Panel to Government on ETS – stay the course, but let's not rush

The Government is not expected to respond formally to the Caygill Review Panel's report into the Emissions Trading Scheme (ETS) until next year. But initial indications are that many – if not most – of the Review's ideas will be taken on board.

This Brief Counsel takes a practical, sector-based look at the Panel's principal recommendations.

Overview

The Panel takes as its starting point the need to strike a balance between steadily increasing the incentives for emissions reductions and managing the short-term economic costs.

Most of the key recommendations were well-telegraphed in advance, especially those relating to the extension of the transitional phase and the "scaling-up" of ETS obligations.