Fossil Fuels

Australia to scrap carbon tax for trading scheme

Agence France-Presse July 15 2013.

SYDNEY — Key greenhouse gas emitter Australia on Sunday announced it will scrap its carbon tax in favour of an emissions trading scheme that puts a limit on pollution from 2014, a year earlier than planned.

The move is set to cost the government billions of dollars but Treasurer Chris Bowen said cuts would be made elsewhere to compensate with the Labor Party sticking to its plan to return the budget to surplus in 2015-2016.

Bowen confirmed media reports that the fixed Aus$24.15 ($21.90) per tonne carbon tax would be dumped in favour of a floating price of between Aus $6 and Aus $10 per tonne from July 1, 2014, to ease cost of living pressures for families and help support the non-mining sectors of the economy…

(Contributor’s note: The cracks are showing – let’s hope the SA government sticks to its guns implements the carbon tax in 2015 without further delays and watering down. Big business will always favour emissions trading over a carbon tax, because the cap and trade route generally doesn;t set the caps low enough to make a real difference – as can be seen from the CDM and ETS carbon prices of $1/tCO2e and Euro 4/tCO2e. The latest Australian proposal appears to include a floor price, but lets see if that sticks when election time approaches.))

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