Carbon Price Package Announced

A welcome first step on our path to a Renewable Energy Future

After many years of campaigning for action on climate change in Australia, yesterday’s announcement of a carbon price and additional measures is a welcome relief.

Climate Action Newcastle, along with hundreds of other groups across Australia, and many, many thousands of people, have been campaigning hard not only for a price on greenhouse pollution but also for reliable funding for the renewable energy industry.

We’re particularly pleased that the MPCCC have agreed to establish a ‘Clean Energy Finance Corporation’ to finance renewable energy to the tune of $2 billion per year.

Of course there are many aspects of the scheme that we find difficult to accept, however the task before us right now is clear.  We need to publicly show our support for action on climate change, and a price on pollution.

Tony Abbott, Barnaby Joyce, Ralph Hilman, Christopher Monckton and their merry band will be as ferocious as ever from here on until the legislation is past later this year. 

It is up to us to show the Government, the media, and the Opposition that the clear majority of people support action on climate change, that the package on the table is the best policy available to our parliament at this stage, and that it’s time to get on with it.

Here’s where you come in!

To counter the spin, fear, and misinformation of those with an interest in seeing the carbon price defeated, its essential that we’re heard in local media this week.

The challenge, should you decide to accept, is to:

1. Write a letter to the editor of all newspapers.  Newcastle Herald email for letters letters@theherald.com.au (but please don’t limit your self to the Herald).
2. Call local radio stations (1233, KOFM, NXFM, 1143, 2NUR & more), show your support for climate action and your support for a price on pollution.

We will send out a more detailed analysis of the package later in the week however on the following page you will find a brief summary of the major elements of the package.

For a useful summary prepared by Crikey (with the benefit of being inside the lockup!) go to http://www.crikey.com.au/2011/07/10/carbon-tax-gillards-clean-energy-future-at-a-glance/

For full details of the Government’s Plan go to www.cleanenergyfuture.gov.au

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Climate Action Newcastle meets on the 1^st & 3^rd Wednesday of every month from 6:30pm at the Hunter Community Environment Centre (HCEC), 169 Parry Street, Hamilton East. We hope to see you there.

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The package at a glance

Clearly there is significantly more detail that that outlined below

The Carbon Price/ETS

• Carbon price to start at $23/tonne rising by 2.5% + inflation
• Emissions Trading to commence in July 2015 (with a price floor, or minimum price)
• Australia’s emissions reduction target to be legislated at 80% reduction on 2000 levels by 2050
• A new Climate Change Authority to be established to advise the parliament on future targets and caps in line with the science, providing scope for more ambitious reduction targets.

Scope or Coverage

• Roughly 60% of Australia’s domestic emissions will be covered including: Stationary energy, industrial processes, fugitive emissions, emissions from non-legacy waste
• Agriculture, light commercial and household transport not covered
• Other transport to face reduced business fuel tax credits outside agriculture (not agreed to by the MPCCC, only the Government)
• Aviation to face higher excise
• Productivity Commission to review fuel excise arrangements regarding emissions intensity
• No use of international permits >2015; maximum of 50% under an ETS

Renewable Energy

• The establishment of 2 new independent renewable energy bodies:

1.       ARENA (the Australian Renewable Energy Agency) will roll together approximately $3.2B in existing renewable energy funding under one body.

2.       The Clean Energy Finance Corporation will administer $2 billion per year over 5 years of new funding for renewable energy. (We are concerned that half of this money may be allocated to non renewable energy such as gas, this will be one to watch)

Financial Impacts

• Increase of $9.90/week for the average household with $10.10/week average household assistance delivered through (amongst other measures) increased pension payment, senior supplement, family tax benefits and a significant increase in the tax free threshold to approximately $18,000.

Compensation

• $9.2 billion industry compensation package
• Emissions Intensive Trade Exposed Industry EITEI) assistance:

1.       94.5% of free permits for industries with average baseline of a minimum 2,000t CO2-e/$m revenue or 6,000t CO2-e/$m value added

2.       66% of free permits for industries with average baseline of a minimum 1,000t CO2-e/$m revenue or 3,000t CO2-e/$m value added

3.       50% for LNG industry

• EITEI assistance guaranteed for 5 years, however the Productivity Commission will review levels of assistance and recommend a move to a more evidenced based approach.
• $300 Million Steel Industry Package (this was not agreed to by the MPCCC, only Government)
• $1.26 Billion Coal Mine Package (this was not agreed to by the MPCCC, only Government)
• There will be money to buy out 2000MW of the dirtiest generation capacity by 2020 (likely 2 brown coal fired power stations)