It looks like we have a plan …
From The Australian: Rudd signs off on emissions trading scheme compromise.
The highlights:
- Start delayed for 12 months
- Carbon permits will cost $10 per tonne of carbon in 2011-12
- Emissions reduction target of up to 25 per cent of 2000 levels by 2020 (subject to a broad global agreement)
- Additional support for Emissions Intensive Trade Exposed Industries — a “Global Recession Buffer”
- Establishment of the “Australian Carbon Trust” to better support voluntary action
The Australian Carbon Trust seems to have two parts; the Energy Efficiency Savings Pledge Fund and the Energy Efficiency Trust.
The Energy Efficiency Savings Pledge Fund will take the form of a web site that enables individuals to buy and surrender CPRS pollution permits (AEUs) by making ‘pledges’. These pledges will be tax deductible. It will be interesting to see what effect this has on the existing voluntary offset market.
The Energy Efficiency Trust will provide funding for businesses to undertake energy efficiency projects. “For example, the Trust could identify lighting improvements in a business that would cost $2 million to undertake. The Trust would cover this $2 million cost, with the business contributing nothing upfront. The business would then pass the energy cost savings from the lighting improvements back to the Trust at a commercial rate until the full $2 million with interest is paid back to the Trust. Once the upfront capital is paid back, the business keeps the ongoing cost savings.”
The Energy Efficiency Trust will be run in conjunction with The Carbon Trust, a UK-Government funded business that runs a similar scheme for the UK Government.
The legislation for the CPRS will be introduced when parliament resumes later this month. Given the changes above, it seems likely that it will be supported by the Coalition, but not the Greens, which will mean the Government will also need the support of independents Nick Xenephon and Steve Fielding.
Tags: cprs
