The latest on climate
A fixed-price carbon tax went into effect in July 2012 and applied to Australia's worst industrial polluters. It was to remain in place until 2015, at which point the cost of producing a ton of carbon would be determined by free market forces. Prime Minister Rudd has advanced the original timeline by a year. The emissions trading scheme will now begin on July 1 2014.
Source: SBS Factbox: Carbon tax around the world.
Source: SBS Factbox: Carbon tax around the world.
An emissions trading system basically means the government sets a limit on how much a pollutant such as CO2 may be emitted in Australia. The cap is allocated to companies in the form of emissions permits, which give them the right to emit a certain amount of the pollutant.
They can trade permits with in a market, but the total amount stays the same. Firms that need to increase their emission permits must buy them from companies that require fewer permits. This means permit buyers are paying a charge for polluting more, while sellers are being rewarded for reducing emissions.
That means the level of the pollution cap is crucial. At the moment, Australia has a target to reduce emissions 5% by 2020, with the option to increase up to 25%, depending on circumstances. The good news is that under this week's announcement, Australia will still have an independent Climate Authority that recommends targets in line with what the current climate science tells us is required.
Source: SBS Factbox: Carbon tax around the world.
They can trade permits with in a market, but the total amount stays the same. Firms that need to increase their emission permits must buy them from companies that require fewer permits. This means permit buyers are paying a charge for polluting more, while sellers are being rewarded for reducing emissions.
That means the level of the pollution cap is crucial. At the moment, Australia has a target to reduce emissions 5% by 2020, with the option to increase up to 25%, depending on circumstances. The good news is that under this week's announcement, Australia will still have an independent Climate Authority that recommends targets in line with what the current climate science tells us is required.
Source: SBS Factbox: Carbon tax around the world.
The good news is that investment in renewables remains strong. The Australian Renewable Energy Agency (ARENA) and Clean Energy Finance Corporation (CEFC) remain fully funded, and the Climate Authority remains in place to recommend reduction targets.
The move from a fixed carbon price to a floating price was legislated to happen in 2015-16. The early move to an ETS by the Government comes at a cost to the government, dropping $3.8 billion of expected revenue for the 2014-15 fiscal year. This brings both good news and bad news:
- Funds for biodiversity protection will lose $213 million over four years, while the Carbon Farming Futures program will lose $144 million.
- Money has been clawed back from coal-fired power stations. Funding for the Coal Sector Jobs Program has been marginally reduced, with a $186 million reduction from the $740 million in compensation -- there's still more than half a billion dollars in the budget that is going to be thrown at the coal industry to help them transition.
| Where we're at (Labor policy) | Coalition policy | Greens policy | |
| Overview of policy | The current government has announced a transition from a fixed carbon price to an emissions trading scheme one year earlier than planned, in July 2014. | Under a Coalition government, many initiatives set up by the current government will go. The Coalition plans to scale back staff in the newly created Climate Change department, and merge it with the Environment Department.
The hallmark of its climate policies is their "Direct Action" policy, a system which includes planting trees to sequester emissions, and voluntary programs for high polluters, businesses and landowners to reduce emissions. |
The Greens are committed to 25 - 40% reductions on 1990 levels by 2020, increase the Renewable Energy Target to 90% by 2030, and aim for net zero emissions by 2050. They are committed to the second period of the Kyoto Protocol. |
| Emissions Reduction | The current Government has committed to 5% - 25% cut from 2000 emissions levels by 2020. The possible 15-25% reduction depends on action from other countries, guided by the Climate Change Authority. The Government has a commitment to reduce emissions by 80% by 2050. |
The Coalition has committed to the 5-25% reduction on 2000 levels, with plans to review in 2015 to consider longer term target depending on the level of international agreement. Opposition Leader Tony Abbott has spoken out against the Emissions Trading Scheme as a method for doing so, calling it "a so-called market n the non-delivery of an invisible substance to no one." This despite John Howard declaring that he would be introducing "the world's most comprehensive emissions trading scheme" in a 2007 election debate with Kevin Rudd. |
The Greens do not support bringing forward emissions trading to 1 July 2014, and back a 90% renewable energy target for 2030. The Greens would increase Clean Energy Finance to $30 billion - $3 billion per year for ten years. |
| Renewable Energy Investment | The current Government is committed to a Renewable Energy Target of at least 20% by 2020, and to not review RET until 2016 at the earliest. The Clean Energy Finance Corporation was legislated in 2012, with funding of $10 billion over five years, to leverage private investment to deploy and commercialise large scale renewable energy and energy efficiency projects. | An Abbott government would review the Renewable Energy Target, and dismantle the Clean Energy Finance Corporation – the federal agency charged with overcoming capital market barriers to renewable energy, energy efficiency and low emissions technologies. An Abbott Government would also abolish the independent Climate Change Authority, which provides independent advice on all of the Australian Government's climate change initiatives. | The Greens are committed to a Renewable Energy Target of at least 20% by 2020, increasing the 2030 RET to as close to 100% as is possible. They will oppose any attempt to repeal the CEFC. |
| Kyoto Protocol | Australia is a signatory to second commitment period of Kyoto Protocol for 2020 reduction and intention to ratify. | Coalition has stated "in principle" support for second commitment period of Kyoto Protocol but no position on ratifications announced. | The Greens are committed to the second period of the Kyoto protocol. |