Introduction
The Australian Government was seeking to legislate an emissions trading scheme as part of an effective framework for meeting the climate change challenge.
Latest News
On 27 April 2010 the Government deferred Emissions Trading until post 2012
Prime Minister Kevin Rudd says he has been forced to put his emissions trading scheme (ETS) on ice because of the Coalition's opposition and the slow pace of international climate change action.
Mr Rudd has confirmed the ETS has been shelved until at least 2013 so the Government can consider what the rest of the world will do beyond the expiration of the Kyoto protocol.
He says the Government remains committed to implementing the scheme but the Opposition's refusal to back it and the lack of international progress in the wake of the Copenhagen talks meant it had to be delayed.
"The Liberal Party have executed a complete backflip in their historical position in support of an ETS," he said.
"The rest of the world is being slower to act on appropriate action on climate change.
"It's very plain that the correct course of action is to extend the implementation date.
"What we need to make a judgment of is what happens post-2012 and what the rest of the world is doing, because the rest of the world and what they do is pretty important in terms of Australia's future actions as well."
source ABC.
Background Materials:
The Government's proposed CPRS legislation was introduced into the Australian Senate for the second time in November 2009. On the 2nd of December the Senate voted against the CPRS Bills by 41 votes to 33.
Policy Timeline
|
Event |
Timeline |
Related Documents |
|
Senate voted against CPRS
legislation |
2 December 2009 |
CPRS Legislation |
|
CPRS legislation reintroduced
to the Parliament |
22 October 2009 |
CPRS Legislation |
|
Senate voted against CPRS
legislation |
13 August 2009 |
CPRS Legislation |
|
CPRS legislation introduced to
Parliament |
14 May 2009 |
CPRS Legislation |
|
White Paper released |
15 December 2008 |
White Paper |
|
The Garnaut Climate Change Review
presented final report |
30 September 2008 |
The Garnaut Climate Change Review |
|
Green Paper released |
16 July 2008 |
Green Paper |
Implementation Delay Announced 4 May 2009
The Australian Government announced its decision to delay the introduction of the CPRS until July 2011. This has been done to allow Australia more time to recover from the impact of the current global financial crisis.
For the first year of the Australian CPRS a fixed price for carbon will be set at A$10/tCO2-e. Full trading will start in the 2012-13 year. In 2010 the price caps for the 2012-2013 and 2013-2014 years will be set out in regulations.
The price cap will be in place for four years from 2012-13, rising at five per cent in real terms (calculated using the CPI), and the future shape of the permit price cap will be reviewed at the first independent review, which will occur by the mid 2014, in line with the original White Paper timing.
In addition, both categories of polluters will receive an increased quota of free permits ("Global Recession Buffer"):
- Trade exposed heavy polluters will get their free permit quota raised to 95% from 90% and
- Second category polluters will get their free permit quota
raised to 70% from 60%.
These free permit levels will be available for the first 5 years.
The Rudd government is committed to the passage of the ETS legislation by mid 2009.
The Australian Government has also announced the aim to reduce Australia’s emissions by 25% of 2000 levels by 2020 from previously 5 to 15% of 2000 levels. This is however conditional and will depend on international action.
The Australian Governments says that these changes have been made to meet the opposition and to enable it to get the CPRS legislation through the Senate and Parliament before the COP meeting in Copenhagen in December 2009
- More information on the delay is available here: http://www.climatechange.gov.au/whitepaper/measures/index.html
CPRS Draft Legislation Released 10 March 2009
The Exposure draft of the Carbon Pollution Reduction Scheme Legislation (The Bill) was released on the 10th of March 2009.
The Bill follows on from the White Paper (released in December 2008) and the Green Paper (released in July 2008). The Bill is the culmination of a process involving broad consultation and the White paper was published having taken into account input from more than one thousand submissions.
The Bill and accompanying fact sheets can be found here
Submissions close on the 14th of April 2009.
Australian Emission trading Scheme Design Finalised
The Australian Government released the White Paper on Monday 15 December 2008. The paper outlines the final design of the Carbon Pollution Reduction Scheme and the medium-term, target range for reducing carbon pollution.
This paper follows from the Green Paper, released in July 2008, which canvassed options on the design on the scheme. It takes into account the outcomes of a broad consultation and input from more than one thousand submissions.
For more information refer to the
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The timetable for implementation of emissions trading in Australia is shown below:
| Date | Stage |
|
July 2008 |
Public release of the Green Paper on scheme design |
|
July to September 2008 |
Phase 2 consultation on the Green Paper |
|
December 2008 |
Public release of exposure draft of legislative package |
|
December 2008 to February 2009 |
Phase 3 consultation on exposure draft legislation package |
|
End 2008 |
Firm indication by Government of planned medium-term trajectory for the scheme |
|
March 2009 |
Bill introduced into Parliament |
|
Mid-2009 |
Government aims to achieve passage of bill by Parliament at this time |
|
During 2009 |
Phase 4 consultation on emissions trading regulations |
|
3rd quarter 2009 |
Act enters into force; scheme regulator established |
|
2010 |
Emissions trading now defered |