Ross Garnaut has endorsed the government/Greens proposal for a carbon price scheme but substantially revised his approach to industry compensation.

In another update to his climate change review, Garnaut today released a paper on mechanisms to reduce Australian emissions. As expected, the paper endorses the Labor-Greens approach of a initial fixed-price scheme, followed by a move to emissions trading. Garnaut had supported that model when it was initially advanced by the Greens in 2010. As part of the framework for assessing models, Garnaut proposes a test for mechanisms to reduce Australia's carbon emissions: "First, they must be a fully proportionate contribution to a global solution. Second, they must impose the least economic cost. Third, the costs of the domestic mitigation effort must be distributed equitably across the community."