EMISSIONS TRADING AND CARBON TAX

On July 10th 2011, Australian Prime Minister Julia Gillard announced a two-stage plan for a carbon price mechanism for Australian business. This will start with a fixed price period of three years (where a carbon tax will be in place) before transitioning to an open market emissions trading scheme.

The carbon price will begin on 1 July 2012 and will be costed at $23 per tonne. A large range of tax and renewable energy programs will accompany this carbon tax. Many large companies support this measure including GE and Linfox, as well as Australian banking organisations such as NAB (detailed explanation here).

It is important to note that this tax will only directly impact Australia's largest emitters (Listed Here), these include electricity generators and mining companies. Those that emit 25,000 tonnes of Scope 1 GHG Emissions (at an individual facility) are included. However, these companies will then likely increase their own prices - which will filter down to consumers and other companies. The overriding aim of the tax is to make renewable energy sources more cost effective, and reduce our reliance on fossil fuels.

Further details on this pricing mechanism (Clean Energy Future Legislation) is available here.

Emission Statement can assist companies with making the transition to a carbon constrained economy through a number of services. To discuss the Carbon Tax or Emissions Trading Scheme and its effect on your organisation please call Emission Statement on (02) 9025 3946 or Contact Us