AYCC volunteer and policy extraordinaire, Josh, explains the key details of the carbon price package announced today
The main part of the package will be the carbon price
The price will cover around 500 of Australia’s biggest businesses, who produce most of our greenhouse pollution. Each time one of those businesses emits one tonne of carbon dioxide, they will be charged $23 for a pollution permit. This gives those businesses a reason to use energy more efficiently, invest in cleaner processes and make greener products. The price will be charged on those who produce 60% of Australia’s total emissions, including the manufacturing, electricity generation and mining sectors. Petrol and fuel used for small businesses and households won’t be charged. Agriculture also won’t be charged.
The price will rise each year, getting up to approximately $25 per tonne by 2015, when the system will move to emissions trading.
When we move to emissions trading, instead of the government setting the price per tonne, the government sets a limit on the total number of pollution permits, and companies bid for the permits – so the market sets the price. Under old proposals, companies would have been able to buy unlimited permits from overseas, which would drag down the price and make the scheme less effective, because some overseas offsets can be super dodgy. Under this package, they will be limited to buying only half of their permits from overseas, so they’ll be forced to reduce emissions here at home.
The limit on the number of permits sold will be set by the Government. However, an independent body, similar to the British Climate Committee, will advise the government on the limits based on the latest scientific and economic advice; any government going against their recommendations will have to explain their actions to the Parliament, and going against their advice will be politically difficult.
Cool. Sounds like a good start. Where will the money go?
The money raised by the fixed price (for the first three years) will be used to fund other parts of the “climate package”.
In great news, a great big chunk of the money raised will fund renewable energy investment.
The Clean Energy Finance Corporation will manage nearly $10 billion in loans and start-up funding over 6-7 years for commercial clean power projects. CEFC will be funded by money raised by the carbon price, and will also be able to raise money from private sources. As compensation to trade-exposed industries is wound down, more and more funding will be directed to clean power. This is great! Unfortunately, only half of the CEFC loans will go to real renewables; the other 50% will be directed to gas, energy efficiency and carbon capture and storage. These technologies can’t get us very far in the long run.
Some of the carbon price money will go to households, as tax cuts, higher benefits and special payments for retirees and pensioners. This means that most Australians won’t be out of pocket if there are price rises for electricity, high-carbon goods and the like. In fact, many people will be better off. Similarly, less carbon-intensive products will be relatively cheaper to buy. People with medical conditions that require home healthcare and higher energy use will be compensated as well.
Another portion of the money raised will go to compensating businesses, including companies that have competitors in countries that don’t yet price carbon. That compensation will be reduced if other countries put pollution prices in place (which they need to do! We’ll be speaking to our mates in the international youth climate movement about this one).
We also know that money will be paid to close 2000MW of generation at the dirtiest coal power plants, as well as loans to other generators, and subsidising coal mines that release high amounts of methane. Protecting these ‘gassy’ mines is a disappointing aspect of the package, but the overall package will be less generous with the coal handouts than previous proposals.
Finally, $1.7 billion of the money will go to improving Australian land management and using it to clean our air, as well as protecting biodiversity and building resilient ecosystems that will withstand the effects of climate change.
OK, that last bit about biodiversity, that’s just awesome! What else?
In other renewable news, the Australian Renewable Energy Agency (ARENA) will manage all federal funding for renewable energy investment – $3.2 billion of it! This includes schemes like the Solar Flagships Program, which recently funded two massive new solar developments in Chinchilla and Moree.
ARENA will manage these funds independently, meaning that politicians won’t be able to make snap decisions to close schemes, remove grants or otherwise continue the stop-start cycle of renewable policy that we’ve seen so far. It will be limited to funding and researching genuinely clean power sources, like wind, solar, wave and geothermal power. ARENA is a big win!
Sounds great! (I know, right?)
Finally, the package will start to clean up the Budget.
Australia currently spends billions on subsidies that encourage fossil fuel use. In 2009-10, for example, the mining sector received about $1.9 billion in fuel tax refunds. This fuel tax rebate will be cut back to pay for better measures in the package. The federal budget will be encourage less fossil fuel use. In even better news, the Productivity Commission will write a report on all other fossil fuel subsidies and the effect of keeping them. When we know exactly how much money is being spent encouraging emissions, we will be able to push the government to scrap them.
