Citola Blog
Australian Government confirms Carbon Price
The Australian government has today announced that there will be a carbon price from July, 2012. It is being positioned as a “vital economic reform to move Australia to a clean energy nation” which it is. This differs from the previous 'hearts and minds' positioning statement and the often polarising climate change response. Ultimately, both are true and it will drive economic and sustainable change.
What this means for Citola is there will be increasing demand for our Australian carbon products. Citola has unique capability and ‘operational engine’ to scale and meet the increasing demands of the market. See Citola: Compliance Products.
The full announcement is below:
The Prime Minister Julia Gillard today outlined the Government’s plan to cut pollution, tackle climate change and deliver the economic reform Australia needs to move to a clean energy future.This is an essential economic reform, and it is the right thing to do.
The two-stage plan for a carbon price mechanism will start with a fixed price period for three to five years before transitioning to an emissions trading scheme.
The Government will propose that the carbon price commences on 1 July 2012, subject to the ability to negotiate agreement with a majority in both houses of Parliament and pass legislation this year.
A carbon price is a price on pollution. It is the cheapest and fairest way to cut pollution and build a clean energy economy. The best way to stop businesses polluting and get them to invest in clean energy is to charge them when they pollute.
The businesses with the highest levels of pollution will have a very strong incentive to reduce their pollution.
The Government will then use every cent raised to:
- Assist families with household bills;
- Help businesses make the transition to a clean energy economy; and
- Tackle climate change.
The Government will not shy away from this difficult but vital economic reform to move Australia to a clean energy nation. The global economy is shifting.
Right now, Australia is at risk of falling behind the rest of the world. The longer we wait, the greater the cost to the economy, and the greater the cost to Australian jobs.
An initial fixed carbon price will provide businesses with a stable and predictable platform to transition to a ‘cap and trade’ emissions trading scheme that will be linked to international carbon markets.
This will give businesses time to understand their carbon liability and begin the transformation in a steady and purposeful way.
Today’s proposal is the result of hard work by the Multi-Party Climate Change Committee which has been meeting co-operatively, determined to help deliver this crucial economic reform.
The framework has been agreed by Government and Greens members of the Multi-Party Climate Change Committee (MPCCC). The other members, Mr Tony Windsor and Mr Robert Oakeshott, have agreed that the proposal should be released for community consultation.
The Committee will continue to discuss other important elements of the proposal including the starting level of the fixed price, any phasing in of sectors of the economy, and assistance for both households and industry.
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