Draft legislation to bring forward ETS released

The Rudd government has released an exposure draft of legislation to implement an earlier start to emissions trading. On 16 July, the government announced it would terminate the carbon tax and bring forward the emissions trading scheme to 1 July 2014.

The draft amendments have been published to enable consultation with businesses, other carbon market participants and interested parties about how the early move to emissions trading will occur. The amendments are mainly procedural and technical in nature.

An early start to emissions trading is expected to result in a lower carbon price. Based on current market conditions, the price is expected to be around $6 in the next financial year, 75% lower than under the current fixed price arrangements.

An earlier start to emissions trading will also mean Australia introduces a cap on the carbon pollution of our largest emitters one year earlier.

The government is maintaining complementary policies - including the legislated Renewable Energy Target, Clean Energy Finance Corporation and Australian Renewable Energy Agency - that will work with the carbon price signal to drive investment in renewable energy and low-emissions technologies.

Stakeholders are invited to make submissions on the legislation by 5 pm on Thursday, 15 August 2013. Submissions can be made to the Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education.