Grattan Institute Report Analyses 300 Climate Action Programs

australia's productivity challenge

Because Australian governments have introduced more than 300 programs to tackle climate change since Australia signed the Kyoto Protocol in 1997, we can assess the evidence of what works and what does not in reducing carbon emissions. The evidence shows that what reduces emissions most effectively and cheaply is the creation of a market.

In this report, Grattan Institute analyses these 300 programs and finds that three market-based schemes have produced 40 per cent of Australia’s emissions reductions since 1997 (excluding once-off land clearing). This is easily the largest reduction in emissions induced by any mechanism government has tried.

By contrast, $7 billion worth of grant-tendering schemes – upfront grants to companies for proposals to reduce emissions – have done very little to reduce greenhouse pollution. Governments have also spent $5 billion on rebate programs to encourage the purchase of low-emission products. Again, the impact on emissions has been minimal.

A fourth kind of program – energy efficiency standards – can reduce emissions cheaply and effectively, but these are limited in scope. Based on experience, only a market-based model can meet Australia’s 2020 target, endorsed by both main political parties, of reducing annual emissions to five per cent below 2000 levels.

Here’s a link to the webpage: and here’s the link to download a copy of the main report:


I am a concerned world citizen who wishes a sustainable existence for all life forms on our wonderful planet. I also compose and play music:, promote the Sustainability Street Approach, Transition and Permaculture principles as well as a progressive Australia exemplified by GetUp!:
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