So. To wrap it up?
The climate package is not everything. It won’t deal with much of the pollution from petrol, so we still need real investment in public transport, high-speed rail and bike lanes, to get moving and improve Australian lives. The price won’t be high enough to drive clean energy investment across the country by itself, so we’ve got to make amazing community energy projects bigger and bigger. And there’s always the risk that once we move to an emissions trading scheme, the pollution limits (or ‘cap’) will be set way too low. That might sound awful, but that’s where we come in!
This is a foundation for us to build on! The AYCC encourages all politicians to support this policy because it’s an important first step in doing something about climate change (finally!). But it’s only a foundation and it won’t safeguard our future, so we need to keep working until it will.
OUR SPONSORS
Gold sponsors:
Bronze sponsors:
Want to see your business here?
Get in touch with AYCC’s Business Development Director Gemma Borgo-Caratti to learn about the full benefits of partnering with the AYCC: Gemma@aycc.org.au, 0403979724
The price will cover around 500 of Australia’s biggest businesses, who produce most of our greenhouse pollution. Each time one of those businesses emits one tonne of carbon dioxide, they will be charged $23 for a pollution permit. This gives those businesses a reason to use energy more efficiently, invest in cleaner processes and make greener products. The price will be charged on those who produce 60% of Australia’s total emissions, including the manufacturing, electricity generation and mining sectors. Petrol and fuel used for small businesses and households won’t be charged. Agriculture also won’t be charged.
The price will rise each year, getting up to approximately $25 per tonne by 2015, when the system will move to emissions trading.
When we move to emissions trading, instead of the government setting the price per tonne, the government sets a limit on the total number of pollution permits, and companies bid for the permits – so the market sets the price. Under old proposals, companies would have been able to buy unlimited permits from overseas, which would drag down the price and make the scheme less effective, because some overseas offsets can be super dodgy. Under this package, they will be limited to buying only half of their permits from overseas, so they’ll be forced to reduce emissions here at home.
The limit on the number of permits sold will be set by the Government. However, an independent body, similar to the British Climate Committee, will advise the government on the limits based on the latest scientific and economic advice; any government going against their recommendations will have to explain their actions to the Parliament, and going against their advice will be politically difficult.
Cool. Sounds like a good start. Where will the money go?
The money raised by the fixed price (for the first three years) will be used to fund other parts of the “climate package”.
In great news, a great big chunk of the money raised will fund renewable energy investment.
The Clean Energy Finance Corporation will manage nearly $10 billion in loans and start-up funding over 6-7 years for commercial clean power projects. CEFC will be funded by money raised by the carbon price, and will also be able to raise money from private sources. As compensation to trade-exposed industries is wound down, more and more funding will be directed to clean power. This is great! Unfortunately, only half of the CEFC loans will go to real renewables; the other 50% will be directed to gas, energy efficiency and carbon capture and storage. These technologies can’t get us very far in the long run.
Some of the carbon price money will go to households, as tax cuts, higher benefits and special payments for retirees and pensioners. This means that most Australians won’t be out of pocket if there are price rises for electricity, high-carbon goods and the like. In fact, many people will be better off. Similarly, less carbon-intensive products will be relatively cheaper to buy. People with medical conditions that require home healthcare and higher energy use will be compensated as well.
Another portion of the money raised will go to compensating businesses, including companies that have competitors in countries that don’t yet price carbon. That compensation will be reduced if other countries put pollution prices in place (which they need to do! We’ll be speaking to our mates in the international youth climate movement about this one).
We also know that money will be paid to close 2000MW of generation at the dirtiest coal power plants, as well as loans to other generators, and subsidising coal mines that release high amounts of methane. Protecting these ‘gassy’ mines is a disappointing aspect of the package, but the overall package will be less generous with the coal handouts than previous proposals.
Finally, $1.7 billion of the money will go to improving Australian land management and using it to clean our air, as well as protecting biodiversity and building resilient ecosystems that will withstand the effects of climate change.
OK, that last bit about biodiversity, that’s just awesome! What else?
