Carbon Pollution Reduction Scheme changes

The Prime Minister has announced that the Carbon Pollution Reduction Scheme will now be phased in from 1 July 2011 and a new 25 per cent by 2020 target has been proposed.(see here)

The changes include:

1. A delay in the start date of the Carbon Pollution Reduction Scheme of one year.

2. To assist businesses:

• A one year fixed price period will be introduced. Permits will cost $10 per tonne of carbon in 2011-12, with the transition to full market trading from 1 July 2012.
• A new Global Recession Buffer will be provided as part of the assistance package for emissions intensive trade exposed industries.
• Industries eligible for 60 per cent assistance will receive a 10 per cent buffer, while industries eligible for 90 per cent assistance will receive a 5 per cent buffer.
• Eligible businesses will receive funding to undertake energy efficiency measures from 1 July 2009.

3. A commitment to reduce carbon pollution by 25 per cent of 2000 levels by 2020 if the world agrees to an ambitious global deal to stabilise levels of CO2 equivalent in the atmosphere at 450 parts per million or less by 2050.

The Carbon Pollution Reduction Scheme legislation will be introduced when Parliament resumes.