11th Oct 2012, 9:06 AM – Representatives Clean Energy Amendment (International Emissions Trading and Other Measures) Bill 2012 - Second reading - Motion to abolish the carbon price

The majority voted against a motion that: "the House declines to give this bill a second reading and calls on the Government to immediately abolish all liability and scrap the carbon tax"

The motion was introduced by Liberal MP Tony Abbott, Leader of the Opposition.

Since the majority of members voted No, the motion did not succeed and that the bills could continue to be discussed.

Background to the motion

By “carbon tax”, the motion refers to Australia’s carbon pricing mechanism which began on 1 July 2012.(For more information on the carbon pricing mechanism and how it works, please see the Clean Energy Regulator’s website.) The mechanism requires liable entities (a group that includes companies that emit a high level of greenhouse gases) to pay a price for their carbon emissions.

The bills being discussed when the motion was put are a package of seven bills designed to link Australia’s carbon pricing mechanism to overseas emissions trading schemes from 1 July 2015, which is when the Australian carbon pricing mechanism is scheduled to transition to an emissions trading scheme.

This means that Australian "liable entities" (a group that includes companies that emit a high level of greenhouse gases) would be able to trade carbon units with credible overseas emissions trading schemes such as the European Union’s Emissions Trading Scheme. Such businesses would be able to use eligible international carbon units to meet up to 50 per cent of their annual liability.

The seven bills are:

• Clean Energy Amendment (International Emissions Trading and Other Measures) Bill 2012
• Clean Energy (Charges - Excise) Amendment Bill 2012
• Clean Energy (Charges - Customs) Amendment Bill 2012
• Excise Tariff Amendment (Per-tonne Carbon Price Equivalent) Bill 2012
• Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Amendment (Per-tonne Carbon Price Equivalent) Bill 2012
• Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Amendment (Per-tonne Carbon Price Equivalent) Bill 2012
• Clean Energy (Unit Issue Charge - Auctions) Amendment Bill 2012

References