In other renewable news, the Australian Renewable Energy Agency (ARENA) will manage all federal funding for renewable energy investment – $3.2 billion of it! This includes schemes like the Solar Flagships Program, which recently funded two massive new solar developments in Chinchilla and Moree.
ARENA will manage these funds independently, meaning that politicians won’t be able to make snap decisions to close schemes, remove grants or otherwise continue the stop-start cycle of renewable policy that we’ve seen so far. It will be limited to funding and researching genuinely clean power sources, like wind, solar, wave and geothermal power. ARENA is a big win!
Sounds great! (I know, right?)
Finally, the package will start to clean up the Budget.
Australia currently spends billions on subsidies that encourage fossil fuel use. In 2009-10, for example, the mining sector received about $1.9 billion in fuel tax refunds. This fuel tax rebate will be cut back to pay for better measures in the package. The federal budget will be encourage less fossil fuel use. In even better news, the Productivity Commission will write a report on all other fossil fuel subsidies and the effect of keeping them. When we know exactly how much money is being spent encouraging emissions, we will be able to push the government to scrap them.
So. To wrap it up?
The climate package is not everything. It won’t deal with much of the pollution from petrol, so we still need real investment in public transport, high-speed rail and bike lanes, to get moving and improve Australian lives. The price won’t be high enough to drive clean energy investment across the country by itself, so we’ve got to make amazing community energy projects bigger and bigger. And there’s always the risk that once we move to an emissions trading scheme, the pollution limits (or ‘cap’) will be set way too low. That might sound awful, but that’s where we come in!
This is a foundation for us to build on! The AYCC encourages all politicians to support this policy because it’s an important first step in doing something about climate change (finally!). But it’s only a foundation and it won’t safeguard our future, so we need to keep working until it will.
OUR SPONSORS
Gold sponsors:
Bronze sponsors:
Want to see your business here?
Get in touch with AYCC’s Business Development Director Gemma Borgo-Caratti to learn about the full benefits of partnering with the AYCC: Gemma@aycc.org.au, 0403979724
The money raised by the fixed price (for the first three years) will be used to fund other parts of the “climate package”.
In great news, a great big chunk of the money raised will fund renewable energy investment.
The Clean Energy Finance Corporation will manage nearly $10 billion in loans and start-up funding over 6-7 years for commercial clean power projects. CEFC will be funded by money raised by the carbon price, and will also be able to raise money from private sources. As compensation to trade-exposed industries is wound down, more and more funding will be directed to clean power. This is great! Unfortunately, only half of the CEFC loans will go to real renewables; the other 50% will be directed to gas, energy efficiency and carbon capture and storage. These technologies can’t get us very far in the long run.
Some of the carbon price money will go to households, as tax cuts, higher benefits and special payments for retirees and pensioners. This means that most Australians won’t be out of pocket if there are price rises for electricity, high-carbon goods and the like. In fact, many people will be better off. Similarly, less carbon-intensive products will be relatively cheaper to buy. People with medical conditions that require home healthcare and higher energy use will be compensated as well.
Another portion of the money raised will go to compensating businesses, including companies that have competitors in countries that don’t yet price carbon. That compensation will be reduced if other countries put pollution prices in place (which they need to do! We’ll be speaking to our mates in the international youth climate movement about this one).
We also know that money will be paid to close 2000MW of generation at the dirtiest coal power plants, as well as loans to other generators, and subsidising coal mines that release high amounts of methane. Protecting these ‘gassy’ mines is a disappointing aspect of the package, but the overall package will be less generous with the coal handouts than previous proposals.
Finally, $1.7 billion of the money will go to improving Australian land management and using it to clean our air, as well as protecting biodiversity and building resilient ecosystems that will withstand the effects of climate change.
OK, that last bit about biodiversity, that’s just awesome! What else?
In other renewable news, the Australian Renewable Energy Agency (ARENA) will manage all federal funding for renewable energy investment – $3.2 billion of it! This includes schemes like the Solar Flagships Program, which recently funded two massive new solar developments in Chinchilla and Moree.
ARENA will manage these funds independently, meaning that politicians won’t be able to make snap decisions to close schemes, remove grants or otherwise continue the stop-start cycle of renewable policy that we’ve seen so far. It will be limited to funding and researching genuinely clean power sources, like wind, solar, wave and geothermal power. ARENA is a big win!
