House Tablet

Find The Best Solar Deals In Australia

  • 3 Free, No Obligation, Solar Quotes
  • From Fully Qualified Installers
  • With 1000’s of Customer Reviews
  • Competing for Your Business
Finn Peacock Caricature

Ready for some quotes? Enter your postcode now

Carbon tax floor price plans scrapped

29th Aug 2012

It's not even been two months since the introduction of the carbon tax, but the government has already decided to make changes to the controversial charge.

Australia will not only be scrapping its carbon floor price (which was set at $15 a metric ton), but it will also be linking up its CO2 trading schemes with ones in the European Union (EU) in an effort to make it cheaper for Aussie businesses to buy credit.

The EU is not doing it out of the goodness of its heart - the move is expected to provide a much-needed boost for its flailing economy.

Europe has seen confidence in its carbon market effectively collapse in recent months as oversupply has caused prices to plummet, removing any incentive to upgrade to greener technology such as solar energy.

Under the new agreement, Australian firms can use EU allowances for up to 50 per cent of their liabilities by 2015, although their European counterparts will need to wait until at least 2018 to receive the same benefits.

Australian climate change minister Greg Combet said: "This means that from July 1 2015, Australia's carbon price will effectively be the same as that in our second-largest trading bloc. The same carbon price will cover 530 million people."

According to Mr Combet, Europe is not the only place where Australia is looking to forge partnerships, with talks ongoing with New Zealand about also linking their carbon schemes.

He implied businesses were unhappy with the carbon tax, claiming enterprises want more flexibility on carbon prices once the country moves to a trading scheme.

The plans were backed by the Australian Greens, who support the minority government and have quite a bit of clout when it comes to policy making.

Leader of the Greens Christine Milne said: "We are effectively exchanging a short-term floor price for a long-term trajectory, for stability."

However, not everyone was cheery about the developments, with the Australian Chamber of Commerce and Industry (ACCI) keen to rain on the government's parade.

The ACCI stated the announcement was almost meaningless, as the country's firms will still be short-changed by the world's "most intrusive" environmental levy. 

"Today's announcement cannot whitewash the bigger picture, which is the futility of the world's largest carbon tax that is still not linked to global action that imposes comparable costs on our trading competitors, especially big industrialising nations in our region," chief executive Paul Anderson explained.

Posted by Bob Dawson

Solar Power News Categories

Government Rebate & Regulations
Solar Power & Technology

More Government Rebate & Regulations

The election that could cast a deep shadow on solar power
This just in: You are nothing but a means to profit for big utilities and NSW government
The Tongans know a bad solar deal when they see one
Solar feed-in tariffs: Who's getting screwed?
Australian government at a solar power crossroads
WA government admits fault in solar rebate debacle
WA Government saves millions while solar customers are up in arms
SA's solar feed-in scheme costs to rise higher
CEC slams FIT deregulation in SA
Carbon tax announcement 'just a ripple'
Industry reactions to Rudd carbon price changes
New government 'must be made aware of renewable achievements'
Solar features prominently in ARENA funding plans
Calling all solar panel installers - 'save clean technology grants'
Manufacturers set to see bright side of economic slump?
Coalition government 'could spell bad news for solar'
'Not FIT for purpose' - ACT government on tariffs
QLD government under fire for negative solar stance
China's first trading emissions scheme begins
Details of the Queensland solar controversy
Solar panel reprieve for Queensland
Tasmania's solar future no longer too uncertain
Renewable energy funding on the brink
The Clean Energy Council calls for more renewables
Reactions to renewable energy decisions from the 2013-14 federal budget
Federal budget announcement offers a mixed bag
The impact of the carbon tax
Govt energy efficiency success
Renewable Energy Target achievements
New funding for solar panels
Australia and China further carbon cutting collaboration
Examining Australia's environmental efforts
Renewable Energy Target survives its review
Solar powered cinema a possibility
New licensing will make it easier for solar installers to work across states
Renewable recommendations for WA
Renewable energy target hangs in the balance
Deadline approaching for QLD PV installations under 44 cent solar tariff
Electricity emissions down since carbon tax introduced
Reactions to RET review final report mixed
CCA: RET on track to achieve goals
Experts slam Solar Credits decision
Government support 'needed for commercial solar development'
Shadow ministers slam ARENA withdrawal
Industry expert lauds solar PV impact
Australian Solar Council chief hits back at CCA review suggestion
Australian Solar Council debuts solar electorate map
CCA report 'victory for common sense'
Productivity Commission draft 'good for solar'
SA solar campaign reaches government level