ETS: Coalition's proposed amendments

16 Nov 2009, 1:41 pm   -   Source: SBS
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The Coalition says coal-fired generators must be better compensated for loss of value they experience from the Carbon Pollution Reduction Scheme. (AAP)

The Coalition says coal-fired generators must be better compensated for loss of value they experience from the Carbon Pollution Reduction Scheme. (AAP)

Amid so much debate on Australia's emissions trading scheme, we take a look at the Opposition's proposed amendments.

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The Coalition claims its proposed amendments to the government's Emissions Trading Scheme will protect key export industries such as farming, coal mining, natural gas and aluminium.

The government has committed to introducing a Carbon Pollution Reduction Scheme (CPRS) by 2011 as the primary mechanism for reducing greenhouse gas emissions.

The re-branded ETS scheme aims to curb emissions by 5 percent by 2020, or by up to 25 percent if there is a deal at Copenhagen.

The scheme is currently being discussed in parliament, with the Opposition pushing for several amendments and claiming that in its current form the scheme would cost jobs and investment.

The proposed amendments are outlined below:

Trade exposed industries

• Amend the CPRS to provide a single level of assistance for emissions intensive trade exposed (EITE) industries at 94.5 per cent until 2015 and 90 per cent thereafter.

•Lower the threshold for assistance from the CPRS proposal of 1000 tonnes of CO2 per $1 million of revenue to 850 tonnes of CO2 per $1 million.

• Continue to provide assistance to Australian emissions intensive trade exposed (EITE) industries at 90 per cent until 80 per cent of their international competitors have also implemented carbon abatement measures.

• Include primary food processing such as dairy and meat in the EITE scheme.

Agriculture

• Permanently exclude agricultural emissions from the CPRS. The government has agreed to this key stone amendment on December 15.

• Obtain Government agreement to introduction of an agricultural offset scheme in line with similar offset schemes to be introduced in comparable economies such as the US and EU.

Coal mine emissions

• Exclude coal mine fugitive emissions from the CPRS.

*Fugitive emissions from open cut coal mines arise when coal and associated strata are broken and disturbed as part of the mining process, liberating the seam gas that might be trapped within coal seams.

Lower electricity prices

• The Coalition advocates an intensity-based cap-and-trade model for generators, saying this would greatly reduce the burden on small and mid-sized businesses, which receive no compensation for higher power bills under Labor’s proposals.

• The Coalition claims that under the CPRS retail electricity prices will rise by close to 20 per cent in the first two years, while under an intensity approach, retail electricity prices would rise by less than 5 per cent in the first two years.

Compensation for electricity generators

• The Coalition says coal-fired generators must be better compensated for loss of value they experience from the CPRS, to ensure security of electricity supply and enable them to transition to lower emission energy sources.

• The Coalition calls permits to coal-fired generators to be increased to from 130 to 390 million over 15 years.

• The Coalition supports creation of a voluntary offset market in advance of the introduction of the CPRS, and amending the CPRS to ensure voluntary abatement leads to a lower national level of emissions.

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Your Comments

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theraccoon - from Bathurst, 3 years ago

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