Sounds great! (I know, right?)
Finally, the package will start to clean up the Budget.
Australia currently spends billions on subsidies that encourage fossil fuel use. In 2009-10, for example, the mining sector received about $1.9 billion in fuel tax refunds. This fuel tax rebate will be cut back to pay for better measures in the package. The federal budget will be encourage less fossil fuel use. In even better news, the Productivity Commission will write a report on all other fossil fuel subsidies and the effect of keeping them. When we know exactly how much money is being spent encouraging emissions, we will be able to push the government to scrap them.
So. To wrap it up?
The climate package is not everything. It won’t deal with much of the pollution from petrol, so we still need real investment in public transport, high-speed rail and bike lanes, to get moving and improve Australian lives. The price won’t be high enough to drive clean energy investment across the country by itself, so we’ve got to make amazing community energy projects bigger and bigger. And there’s always the risk that once we move to an emissions trading scheme, the pollution limits (or ‘cap’) will be set way too low. That might sound awful, but that’s where we come in!
This is a foundation for us to build on! The AYCC encourages all politicians to support this policy because it’s an important first step in doing something about climate change (finally!). But it’s only a foundation and it won’t safeguard our future, so we need to keep working until it will.
OUR SPONSORS
Gold sponsors:
Bronze sponsors:
Want to see your business here?
Get in touch with AYCC’s Business Development Director Gemma Borgo-Caratti to learn about the full benefits of partnering with the AYCC: Gemma@aycc.org.au, 0403979724
In other renewable news, the Australian Renewable Energy Agency (ARENA) will manage all federal funding for renewable energy investment – $3.2 billion of it! This includes schemes like the Solar Flagships Program, which recently funded two massive new solar developments in Chinchilla and Moree.
ARENA will manage these funds independently, meaning that politicians won’t be able to make snap decisions to close schemes, remove grants or otherwise continue the stop-start cycle of renewable policy that we’ve seen so far. It will be limited to funding and researching genuinely clean power sources, like wind, solar, wave and geothermal power. ARENA is a big win!
Sounds great! (I know, right?)
Finally, the package will start to clean up the Budget.
Australia currently spends billions on subsidies that encourage fossil fuel use. In 2009-10, for example, the mining sector received about $1.9 billion in fuel tax refunds. This fuel tax rebate will be cut back to pay for better measures in the package. The federal budget will be encourage less fossil fuel use. In even better news, the Productivity Commission will write a report on all other fossil fuel subsidies and the effect of keeping them. When we know exactly how much money is being spent encouraging emissions, we will be able to push the government to scrap them.
So. To wrap it up?
The climate package is not everything. It won’t deal with much of the pollution from petrol, so we still need real investment in public transport, high-speed rail and bike lanes, to get moving and improve Australian lives. The price won’t be high enough to drive clean energy investment across the country by itself, so we’ve got to make amazing community energy projects bigger and bigger. And there’s always the risk that once we move to an emissions trading scheme, the pollution limits (or ‘cap’) will be set way too low. That might sound awful, but that’s where we come in!
This is a foundation for us to build on! The AYCC encourages all politicians to support this policy because it’s an important first step in doing something about climate change (finally!). But it’s only a foundation and it won’t safeguard our future, so we need to keep working until it will.
The climate package is not everything. It won’t deal with much of the pollution from petrol, so we still need real investment in public transport, high-speed rail and bike lanes, to get moving and improve Australian lives. The price won’t be high enough to drive clean energy investment across the country by itself, so we’ve got to make amazing community energy projects bigger and bigger. And there’s always the risk that once we move to an emissions trading scheme, the pollution limits (or ‘cap’) will be set way too low. That might sound awful, but that’s where we come in!
This is a foundation for us to build on! The AYCC encourages all politicians to support this policy because it’s an important first step in doing something about climate change (finally!). But it’s only a foundation and it won’t safeguard our future, so we need to keep working until it will.
OUR SPONSORS
Gold sponsors:
Bronze sponsors:
Want to see your business here?
Get in touch with AYCC’s Business Development Director Gemma Borgo-Caratti to learn about the full benefits of partnering with the AYCC: Gemma@aycc.org.au, 0403979724