Back-pedalling?
Perhaps it’s finally dawning on them that a $23 a tonne carbon tax for three years, plus a $15 dollar floor price for the ETS after 2015 is economically and electorally suicidal, especially when the EU carbon price is currently under $10.
Could this be the first of a number of incremental tactical retreats? How far can they go before the Greens have a hissy fit? [Not very – Ed] Greg Combet would be delusional to believe that the carbon price will recover to Labor’s projected figure of $29, surely?
THE Gillard government will abandon the floor price for carbon from 2015 under a deal with the European Union to link the Australian and EU carbon trading schemes.
Climate Change Minister Greg Combet said the move would not prompt a revision of federal budget figures, despite the low carbon price in Europe which has fluctuated between 3-10 Euros in recent times.
The budget figures rely on a $29 carbon price in 2015-16.
Mr Combet said the EU carbon price had been hit hard by the eurozone financial crisis, but it would recover.
“It is three years away,” Mr Combet said. “The treasury modelling is something we stand by.” (source)
Oh, he does. And he is.
All we need to do now is reduce the carbon tax from $23 a tonne down to maybe India’s level – $1.50 [actually 50 rupees, which is about 86 cents – thanks Andrew in the comments – Ed]?
On a serious note, however, if there are a number of small changes such as this, it may make it potentially more difficult for the Coalition to justify repeal if they win power. But while the fixed price remains at $23 a tonne for the best part of three more years, that won’t be a problem.
The government’s announcement is here.
Australian Climate Madness 
Simon, on India’s Carbon Price, it is in fact around 85 cents in AUD. Just thought I would point that out. http://www.guardian.co.uk/environment/2011/jul/10/carbon-tax-emissions-trading-international
[REPLY – Thanks – noted in the post above]
Oxygen thief!!
Wow Simon,when are you Ozzies going to learn from our stupid mistakes?
Our windfarms are losing money hand over fist.Our Emission Taxing Scam is robbing us taxpayers for no gain.Why do you think kiwis are going to Oz in record numbers?Answer;Because things are better in Oz.Don’t let up you guys and lead you into the false taxes we have here.If you don’t fight all this BS,you will fall into the same trap we are in.Good luck.
Mr Combet said the EU carbon price had been hit hard by the eurozone financial crisis, but it would recover.
The assumption that the eurozone will recover is a step too far, so to say that the carbon price would recover is untenable.
The EU carbon price is crashing :
http://wattsupwiththat.com/2011/12/15/eu-carbon-trading-in-freefall/
I will sell the cheapest sub prime Carbon credits on the market for US dollars of Aus dollars
on current form Tabott is doing his best to lose the next election before it arrives,as a potential PM he is as inspiring as a corpse.
Simon,
I must take you to task on even suggesting that a price on carbon should exist at $1.50
There should be no price on carbon, as the whole shemozzle is a fairy story designed to gut our civilisation, as is the design and as stated by the NWO mob to appease their false “godess” they call “Gaia”.
Comments supporting any form of price on carbon dioxide makes me wonder whether that was a freudian slip.
Your thoughts?
[REPLY – In principle I’m not ideologically opposed to a system like India, where a very small impost is channelled towards funding research – but I mean VERY small]
Perhaps they are under the ‘sway’ of the EU and Mz Mercle et all are doing some kind of a deal. I mean they cant sell their carbon credits they are not worth the paper they are written on…. so why not sell them to the dumb Aussies! and I read (WUWT?) that Germany are now backtracking on the green clean…. and soon to build and or upgrade some 25 coal fired power stations. Now we have mountains of coal here why don’t we do the same…. those windmill thingies don’t really work that well do they? (sarc) And come on now guys…. CO2 is free so why place a price on it all all,, except to build up your Canberian piggy bank!
The most meaningful position that the next (Liberal) government should do is exactly what Canada did earlier this year — exit the Kyoto Protocol.
They have witnessed a rebound in the polls following their backflip on asylum seekers. Now they reckon they can become real competitive by abolishing this bizzare carbon tax, which they will surely do, but slowly, to avoid total loss of face.
The USA carbon credits scam fronted by Al Gores / Obama’s Chicago Climate Exchange decreased in price to US$oo.10 / tonne before going ‘belly up’.
European credits have been lower than #10.00 & are likely to to crash soon in view of the current state of the Euro economies.
The carbon scam has absolutely nothing to do with CO2…it’s all to do with taxes and full & total control of the developed world’s economies.
Marxists used force to take control of land, resources & labour. Today’s marxists know that physical force at this stage is impossible but financial control of the basics of the world economies can be achieved thru this tax / carbon credit system. Like all things socialist it will not work.
Carbon credit markets are a farce.
Re the photo of dear Greg. Is that the loony sign framing his head?
Hi you chaps down under. here in the UK the green farce is coming under pressure, the subsidies are being reduced, not as fast as the Tories would like but the fact is we cannot afford them. The EU carbon credit scheme was suspended due to large scale fraud and lack of policing which cost billions. Germany is opening coal fired power stations as wind is failing, solar panel companines in China are so far in debt they are failing. Economic reality is approaching fast. Fight the good fight chaps. PS has it warmed up any down under?, been damned cold here this year.