Caltex’s magazine for employees, franchisees & resellers
Issue 44 Aug – Sep 08
Gallery
From 2010, facilities like Caltex’s Kurnell refinery will need permits for carbon emissions
In this issue:
The carbon pollution reduction scheme
Caltex refineries could face costs of $90 million a year for carbon emission permits
The Australian Government has released a green paper containing policy options for an Australian greenhouse gas emissions trading scheme known as the Carbon Pollution Reduction Scheme.
The Australian Government has released a green paper containing policy options for an Australian greenhouse gas emissions trading scheme known as the Carbon Pollution Reduction Scheme. It will start in 2010 and require about 1000 of the largest emitters of greenhouse gas emissions (“carbon emissions”) to purchase permits for their emissions.
The government will set a limit on the number of permits available which will reduce over time to achieve national targets (the “emissions trajectory”). As the number of permits made available will be less than emissions, this will create a price for carbon and encourage investments to reduce emissions.
Most permits will be auctioned by the government but some industries will receive free permits to help maintain their viability against overseas competitors from countries that do not have emissions trading schemes.
Fuel suppliers will have to purchase permits for the emissions from customers’ fuel use then fully pass on the cost to consumers. However, prices to motorists will not increase for at least three years because excise will be reduced “cent for cent” to offset carbon costs.
Final policy decisions and draft legislation for the Carbon Pollution Reduction Scheme will be released in December 2008.