Friday, May 4, 2012

Carbon price check, get ready to pay u

* List of companies set to pay carbon price scheme
* Steel, aluminium makers among those listed
* Comes amid warnings "Australian industry could be at risk"



GIANT steel and aluminium makers will be among almost 250 companies paying the carbon price from July, along with electricity distributers and even a NSW regional council.

They will have to pay $23 for each tonne of their carbon pollution and will keep paying until they reduce their emissions.

The Government today released the names of the 248 “entities'' (see full list here) who will be liable for the carbon penalty because they are responsible for 70 per cent of the nation's emissions.

The names on the Liable Entities Public Information Database (LEPID) includes a roll call of major coal projects - from Anglo Coal to Yarrabee Coal.

And they include car maker Toyota, paper maker Visy, the South Australian Water Company, the Teys Meat Group, Snowy Hydro Ltd and the Wagga Wagga City Council.

And it seems high rollers are big polluters too with Crown Casino also on the list.

Other companies will be added to the list and it is expected to total just under 500 by July.

Legislation requires the Clean Energy Regulator to publish a list of entities that are likely to be liable under the carbon pricing mechanism.

“We've written to around 330 entities advising we believe they are likely to be liable entities for the 2012-13 financial year,'' said chair of the regulator Chloe Munro.

“These entities account for more than 95 per cent of emissions covered by the carbon pricing mechanism.

“Following that consultation we have today published 248 entities that we are satisfied are likely to be liable entities. These entities account for around 70 per cent of emissions covered by the carbon pricing mechanism.''

There will be a fixed price on carbon until 2015 when the market will set the penalty, as long as it doesn't go below a floor price set by the Government.

The Government today was forced to defend its scheme after independent Rob Oakeshott said the post-2015 floor price should be scrapped because it would keep prices well above those charged by overseas competitors.

Mr Oakeshott also wants to recall the multi-party group which drew up the scheme to be reconvened to consider changes.

The Government made clear nothing would change and regulations for the floor price would be introduced. But Mr Oakeshott said Australian industry could be at risk.

“Anyone who follows the international carbon price can see that the floor price in 2015 has the real potential of being in play - that is a risk to investment in Australia and a risk to the taxpayer in Australia,'' he said.

“Hopefully, in a sensible way, policy makers - either through the multi-party Climate Change Committee or through other means - can really think hard about whether it is in the scheme's best interests ... and the nation's best interests.''

Climate Change Minister Greg Combet plans to discuss the issue with the independent MP but made clear today Mr Oakeshott would be held to his signed agreement to support the scheme as it stands.

"We all negotiated that agreement, we intend abiding by it, but we haven't bought regulations forward at this stage to implement the floor price and I'll be having some discussions with Mr Oakeshott and others as we develop them," Mr Combet said.

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