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Greg Hunt hails 'stunning' result of first carbon auction


Source: AFR, 23 April 2015

Forty-three companies will be paid $660 million to eliminate 47 million tonnes of carbon that would otherwise enter the atmosphere under the first auction by the Abbott government's $2.55 billion emissions reduction fund.

The average price per tonne of abatement was $13.95, which federal Environment Minister Greg Hunt described as a "stunning result" that exceeded the government's expectations. He said it was a cheaper and more effective method for reducing carbon than Labor's carbon tax.

Critics said the first auction had used about 25 per cent of the Emissions Reduction Fund in one hit, which raised the prospect the federal government will have to top up the fund if it wants to meet carbon reduction targets by 2020.

Carbon farmers and landfill operators were the bulk of the first auction's 144 projects, with big industry, including energy companies and aluminium smelters, waiting to see the results of the first auction before applying for future auctions.

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