Carbon pricing policy a small start to tackling climate change
Submitted by takver on Tue, 12/07/2011 - 6:01amOn Sunday the Gillard Federal Government announced it's carbon tax at $23 a tonne of carbon to be imposed on the 500 largest carbon polluting companies starting from July 1st, 2012. More than half the money raised will be returned to low and middle income earners, pensioners and retirees as compensation. Additional packages include $10 billion renewable energy and low emissions technology fund, substantial assistance packages to 'trade exposed' industries, $1.9 billion to fund carbon geo-sequestration in the land sector, and a $1 billion biodiversity fund.
The initial rate of $23 a tonne will be indexed at 2.5% for 3 years before an Emissions Trading Scheme is introduced in 2015 with a cap and floor price set by the Government. An independent Climate Change Authority will be established to recommend targets when the emissions trading scheme commences to take some of the politics out of the process. A target of 80% emissions reduction from 2000 levels by 2050 will be set.
See also: Carbon price in a nutshell according to the Australian Youth Climate Coalition. Full Details are available on the Government compensation package and of the carbon price modelling from Treasury Department.