Clean Energy (Unit Issue Charge—Auctions) Amendment Bill 2012 – passed

The seven bills passed the Senate, and the Clean Energy (Unit Issue Charge—Auctions) Amendment Bill 2012, without amendments, by 34 votes to 28 on Monday night, 26 Nov 2012. The Australian ETS will link to the EU ETS and all that is required for law is Royal Assent.

What is a bill? A bill is a proposal for a law or a change to an existing law. A bill becomes law (an Act) when agreed to in identical form by both houses of Parliament and assented to by the Governor-General.

Reference source: http://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r4896

Progress of the amendment bill include:

  • House of Representative introduced and read first time 19 September 2012 to six other presentations and the third reading agreed on 11 October 2012;
  • SENATE introduced and read first time 11 October 2012 to eight other presentations where the text of bill as passed both Houses was announced on 26 November 2012.

Some advocates for the carbon price are disappointed that this passage means the end of the $15 floor price of the original premise for the local scheme, and that argument can be respected.

Albeit the bill has passed relatively quickly and by the numbers, there is little or no support to be found with the executive of the opposition leadership. On ‘the far side’, excuse the reference to cartoon characterization, it is still preferred to retort to name calling and demonization of anyone with fortitude to promote change. The question that will remain until tested is: Will we regret tying ourselves to the EU scheme, as that scheme has shown weakness in its auction system and has required intervention to stay afloat?  CO2Land org will speculate the answer is we would be far more exposed if we did not take the step. We are not alone.

Apart from the deniers the evidence is we have to go with the system. This is further emphasized when most of the industries and the economies evolve around the need for the certainty. The ETS systems bring with them a market to focus on and give them a need for the market to plan for their future in the carbon constrained world.

It is still very perplexing as to why climate change deniers can say “a bigger con than ours as it has achieved zero except make some feel good”, “they don’t call her Juliar for nothing”.  ‘They’ can easily traced to the opposition and the rallying against the carbon tax and vowing to repeal it if in government.

The opposition tack is shallow and continues to describe the carbon tax as a shambles, despite no evidence of any magnitude of negative affects being demonstrated because of the price. The greater threat to energy prices is all gaming activities on energy prices, a lackluster energy regulatory regime and the need for revenue gains for cash strapped States. Posted on September 14, 2012 by co2land The cold hard facts on state finances can be taken from this table:

  NSW VIC QLD WA SA TAS
2011/12 -$940 -$811 na -$178 -$120 -$80
2012/13 -$1000 -$635 na -$284 -$400 -$120

Table: Estimated impact of GST reduction on State budgets, 2011/12 and 2012/13 ($m). Source: State budget papers

The greater danger is the A bot leadership is to do not a thing to genuinely address the need for certainty, other than promise to repeal the legislation and leave us isolated from the global benefits. The tragic comedy continues where one Nationals senator Ron Boswell said as quoted by the ABC on renewable energy targets and the carbon price driving up electricity prices. “Australia is in an expensive energy hole right now because … of the carbon tax, and it is time we stop digging”. No need to comment on that one, it answers itself as to what is the problem!

CO2Land org notes carbon pricing was one of the most significant changes to the Australian economy, it will be enduring but not endearing and it will be important for business to know the way to calculate the environmental cost of their activities. Otherwise they may be penalized by those places where emitters pay. We are not alone and not going to be alone. The EU ETS is followed by California’s first auction sellout – they have even found some businesses have experienced outstanding business performance in the carbon markets and plan awards ceremonies for same, and China’s planned expansion to position itself as number 2 ETS market ahead of California should give confidence to our businesses and innovators that understand the importance of carbon and to be a sustainable entity. Posted on November 14, 2012 by co2land “The official start for California’s Carbon Pollution Allowances purchase of permits at auction starts 14 November 2012.” In a previous story California’s ‘carbon market mandate’ posted on 9 October 2012 by co2land it was said “Looking at what the Californian’s have done: They have taken the approach that big business can be encouraged from polluting the environment”. The http://news.yahoo.com/california-sells-first-pollution-permits-222337650.html reports on 19 November 2012 that the sellout of 23.1M permits attracted $10.09 each.

If you need more, or need to know what all this really means to the two way linking of the EU ETC, the AU ETS and Carbon pricing following is the Federal Government’s link on the agreement

Download the PDF

Australia and European Commission agree on pathway towards fully linking emissions trading systems (88 kB)

 

 

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