Carbon trading turns into carbon taxing and gets delayed

http://www.theaustralian.news.com.au/story/0,25197,25425726-601,00.html

The revamped CPRS legislation will establish a one-year fixed price period. Carbon permits will cost $10 per tonne of carbon in 2011-12, with the transition to full market trading from 1 July 2012.

So carbon trading gets turned into carbon taxing for the first year and the implementation gets delayed. Of course I’m cherry picking the good news.

The bottom line is that the coalition will support the go ahead for a carbon trading scheme. A new impost on the economy without any meaningful measures to provide offsetting tax cuts elsewhere.

5 thoughts on “Carbon trading turns into carbon taxing and gets delayed

  1. I did some quick googling to find that 1 Liter of Gasoline produces 2.5kg of CO2. So that $10 is good for about 400 liters. This comes out to about 2.5 cents of carbon tax per liter of petrol.

    Throw in some potential monetary inflation and that $10 per ton will become even more insignificant.

  2. So, once again, we have no Opposition. The pendulum of public opinion on global warming is slowly swinging, but politicians will take a few years to realise. South Australia know has their ban on plastic bags (or more specifically, FREE plastic bags) – despite the fact that they are biodegradable.

    Petrol is already taxed significantly… I wouldn’t be surprised if they at least knock a couple cents of that to avoid backlash – depends if the media gets behind it.

  3. Update – Seems we have at least some Opposition after all:

    http://www.smh.com.au/environment/turnbull-wont-back-amended-emissions-scheme-20090504-asbw.html

    Of course, he’s simply saying that because it’s being delayed, the government can no longer claim a sense of urgency, and can now go ahead with their abandoned review by the Productivity Commission… clever politics, perhaps – but we know it will mean nothing and that the Coalition will ultimately support this nonsense 😦

  4. South Australia’s plastic bag ban is driving me nuts!
    Plastic bags are not a land fill problem anywhere, especially not in Australia.

    South Australia also now has 10c for every can collected.
    For my own interest, does anyone know how much the aluminium in 1 can would be worth? Or how much the glass in 1 375mL bottle is actually worth?

  5. No idea, Tim… though aluminium is one of the few things that’s actually profitable to recycle without government intervention.

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