Carbon tax passes House of Reps
The Federal Government’s suite of carbon trading legislation has passed in the House of Representatives following weeks of intensive parliamentary debate.
The Clean Energy legislation, which will be debated in the Senate next month, passed in the House with 74 votes to 72.
If passed in the Senate, as is likely with the support of the Greens, the Bill, containing 18 pieces of legislation, will come into force on July 1 next year.
Under the government’s package, a fixed carbon price of $23/tonne will be imposed from July 1, 2012, rising 2.5% per year in real terms for 3 years.
In 2015, the package will convert to an emissions trading scheme with a floating price. It will have a floor of $15 and a ceiling of $20 above the expected national price to prevent volatility.
Included in the bills is legislation to create an Australian Renewable Energy Agency. This will be established on July 1, 2012, and oversee $3.2 billion in federal funding for renewable energy such as solar, biomass, biofuels, ocean, and geothermal energy. Of this total, $1.5 billion is committed to existing projects and $1.7 billion remains uncommitted.
In addition, the $10 billion Clean Energy Finance Corporation will invest in commercialisation and deployment of renewable energy, energy efficiency, and clean energy technologies.
The Clean Energy suite of bills is available here.