Hawker Britton Occasional Papers and Media

Federal Government announces changes to the CPRS

May 2009

blue bar

The Government today (4 May 2009) announced that it will delay the start of the Carbon Pollution Reduction Scheme by 12 months to 1 July 2011. The Government has said it is delaying the commencement of the CPRS to assist business through the current financial downturn.

The Government also announced a number of additional measures in support of Australian business. These are:

In addition, the expanded Renewable Energy Target will be in place as planned from 2010 to drive investment in renewable energy in Australia. 

Reforestation projects will be eligible to voluntarily generate permits for carbon stored from 1 July 2010, in order to encourage carbon pollution reductions before the scheme starts and creating economic opportunities in regional Australia.

The Government has announced that a price cap will apply from commencement of the Carbon Pollution Reduction Scheme, with the 5-year EITE review to look at whether the price cap should continue into the future.

A number of other changes have been made to the EITE assistance program. These changes include:

Any changes or modifications to the EITE assistance program will be given five years notice, unless those modifications were required for compliance with Australia’s international trade obligations.

The Government has also announced that it will adopt a 25 per cent emissions reduction target, but will only do so as part of an ambitious international agreement to stabilise greenhouse gases in the atmosphere at 450 ppm CO2-e or lower. The Government has stipulated five conditions for this target to be met:

Further information about the deferral to the CPRS is available on the Department of Climate Change website here.