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CCA modeling predicts carbon price fall


The body created to provide advice on the carbon pricing mechanism and other Federal climate change policies has predicted a sharp decrease in the rate of the carbon price once the fixed period ends at the price is floated in 2015.

The Climate Change Authority has predicted that July 2015 will see a sharp fall from the fixed price of $25.40 a tonne of CO2 to $10.72. This would see a drop in Federal revenue of approximately $4 billion. This runs contrary to Government predictions of an increase in price once the price floats.