The Hon Greg Combet AM MP
Minister for Climate Change and Energy Efficiency
Statement - Treasury Modelling on a carbon price
Joint media release
The Hon Wayne Swan MP, Deputy Prime Minister and Treasurer
1 April 2011
GC 11/78
We welcome further evidence today that pricing carbon is the cheapest and most effective way of dealing with dangerous climate change.
The advice from Treasury recommends a broad-based, cap-and-trade emissions trading scheme (ETS) with a fixed price transition period. This is what the carbon price framework provides.
The Gillard Government is determined to create a clean energy economy at least-cost, and that is precisely what a carbon price will deliver, as we learn again in these documents.
No final decisions on the starting price or assistance have been taken and therefore it is far too early to speculate on any potential price impacts.
The figures released today under FOI were created to promote discussion within the Government even before a decision was taken on the current Carbon Price Framework. They were based on the parameters and coverage of the Government’s former Carbon Pollution Reduction Scheme.
Until the final design and modelling have been settled, anyone who uses these figures to scare families about prices is engaging in a dishonest, misleading scare campaign.
Of course, in developing our policy it is appropriate the Government inform itself about options, including those put forward by other advocates.
The Government has commissioned Treasury Modelling to be done on the carbon price that the Government is developing. This will include information on the price impacts of that carbon price. The Government has already committed to publicly release these results.
The Government has committed to use every cent raised by the carbon price, which will be paid by the biggest polluters, to support households, support jobs and tackle climate change.
We will continue to consult with the community over the development of the carbon price.
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