by which the government plans to reduce Australia’s emissions, Senator Wong says the government recognises that there are a range of critical complementary policies that need to operate alongside emissions trading. The government’s commitment to source 20 per cent of Australia’s electricity from renewable sources by 2020 is one of these complimentary measures. Energy efficiency is the other.

“The Rudd Government’s drive for energy efficiency and a future National Energy Efficiency Strategy form a key plank of our approach to reducing emissions, along with our commitment to research and development into new low emissions technologies,” says Senator Wong.

Leading by example and expertise Senator Wong knows Australia has a lot to offer the world in terms of research and technology development expertise, as well skills and services support to the region. Australia’s Garnaut Climate Change Review found that the incentive to mitigate will result in the expansion of industries where Australia can develop a comparative advantage in electricity generation – from Australia’s abundant resources in geothermal, wave and other renewables – through to its national potential for biosequestration.

The government recognises that there will be a global carbon constraint at some stage in the future. Anyone who accepts this, says Senator Wong, must also accept the reforms required to prepare the economy and capitalise on the evolving opportunities.

Senator Wong believes it will be countries that have moved to implement climate change reforms that will be best placed to deal with the global carbon constraint and Australia’s geography, geology and economy present significant advantages in this transition.

“Our scientists are among the best in the world. We have the potential to become world leaders in clean energy technology. Australia can also play a key role in the development of global carbon markets.”

Moreover, Australia is well placed to provide the necessary services to support developing carbon markets in the Asia-Pacific region.

“We are a regional commercial centre with world-class financial institutions, developed capital markets, a skilled workforce, high standards of corporate, financial and regulatory governance and political stability. The potential value of such a hub in Australia could have significant benefits for our economy.”