Higher emissions pricing needed now - Productivity Commission

The Productivity Commission has underscored the need for "early, strong action" in the form of higher emissions prices "from now to 2030", in its low emissions economy prescription, released today.

The Commission has put its weight behind what is known as the "two baskets" approach. This would set a net zero target for long-lived greenhouse gases (GHGs) - CO2 and nitrous oxide – but would seek only to reduce short-lived GHGs like methane.

Broad strategy intact

The Commission's broad strategy has survived the second consultation round. This strategy relies on a carbon price of between $75 and $200 per tonne of CO2e equivalent and some major changes across the economy, including: