Australias secret ETS starts in five weeks
Source: The Australian, 23 May 2016
Quietly, surprisingly, Australia’s climate change policy has become a bipartisan emissions trading scheme, or ETS … well, almost. The parties might try to manufacture differences for the election campaign, although they haven’t yet, and anyway they don’t really exist.
From July 1, coincidentally the day before the election, the Coalition’s “safeguard mechanism” within its Direct Action Plan will come into force.
One-hundred and fifty companies, representing about 50 per cent of Australia’s total carbon emissions, will be capped by legislation at their highest level of emissions between 2009-10 and 2013-14.
If they emit less than their caps, they will get credits, called Australian Carbon Credit Units (ACCUs), which were created by the Gillard government’s 2011 legislation; if they emit more, they have to buy ACCUs on the market.
The caps specifically include the electricity sector and the ACCUs are “financial products” under both the Corporations Act and the ASIC Act, and can be traded, so an ETS market will be established from July 1.