Apr 18, 2013

Hold the panic over the EU carbon price plunge

Claims Australia's carbon price is in terrible trouble due to the price plunge in Europe's carbon scheme need to be seen for what they are. Australia's polluters have a sweet deal from our carbon price, and they know it.

The EU carbon pricing scheme is in trouble, and the failure of the EU Parliament to pass the European Commission’s proposal to postpone the sale of 900 million emission allowances until the back-end of this decade has reignited a range of criticisms of Australia’s carbon pricing scheme. But in some respects it appears that no matter which way this thing goes, the Gillard government can’t win.

For the past two years, business lobby groups and the opposition have been complaining that the carbon trading scheme will exact a huge cost on industry and households such that it would be like a wrecking ball through the economy.

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5 thoughts on “Hold the panic over the EU carbon price plunge

  1. K.D. Afford

    This is all very sad for humanity as regardless of ever increasing serious data proving the warming of the planet through greenhouse gases, in particular CO2 which has passed 397 ppm, industry is defiant in the face of imminent catastrophes that face mankind.

  2. Suzanne Blake

    Panic that its all over? red rover

  3. zut alors

    Check out Greg Hunt’s interview with Tony Jones on Lateline this evening – a thoroughly clueless shadow minister who failed to answer a single question rationally or intelligently.

    He couldn’t address the latest findings by the CSIRO, blindly declaring the Coalition can fulfill their emissions targets. Furthermore, he has an irritating, and patronising, habit of referring to voters as “mums and dads”.

    Hunt is a lightweight unworthy of comparison to Greg Combet.

  4. CML

    @ zut alors – Yes I did see the interview you mention. What a disaster! Hunt looked and sounded like a rabbit caught in the spotlight. Come to think of it, that might be unkind to the rabbit population!! I couldn’t understand anything Hunt said – he quite simply didn’t even make sense.
    And this is the level of expertise that nearly 50% of the population are planning to vote for? Heaven help us!

  5. Tony Melville

    Hi – a couple of clarifications from the Australian Industry Group on this one:
    • On emissions intensive trade exposed industries – yes, EITE assistance is very significant for those industries that qualify. We have always been most worried about those who fall somewhat short of the thresholds for that assistance – foundries, food processors and so on – who have no permit allocation. A move to an ETS is a clear win for them.

    • On the relevance of the EU scheme – We have never argued that the EU was not a competitor (some might have), but the situation is that most of our competitors are currently paying no carbon price, and even EU-based competitors are now paying a very low one. China and others are moving to introduce carbon prices, but with substantial protections for industry.
    Ai Group spokesman

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