In brief - Advantages to businesses of new carbon regime not
assured
The floating carbon price to be introduced in July 2014 may
benefit businesses through reduced costs for electricity,
refrigerants and fuel. However, these benefits could be offset by a
volatile EU ETS carbon price and by possible government responses
to reduced revenue.
Carbon price to be linked to EU Emissions Trading Scheme
price
On 16 July 2013, Prime Minister Kevin Rudd announced that the
government
had decided to "terminate" the carbon tax. Despite
the definitive language, the policy details make it clear that the
price on carbon won't get dropped altogether.
True, on 1 July 2014, the price of carbon permits will no longer
be set by the Australian government at $25.40 a tonne. However, on
that date, it will still "float" and be linked to the EU
Emissions Trading Scheme (ETS) price, which the government expects
to be about $6 a tonne.
