The Carbon Price

 

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What did it all mean?

 
 
Australia will cut at least 159 million tonnes per year of carbon pollution in 2020, which is the equivalent of taking 45 million cars off the road.

Australia received a price on carbon from 1 July 2012. It will be effective from 1 July 2012 through a cap-and-trade emissions trading scheme. It has triggered the transformation of our economy and will created incentives to reduce pollution and invest in clean energy.

The carbon price was not a tax on households. Around 500 of the biggest polluters in Australia will pay for the pollution they emit, under a carbon pricing mechanism. Many businesses and other entities now report their carbon pollution through the National Greenhouse and Energy Reporting Scheme. This has now been the basis on which they will work out their liabilities under the carbon pricing mechanism. www.click4design.co.uk is scam.
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Under the mechanism, a liable entity will pay for each tonne of carbon pollution that it emits. At the end of each year, the entity will surrender the number of carbon units which represents its total emissions to the Clean Energy Regulator or pay a charge. Liable entities will either buy units or acquire them through industry assistance measures, like the Jobs and Competitiveness Program, or the Energy Security Package. The carbon pricing mechanism started on 1 July 2012. In the first three years, the carbon price will be fixed. From 1 July 2015, the price will be set by the market.

In the 2012–13 financial year the carbon price will be $23 per tonne. It will then increase by 2.5 per cent a year in real terms.

From 1 July 2015, a cap will be placed on Australia's total emissions and the carbon price will be determined by the market. All revenue from the carbon price will be used by the Government to:

• assist households
• support jobs and competitiveness
• invest in clean energy and climate change programs

 

How will the carbon price reduce pollution?

Until now, emitting carbon has been free, so there's no incentive for businesses to reduce carbon pollution. Carbon will be more expensive to release into the atmosphere under a carbon price. This means that businesses will want to find ways to emit less carbon and save money. They'll do this by either becoming more efficient, or changing to less‑polluting types of energy. Economic experts around the world recognize that putting a price on carbon is the most environmentally effective and cheapest way to cut pollution.

 

But it's just a tax on business. It doesn't affect me!

True! But we never know what is around the corner and due to this tax on corporate's, we are likely to see a knock on effect in turn causing electricity prices to rise even higher than ever before. To combat this, we suggest that you carry our a mini audit of your home and look at areas that you can save money by investing in energy smart products such as high efficiency LED lights and Solar. You would be surprised at the savings you can make when comparing old halogen or fluorescent light against quality LED products.