Actions to mitigate climate change are incompatible with a market economy. They would involve a move to socialism. 

Fact:

 There is no truth to this statement. Climate deniers tend to make it because they believe that all climate activists are closet Marxists. In fact, market mechanisms are by far the best way to drive the economy towards carbon neutrality. By introducing a carbon tax or an emissions trading scheme (ETS), businesses would be given a market signal that would push them to reduce CO2 emissions without significant input by government. Such mechanisms are no different in the way they operate than tariffs and excise duties (such as taxes on tobacco and petrol). They skew market signals so as to produce the government’s desired outcome. The carbon tax that operated in Australia from 2012 to 2014 was extremely effective in reducing CO2 emissions, without in any way impeding economic growth. Interestingly, the so-called ‘direct action’ policy that replaced it saw only a marginal fall in emissions. [By one estimate, if the rate of reduction under the Coalition government were to have continued, Australia would not have reached net zero emissions until 2167!] 

Hence, there is no need for excessive government intervention in order to move to a carbon neutral economy. What is needed is a clear set of price signals to encourage businesses and consumers to stop using fossil fuels and invest in renewables. [Interestingly, it is the fossil fuel industry in Australia that has been, and still is, the main beneficiary of government intervention – in the form of an $11 billion a year subsidy. Strangely, few climate sceptics claim this to be a form of socialism.]

What is also needed is a significant boost in government spending, to make up for nine years of climate inaction under the federal Coalition. This does not mean government ownership of industry, or any other form of socialism. But it does mean greater government intervention in areas that are roadblocks to further progress on renewables. The nation’s energy infrastructure is at the top of this list.