A major step towards a Clean Energy Future
Australia has taken a major step towards a clean energy future with Australia’s major greenhouse gas emitters now required to pay for the pollution they emit under the carbon pricing mechanism.
The carbon price which starts today means that in the year 2020, Australia’s carbon pollution will be at least 159 million tonnes less per annum than it would be without this policy – the equivalent of taking 45 million cars off the road.
The carbon price will force Australia’s biggest polluters to pay for their pollution and it will create incentives for them to reduce their emissions and invest in clean energy sources such as solar, wind, geothermal and natural gas.
Over half of the revenue raised will assist households with tax cuts, increased family payments and pensions, benefits and allowances. In most cases, this compensation will exceed price rises passed on as a result of the carbon price.
Lump sum household assistance payments have already been paid and these will be followed by increases in regular payments of family payments, pensions, and other Government allowances and benefits from next year.
These household payments are currently being rolled out and households who are most affected will continue to receive compensation. These assistance measures are permanent.
The Australian Government is protecting the rights of the consumer. Some businesses may try and make misleading claims about the impact of the carbon price on products. Consumers who have concerns about these issues can contact the ACCC.
According to scientific consensus, our planet is warming and it is important that we act now to cut greenhouse gas emissions. The carbon pricing mechanism, part of the Clean Energy Future Package, is the most efficient way to reduce carbon pollution. A carbon price will create incentives for large emitters to reduce carbon pollution.
The Government is also supporting jobs and competitiveness in industries with high emissions and strong international competition.
Businesses are being provided with a significant amount of assistance to help them manage carbon price impacts, and are being provided with strong incentives to invest in cleaner technologies, underpinning their future competitiveness.
The CCA will provide independent advice to the Australian Government on the performance of the carbon price and other initiatives. It will also make recommendations on the longer-term path that Australia should take in pursuit of its 2050 target.
ARENA will provide grants and financial assistance for projects focusing on renewable energy and energy efficiency technologies to make them more cost competitive. ARENA will administer $3.2 billion in existing Australian Government support for research and development, demonstration and commercialisation of renewable energy activities.
Individuals and businesses wanting further information about how the carbon price will affect them can find out more on electricity prices, Australian jobs, competitiveness and the economy, the everyday living prices and consumer rights and awareness.