1. Updates – GHG Policy in Australia
Updates on progress to a Carbon cap and trade in Australia
Australia, one of the key countries has not been a part of the Kyoto Protocol for its own reasons.
It has been trying to take a clear stance on its own ambitions and targets for carbon emission
reductions – but has not given any positive sign so far. However, with the recent election results
that Australia may again move towards putting a price on carbon. Such a price on carbon is to
consist of some form of emissions trading scheme, rather than a carbon tax. Any such move has
the potential to clearly define and establish Australia’s climate change policy and strategy.
In the recently concluded elections, Climate change was one of the few areas with significant
difference between the policy platforms taken to the electorate the two major parties - the Labor
Party and the Coalition. Ultimately, the choice was between a promise to work towards pricing
carbon and a promise to combat climate change through direct government support for
emissions reducing activities. The approaches suggested by the 2 parties can be summarized as
under
Party Labor Party Coalition
Platform Building a community consensus on Creation of emissions reduction
carbon pricing to implement fund supporting projects for CO2
emission trading scheme in emissions reduction, jobs creations.
2012/2013.
Features/Issues Cynicism due to failure of CPRS Primary focus on soil carbon and
(Carbon Pollution Reduction agricultural practises change.
Scheme) twice through the senate.
Given the fractured mandate with no clear cut majority to any party it became clear from the
count that any party that ultimately formed government would have to work in the Senate with a
Greens party holding the balance of power from 1 July 2011. As no party had the majority required
to form government, many of the policy dichotomies between the major parties, including
climate policy, were thrown up in the air as the decision on which party would form minority
government came down to four independent members of Parliament and one Greens member.
Among these members, there is a wide support of pricing carbon, firstly through an interim
carbon tax and subsequently through an emissions trading scheme. Even with a member who is
a climate change sceptic, there is support legislating ethanol blending in transport fuels, though
this may be related to support for constituent cane growers than any climate change policy.
On 1 September the Greens and Labor signed an agreement that they would support Labor to
form minority government. The agreement commits the government to establishing a ‘well
resourced Climate Change Committee consisting of experts and representative ALP, Greens,
independent and Coalition parliamentarians who are committed to tackling climate change and
who acknowledge that reducing carbon pollution by 2020 will require a carbon price’. The

2. Updates – GHG Policy in Australia
support has come through a formal agreement. Though this agreement does not commit the
parties to action on climate change, Greens are expected to support moves to price carbon as
part of their platform of policies that included that ‘[a] price must be put on carbon pollution,
possibly as part of an enhanced Emissions Trading Scheme’. With all of the independents
supporting the minority Labor government supportive of pricing carbon in one form or another,
it is likely that an emissions trading scheme will be passed in the next term. The process agreed
between the Greens and Labor, the Climate Change Committee, will likely provide the pathway
forward in that regard. The earliest a scheme could be passed is July 2011 when the Greens take
control of the balance of power in the Senate.
The design of an eventual emissions trading scheme is likely to be influenced heavily by the new
political landscape. Whereas the CPRS was negotiated between Labor and the Coalition, resulting
in a scheme that gave significant exemptions for large emitters and powerful interest groups, the
current process is likely to result in a scheme that compromises with the new forces required to
pass the legislation; the Greens and the rural independents. This means that there will likely be
greater emissions reduction ambition in the scheme overall, and agricultural emissions are likely
to be brought into the scheme over a longer period of time. Further, it is likely that in the short
term more opportunities for carbon offsetting through changing agricultural practices is likely to
form a part of the broader policy landscape. Such a process is also expected to see rural
communities having greater development in renewable energy and clean energy infrastructure
as part of a $10 billion regional development deal.
It is more likely now than at any time since the decision to delay the CPRS that Australia will
ultimately move to having a price on carbon. It is more likely that this will consist of some form of
emissions trading scheme, rather than a carbon tax, given that there is still significant policy
momentum invested in the market based design which underpinned the CPRS, and that the key
independent and Green members consider an emissions trading scheme as the best long-term
option for pricing carbon. The issue which is still uncertain is when such a price may be imposed,
and whether the timing will remain 2012/2013 in accordance with the current Labor policy or
whether the Greens will manage to push something through Parliament after July 2011 when they
have the balance of power in the Senate.

3. Updates – GHG Policy in Australia
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understanding, establishing sound Environment Management Systems, and pursuing sustainable
business solutions through our various services to abate direct and indirect impact on ecological
balance.”
We have worked with companies across sectors enabling them to create carbon accounting,
monitoring and reporting systems. We have expertise in the areas of carbon accounting and
management, energy management systems, voluntary/compliance carbon markets, environment
management and sustainability and carbon branding.
To know more about us, please visit http://www.agenya.in
To schedule a meeting or a discussion with us, do reach us on
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Reference
1. http://www.lexology.com/library/detail.aspx?g=c167140b-4279-40f9-966a-1251be1b10c3, an
article by Norton Rose.