Government pushes back ETA for its ETS
Insurers will generally welcome the Federal Government’s decision to significantly change its proposed carbon emissions trading scheme (ETS) in a bid to get the legislation through the Senate.
The industry has been at the forefront of calls for Government action to act on climate change-causing emissions for at least 10 years.
The changes include pushing back the start of the scheme by a year to mid-2011 and capping the price of carbon at $10 a tonne for the first year, instead of $40 for the first five years. It will also reduce emissions by 25% if a global agreement can be made to stabilise carbon levels at 450 parts per million by 2050.
Allianz spokesman Nicholas Scofield says the changes to the ETS and the increase to 25% are welcome.
“This is really about moving as fast as is practicable and it is about everyone sharing the burden equally and fairly,” he told insuranceNEWS.com.au.
“In principle it would have been preferable to have an ETS commence several years ago, set at a very modest carbon price to get those signals into the community. But July 2010 always seemed an overly ambitious target to develop the legislation and get it passed.”
While the Government initiative continues to attract criticism from political opponents, the Business Council of Australia, Australian Industry Group and some environmental groups have welcomed it.
The industry has been at the forefront of calls for Government action to act on climate change-causing emissions for at least 10 years.
The changes include pushing back the start of the scheme by a year to mid-2011 and capping the price of carbon at $10 a tonne for the first year, instead of $40 for the first five years. It will also reduce emissions by 25% if a global agreement can be made to stabilise carbon levels at 450 parts per million by 2050.
Allianz spokesman Nicholas Scofield says the changes to the ETS and the increase to 25% are welcome.
“This is really about moving as fast as is practicable and it is about everyone sharing the burden equally and fairly,” he told insuranceNEWS.com.au.
“In principle it would have been preferable to have an ETS commence several years ago, set at a very modest carbon price to get those signals into the community. But July 2010 always seemed an overly ambitious target to develop the legislation and get it passed.”
While the Government initiative continues to attract criticism from political opponents, the Business Council of Australia, Australian Industry Group and some environmental groups have welcomed it.