According to the documents, the delegates concluded that a process of fiscal consolidation would be the key solution to the crisis, involving country-specific ideas with central coordination…presumably by the G20 itself. Although the delegates evidently discussed the need to address the sovereign debt crisis “through cutting expenses and not through increased taxes,” that statement is immediately followed in this attendee’s notes by the idea of introducing carbon taxes.
AEU price cap
Scheme participants will have to pay the market price for permits from 1 July 2012 subject to the following price caps. In 2012–13, an AEU’s price will not be above $40 plus five per cent real growth for each of the years 2010–11 and 2011–12. The proportional increase in the price cap is known as the indexation factor. In each of the three years thereafter, the price cap will rise by this indexation factor for that particular year, applied to the previous year’s price. The price cap for a particular year will apply until 15 December of the compliance year, and caps will cease on 15 December 2016.
The government will sell an unlimited amount of permits at the price cap to liable entities only. The permits sold under these arrangements cannot be resold or banked. They are automatically surrendered after issue and can only be used to acquit that entity’s liability for that year.
Garnaut Climate Change Review.
National Emissions Trading Taskforce.
New South Wales NSW Greenhouse Gas Reduction Scheme.
European Union Greenhouse Gas Emissions Trading Scheme.
International Emissions Trading Association.
International Council for Capital Formation—climate change policy.
S. Smith, Greenhouse gas emission trading, Briefing paper, no. 2/07, New South Wales Parliamentary Library Research Service, February 2007.
L. Nielson, Emissions—who is trading what?, Background note, Parliamentary Library, 15 August 2008.
N. Markovic and N. Fuller, Climate change negotiations, Background note, Parliamentary Library, 26 August 2008.
The EU emissions trading scheme
The Australian scheme
International emissions trading schemes
The the Australian Climate Change Regulatory Authority (the Authority) will be required to release market relevant information on the supply of AEUs and liable entities’ requirements for these units in a timely manner.
Penalties and compliance
The scheme’s governing body, the Authority, will be provided with a range of compliance, anti–avoidance, investigative and enforcement powers and a range of mechanisms, including civil penalty and criminal provisions, to respond variously to non–compliance with the CPRS. Directors and officers of a company found to be in breach of certain provisions of the proposed CPRS Act may also be fined. Fraudulent conduct in relation to the issuing of AEUs, may result in the offender being required to relinquish those units (see Part 13 of the CPRS Bill). Anti–avoidance provisions are also proposed in relation to the exemptions from liability for small facilities (generally, those emitting less than 25 000 tonnes of CO2 per year). These are designed to capture entities that pursue artificial means to keep their facilities below this threshold so as to avoid CPRS liability.
Emission permits fixed price of $10 for first period (1 July 2011 to 15 December 2012). An upper price limit of $40 per permit (indexed) for next period (succeeding 4 years)