Australian Regulatory Compliance Review

Draft regulations for the Carbon Pollution Reduction Scheme

The Commonwealth Government has released draft regulations for the Carbon Pollution Reduction Scheme, including the first tranche of activities that will be eligible for assistance under the emissions intensive, trade exposed (EITE) assistance program.

The first tranche of draft regulations for EITE assistance relate to the following activities: carbon black production, bulk flat glass production, glass container production, methanol production, silicon production, white titanium dioxide pigment production, zinc smelting, and newsprint manufacturing.

Senate Inquiry into the Carbon Pollution Reduction Scheme Bill 2009

The Senate has referred the provisions of the Carbon Pollution Reduction Scheme Bills, to the Senate Standing Committee on Economics for inquiry and report by 15 June 2009.

Submissions can be made until 4 June.

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.

Tax treatment of emissions units

The technical tax details of the treatment of emissions units are set out in the draft Carbon Pollution Reduction Scheme (Consequential Amendments) Bill of 2009.

Submissions close on 14 April.

Release of exposure draft legislation for the Carbon Pollution Reduction Scheme

The Government has released exposure draft legislation and explanatory materials for the Carbon Pollution Reduction Scheme.

The exposure draft legislation sets out what is required of participants in the Scheme and the mechanics of the Scheme to ensure Australia’s emissions reductions targets are achieved.

The exposure draft legislation will be referred to the Senate Standing Committee on Economics to report by 14 April.

Submissions from interested parties on the exposure draft legislation also close on Tuesday, 14 April 2009.

Guidance for emissions-intensive trade-exposed industries

The Department of Climate Change has released a guidance paper for the assessment of activities for the purposes of the emissions-intensive trade-exposed (EITE) assistance program under the Government’s Carbon Pollution Reduction Scheme.

The assessment process will inform the Government’s decision on which activities in the economy are eligible to receive EITE assistance, the rates of assistance that will apply to eligible activities and the basis for allocations to these eligible activities.

The Government will make final decisions taking into consideration the policy framework outlined in the White Paper and the information provided in this assessment process. The Government’s final decisions will be reflected in the Scheme regulations.

Carbon Pollution Reduction Scheme White Paper released

The Australian Government has released the White Paper outlining the final design of the Carbon Pollution Reduction Scheme and the medium-term, target range for reducing carbon pollution.

The Government has confirmed its commitment to a long-term goal of reducing Australia’s greenhouse gas emissions to 60 per cent below 2000 levels by 2050.

But its medium-term target range is to reduce emissions by between 5 and 15 per cent below 2000 levels by 2020, depending on what other countries do.

Garnaut Climate Change Review Final Report

The Garnaut Climate Change Review has released its Final Report.

The report provides recommendations on the policy options for Australia to most effectively respond to climate change.

The report recommends that the emissions trading system should be established at the earliest possible date, in 2010.

Supplementary Draft Climate Change Report released

The Garnaut Climate Change Review Supplementary Draft Report Targets and trajectories was released on 5 September 2008. The Final Report is due by 30 September 2008.

Report author Professor Garnaut proposes a 10 per cent reduction in emissions (or 30 per cent in per capita terms) by 2020 and an 80 per cent reduction (90 per cent per capita) by 2050 over 2000 levels.

The Carbon Disclosure Project

Carbon pollution reduction begins with with identifying and measuring carbon data and how to manage carbon. So the Carbon Disclosure Project by leading UK companies and IBM is of interest.

The Project has released a Best Practice Guide (pdf) to provide advice on how to successfully devise a corporate climate management response.