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The generation of electricity is one of the greatest sources of the greenhouse gases that contribute to global warming. Whenever electricity is generated by burning fossil fuels, there is a rise in the concentration of carbon dioxide in the atmosphere and therefore a rise in average global temperatures. Simplistically, nuclear energy should solve this, because fossil fuels are not burnt to produce the electricity, but some scientists say that the mining and production of the uranium fuel require as much energy as the electricity produced - thereby negating the hoped-for benefits. Renewable resources such as wind, solar energy and geothermal energy a excellent candidates for producing electricity without emitting greehouse gases. Electricity authorities purchase generators and transmission equipment on the basis of 'presnt value' rather than with an eye to minimising losses. In other words, they choose the best economic compromise between lower cost, higher loss equipment and expensive, low loss eequipment. Since higher losses mean more greenhouse gas emission, it would be better forthe environment if the electric companies were required always to purchase low loss generators, Transformers and transmission lines, but this will not happen without a carbon price.

Industry produces vast quantities of greenhouse gases, often wastefully. Only when there is a cost involved does inductry take seriously its obligation to minimise carbon emissions. Once again, the main tool to achieve this is some form oof carbon pricing mechanism.

Even farming contributes to global warming because when cattle and sheep burp, they produce methane gas, which is a potent greenhouse gas. Scientists are looking at ways to help cattle and sheep produce less methane gas, but that is only a long-term possibility.

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