The Prime Minister Julia Gillard has outlined the Government’s carbon price mechanism, which it plans to establish mid next year.

 

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.

 

An initial fixed carbon price will provide businesses with a platform to transition to a ‘cap and trade’ emissions trading scheme that will be linked to international carbon markets, which is designed to give businesses time to understand their carbon liability and begin the transformation in a steady and purposeful way.

 

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.

 

The document outlining the proposed carbon price mechanism is available below.

 

Interested parties who wish to provide input on this approach should contact: This email address is being protected from spambots. You need JavaScript enabled to view it., or write to:

 

The Multi-Party Climate Change Committee Secretariat
GPO Box 854
Canberra ACT 2601
Australia

 

Further information in relation to this proposed approach is available at www.climatechange.gov.au