Carbon price bill passes through lower house

On 12 October 2011, Australia joined the European Union and New Zealand by passing through the House of Representatives one of the most comprehensive environmental policies in Australia’s history.

Australia is one of the top five per capita polluters in the world as a result of heavy reliance on the coal industry for the energy needs of the country. In addition, Australia is highly vulnerable to climate change as the driest continent in the world and with the majority of our population concentrated to the coastal belt. As such, it is now critical for Australia to act towards a low to zero carbon economy.

The carbon price mechanism acts as an incentive for heavy polluters to move towards low emissions technology and will provide opportunities for the land sector to be involved in voluntary and non-voluntary carbon markets.

This ground-breaking Clean Energy legislative package will introduce a price on carbon emissions, promote the renewable and clean energy sector, enhance energy use efficiency and reduce carbon emissions in the land sector through enhanced carbon sequestration on the land.

The Clean Energy legislative package will tax the countries top 500 polluters for their emissions at the rate of $23 per tonne of carbon for three years as of July 2012. From July 2015 the carbon price will be determined by a market system through an emissions trading scheme.

The carbon tax intends to cut emissions from 2000 levels by five per cent by 2020 and 80 per cent by 2050.

The bills will now be introduced to the Senate with hopes of passing through the Upper House by the end of the year.