What exactly is the climate change plan?

15 Dec 2008, 1:02 pm   -   Source: AAP
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What are the key points of the government's climate change plan, and what exactly is emissions trading?

Key points in the government's climate change plan:

* Australia has set a target of a 5-15 per cent reduction in emissions by 2020.
* If an effective global pact on climate is signed, Australia will go with the 15 per cent cut.
* Otherwise, Australia will go with the 5 per cent cut.
* Emissions trading will start on July 1, 2010.
* The scheme will be more generous to business than first planned, with more companies to get free permits, and more of them available.
* Household electricity and gas bills will rise by $6 a week. 
* Low-income households will be fully compensated, and many middle income households will get compensation.
* The coal industry will get more than $4 billion in compensation.

Emissions trading - how it works:
 
* Cap-and-trade trading mechanism sets a price for the right to generate carbon pollution.
* Initial starting price estimated at $25 per tonne of carbon, capped at $40 a tonne, increasing annually by 5 per cent above inflation until 2014-15.
* Companies buy or are given free permits, which are tradable.
* Number of tradable carbon pollution permits will be equal to the cap, which is the limit on aggregate annual emissions.
* No limit on emissions from individual sectors - firms or facilities and companies are free to emit at whatever level they choose.
* Companies surrender permits for each tonne of carbon they emit.
* Scheme due to start in July 2010.
 

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Your Comments

Mr

R. Condick - from beldon perth, 3 years ago

The reduction phaseout of cfcs was not due to the ozone depletion, but due to the patents running out so new gases had to be used (which used more energy = more co2), good profit for the chemical co. and energy suppliers.
The world is at an 11 year peak of sunspot activty (gets warmer here).
I worked for an energy systems suppiler, and they woud not sell windpower or solar enery solutions as there was not enough profit in it.

Rudd the Charitable PM

Sasa - from Newcastle, 3 years ago

The Australian people are treated as sheep.
The big polluting industries are preparing to pass on the cost to taxpayers for the free permits and goverment (/taxpayer's) subsidies for losses they haven't even had?
That's charity on white paper from Rudd, not a plan to tackle climate change.

Mr

Chambers D - from Mt Hutton Newcastle, 3 years ago

Tackle the cause not the problem.Clean coal technology,create work in Australia. Dramatically reduce the need for oil, pursue hydrogen motive power ,ready available today and used in Israel and Calofornia USA.

Emissions Trading

Lorraine - from Altona Meadows, 3 years ago

a 5% target = a betrayal of trust

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