The Carbon Pollution Reduction Scheme: Issues Or The Regulator

Introduction

The introduction of a Carbon Pollution Reduction Scheme (CPRS) in Australia is now imminent. A Green Paper, which is a detailed policy position paper regarding the design and implementation of the CPRS, was issued by the Australian Government in July 2008 (Green Paper). A White Paper, including an exposure draft of the CPRS legislative package, is due to be released in December 2008. The expectation is that legislation will be introduced into Parliament by March 2009, the CPRS will commence in 2010 and the scheme regulator (Regulator) will be established in the third quarter of 2009.

Scheme governance will be a critically important element of the CPRS legislative package. The status, structure, functions and powers of the body that is tasked with administration and regulatory oversight of the CPRS will affect the scheme's efficiency, stability and, ultimately, its credibility. Therefore, particular care will need to be exercised in crafting the role