Australian ETS to link up with world's largest ETS
The Hon Greg Combet AM MP - Minister for Climate Change and Energy Efficiency, Minister for Industry and Innovation
27 November 2012
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Legislation passed by Senate last night will enable Australia and Europe to begin linking their emissions trading systems.
As a result of this legislation, Australian emitters which are liable for the carbon price will have broad access to the global carbon market.
Businesses can now purchase permits under the European Union Emissions Trading System to use for compliance under Australia's system from 2015.
This will provide flexibility to businesses with operations in both Australia and Europe, which will reduce compliance costs.
Linking emissions trading schemes broadens cost-effective abatement options and ensures emissions are reduced at least cost. This benefits Australia's businesses and economy.
From 2015, Australia will have the same carbon price as that applying in 31 other countries with a combined population of more than 500 million people - the same carbon price as our second largest trading partner.
Before the carbon price started on 1 July, the Opposition Leader claimed it would cause wholesale wealth destruction, the loss of hundreds of thousands of jobs and the closure of hundreds of business.
We are now 150 days into carbon pricing and unemployment is low, inflation is low, growth is solid, investment is strong and the emissions-intensity of our economy is declining.
Price impacts have been modest and the Gillard Government has provided households with permanent assistance through tax cuts, higher Family Tax Benefits and increases in pensions and other benefits.
Australians now have the lived experience of pricing carbon and can judge for themselves the Opposition's aggressively negative fear campaign and lack of any credible policies to tackle climate change.
Media contact: Mark Davis, Gia Hayne 02 6277 7920
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