Australia to put price on carbon from July 2012
“A carbon price mechanism could commence with a fixed price (through the issuance of fixed price units within an emissions trading scheme) before converting to a cap-and-trade emissions trading scheme,” said the committee’s proposal.
If parliament approves the proposal, Australian companies would be able to start trading emission permits at or below the fixed price from next year.
Australian firms will not have access to international offset credits such as certified emissions reductions (CERs) during the fixed price period, but they will be allowed after the country moves to a cap-and-trade scheme.
The proposal, the result of a deal between the ruling Labor party and the Greens, calls for the fixed price to increase annually at a set rate.
"The Greens' agreement with the government sets out elements of a transition to emissions trading down the track once the parliament can agree on emission reduction targets,” said Christine Milne, a Greens senator and member of the committee.
The proposal calls for transiting to a carbon trading scheme within three to five years.
A review one year ahead of the planned date for the transition will evaluate whether Australia should make the switch to carbon trading.
The energy sector, transport, industrial emissions and waste will be covered by the carbon price, but agriculture and forestry are excluded.
“There is agreement to support change in the land-use and forestry sectors but details are still under consideration,” Milne said.
By Stian Reklev in PontCarbon.com.


