The Government on 20 December 2013 released its Emissions Reduction Fund Green Paper, setting out what it claims is a cost effective, practical and simple approach to reduce Australia’s emissions without a carbon tax. The Emissions Reduction Fund is the centre piece of the Government’s Direct Action Plan to cut emissions to 5% below 2000 levels by 2020. The Fund is proposed to commence on 1 July 2014 to coincide with the scrapping of the carbon tax.
The Minister for the Environment, Greg Hunt, says the Green Paper reflects the Government’s detailed and widespread consultation with business and the community, incorporating views from across the economy, including mining, manufacturing, transport, power and agricultural businesses, local councils and environment groups. Almost 300 submissions were received on the Terms of Reference for the Emissions Reduction Fund and these have been important in shaping the Government’s Green Paper.
The Paper says the Emissions Reduction Fund will be built on the Carbon Farming Initiative by expanding its coverage beyond the land sector to enable the Clean Energy Regulator to credit emissions reductions from across the economy. The Clean Energy Regulator will continue to approve Carbon Farming Initiative projects and issue Carbon Farming Initiative credits under the current legislation. Carbon Farming Initiative credits can continue to be traded, banked or used to offset emissions. The credits will also continue to be able to be used for compliance under the carbon tax until final payments are due in February 2015.
COMMENTS on the Paper are due by 21 February 2014.
Source: Minister for the Environment media release, 20 December 2013
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