Last week when the European Parliament voted down a proposal to prop up the EU Emissions Trading System’s languishing carbon price by postponing the sale of 900 million emission allowances until the back-end of this decade the price fell to below AU$4. There are obvious concerns about the legislated linking of the Australian carbon price to the EU scheme in mid-2015. Treasury had forecast an EU price of at least $29 in 2015.
Frustration at the nonsense purveyed on Madonna King’s program inspired me to send her an email, stating the main features of the Clean Energy Future (CEF) package in three simple points. In this post I give an expanded version so you can check and let me know if I’ve got it right. The scheme does seem to me to have an elegant simplicity about it together with a flexibility that bespeaks careful design.
First, the government is selling permits to pollute, not imposing a tax. About 500 of the biggest polluters will have to buy permits to dump their waste carbon into the atmosphere. Annabel Crabb quotes Gillard as saying:
“Around 500 big polluters will pay for every tonne of carbon pollution THEY put into OUR atmosphere.”
As Crabb says:
WE are getting those polluters to pay for what THEY do to US.