A few hours ago, Prime Minister Julia Gillard outlined the Government’s proposal for a carbon price in Australia to commence on 1 July 2012 – pending negotiations with other parties and the ability to pass legislation this year.
Saying a carbon price is the cheapest and fairest way to cut pollution and build a clean energy economy in Australia, the Government also said it will not shy away from the "difficult but vital economic reform".
An initial fixed carbon price will provide business a transition period to a cap and trade emissions trading arrangement linked to international carbon markets, allowing Australian businesses time to "understand their carbon liability and begin the transformation in a steady and purposeful way".
The Government says the Multi-Party Climate Change Committee have agreed the proposal should be released for community consultation and will continue to discuss other elements of the proposal including the starting level of the fixed price. The proposal will be available from the Government’s Department of Climate Change and Energy Efficiency web site.
Australian Greens deputy leader Senator Christine Milne released a statement after the announcement saying a carbon price will be good for the community in terms of addressing rapidly escalating energy price rises, that it will stimulate the economy, create jobs and help protect the climate.
"However, a carbon price on its own is not going to be enough to drive real change and job-creating innovation. We will need to encourage clean alternatives with supportive policies." said Senator Milne.
The Clean Energy Council welcomed the Government’s announcement, but warned that renewable energy programs will still be needed to deliver the cheapest transition to a de-carbonised economy.
