The Government's recent announcement to bring forward the
carbon credit trading scheme, to begin from 1 July 2014, has a
number of ramifications for households and businesses alike.
Although specific details of the proposal have not yet been
released (and by all accounts, legislation with respect to these
changes may be some way off yet), it appears as though the effect
will be as follows:
- According to the Government, households will be slightly better
off, although the opposition's modelling suggests
otherwise.
- The cost of carbon will fall from $24 per tonne to
approximately $6 per tonne, in line with the current cost of
European carbon credits. This is good news for the large industrial
companies and miners however there is conjecture between the
Government and the opposition regarding where the price of carbon
will end up over the next few years. The opposition suggests that
the price will climb, by deliberate design, back up to and beyond
the current $24 per
