Posted on behalf of Marian Turner.
Continued lobbying from opposition politicians and business groups has failed to thwart the Australian Labor government’s planned price on carbon, which today passed its first legislative hurdle in the federal House of Representatives.
The government’s climate change minister, Greg Combet, heralded the vote by saying, “The important thing at the end of the day is that as a country, in our own long-term national interest, the interest of future generations, we make this reform.”
The legislation, under which Australia’s top 500 carbon-emitting companies will pay AU$23 (approx. US$23) per tonne of carbon that they emit from 1 July, 2012, still needs approval by the Australian Senate. But no last-minute dramas are expected when that vote is cast in November, as the Australian Greens hold the balance of power in the Senate and the package was drafted with substantial deference to their demands.
The scheme is designed to cut Australia’s carbon emissions to 80% of current levels by 2050 (see Nature‘s previous coverage here). It is not a general tax on carbon, but an emissions trading scheme for business. The fixed-price per-tonne fee will increase by 2.5% plus inflation annually for three years before converting to a flexible market-driven price on 1 July 2015. The package comes with tax breaks designed to offset cost of living increases that are expected to hit consumers. Combet says he is confident that public support for carbon pricing will grow as these measures start to take effect.
Australian academics have commended the legislation not only for the price on carbon but also for its incorporated funding for research and development. In a comment for the Australian Science Media Centre, agricultural scientist Snow Barlow from the University of Melbourne said “the package provides a much needed research, development and demonstration program. This will equip land managers to generate carbon credits by decreasing the carbon intensity of their activities while maintaining productivity and improving sustainability.”
However, opposition Liberal party leader Tony Abbott reasserted his objection to the legislation and vowed to repeal the laws if he wins government at the next election, which must be called before November 2013.
Australians rally in support of the carbon price in Melbourne on 8 October. Image courtesy of Takver via Flickr under Creative Commons.