The Multi-Party Climate Change Committee has proposed a carbon price leading to an emissions trading scheme.
The carbon price is to take effect from July 1, 2012. A fixed price will operate for 3-5 years, after which a full cap and trade emissions trading scheme will take its place.
Details of the Carbon Price Mechanism are shown below.
Statement from Prime Minister Julia Gillard and Climate Change and Energy Efficiency Minister Greg Combet.
Climate change framework announced
The Prime Minister Julia Gillard today outlined the Government’s plan to cut pollution, tackle climate change and deliver the economic reform Australia needs to move to a clean energy future.
This is an essential economic reform, and it is the right thing to do.
The two-stage plan for a carbon price mechanism will start with a fixed price period for three to five years before transitioning to an emissions trading scheme.