Carbon price changes – cold comfort for coal

Introduction

The Government has continued its commitment to reduce Australia's carbon pollution through a carbon price. The 2013 Budget continues the roll out of the Clean Energy Future Package and the transition to an internationally-linked emissions trading scheme from 2015, but with some changes.

The changes have largely been dictated by the impact of a reduced forecast of the carbon price coupled with a reduction in the overall projected total Commonwealth Government revenue. The collapse of the European carbon price in mid-April has caused the Government to revise the carbon price projection in 2015-16 from $29.00 a tonne in 2015 to $12.10 a tonne. The revised permit price is estimated to reduce the carbon price revenue by around $6 billion over the four years from 2012-13 to 2015-16.¹