For an overview of this deal, and to test some of the assertions, let’s turn to the Grattan Institute.
About 500 heavy polluting companies will pay a $23 per tonne carbon price from July 1 next year, under a plan unveiled by Prime Minister Julia Gillard. Affected businesses and workers will be helped, with $9.2 billion worth of assistance over three years. Low income households will also be compensated with a rise in the tax free threshold, from $6,000 to $18,000, and up to $338 per year extra for single pensioners. But will be compensation be enough and will the carbon price be effective in cutting Australia’s greenhouse gas emissions?
A visiting British expert on the economics of climate change, Michael Grubb, argues that countries with higher electricity prices generally use proportionally less energy. Professor Grubb also says that after six years of emissions trading, the energy sector in Britain is complaining about ‘uncertainty’ when it comes to pricing carbon. That’s why the Conservative prime minister, David Cameron, is proposing to introduce a carbon tax later this year.
Australia unveils plans for one of the world’s biggest carbon-trading schemes. Prime Minister Gillard intends to slap a $24 tax on every ton of carbon emitted by the nation’s companies. We’ll hear ask a leading voice in the business world whether this should be a global model?