Clean Energy Bill, 2011

Clean Energy Bill, 2011

The Clean Energy Bill 2011 is a package of legislation that will establish a proposed Australian emissions trading scheme designed to reduce carbon dioxide emissions and limit global warming.[1]

History

Both the incumbent Howard Coalition government and the Rudd Labor opposition promised to implement an emissions trading scheme (ETS) before the 2007 federal election. Labor won the election, with the new government proceeding to implement an ETS. The government introduced the Carbon Pollution Reduction Scheme, which the Liberals supported with Malcolm Turnbull as leader. Tony Abbott questioned an ETS, saying the best way to reduce emissions is with a "simple tax".[2] Shortly before the carbon vote, Abbott defeated Turnbull in a leadership challenge, and from there on the Liberals opposed the ETS. This left the government unable to secure passage of the bill and it was subsequently withdrawn.

Julia Gillard defeated Rudd in a leadership challenge and from there on said no carbon tax would be introduced under a government she led when taking the government to the 2010 election. In the first hung parliament result in 70 years, the government required the support of crossbenchers including the Greens. One requirement for Green support was a carbon tax, which Gillard proceeded with in forming a minority government. A fixed-price carbon tax would proceed to a floating-price ETS within a few years under the plans. The government proposed the Clean Energy Bill in February 2011,[3] which the opposition claimed to be a broken election promise.[4] The Liberal Party vowed to overturn the bill if it is elected.[5]

The legislation was approved by the Lower House in October 2011[6] and by the Upper House in November 2011.[7]

Mechanism

Under the scheme, around 500 entities will be required to buy permits for each tonne of CO2 emitted. Personal income tax will be reduced and the tax-free threshold increased.

References

  1. ^ "Clean Energy Bill 2011". Department of Climate Change and Energy Efficiency. Australian Government. 2011-09-02. http://www.climatechange.gov.au/government/submissions/clean-energy-legislative-package/clean-energy-bill-2011.aspx. Retrieved 2011-10-19. 
  2. ^ Abbott defends carbon tax interview: ABC 9 June 2011
  3. ^ Leslie, Tim (2011-02-24). "Gillard unveils Carbon Price Details". ABC News. http://www.abc.net.au/news/stories/2011/02/24/3147523.htm. 
  4. ^ Hudson, Phillip (2011-02-26). "Tony Abbott calls for election on carbon tax". Herald Sun. http://www.heraldsun.com.au/news/national/pm-gambles-on-carbon-tax-slug/story-e6frf7l6-1226011659564. Retrieved 2011-05-05. 
  5. ^ "Opposition vows to repeal carbon tax". Sydney Morning Herald. 2011-10-02. http://news.smh.com.au/breaking-news-national/opposition-vows-to-repeal-carbon-tax-20111002-1l3dl.html. 
  6. ^ Johnston, Matt (October 12, 2011). "Carbon tax bills pass lower house of federal Parliament". Herald Sun. http://www.heraldsun.com.au/news/more-news/carbon-tax-bills-pass-lower-house-of-federal-parliament/story-fn7x8me2-1226164570957. Retrieved October 12, 2011. 
  7. ^ AAP with Reuters (8 November 2011). "Carbon tax gets green light in Senate". Sydney Morning Herald. http://www.smh.com.au/business/carbon-tax-gets-green-light-in-senate-20111108-1n4rp.html. Retrieved 9 November 2011. 

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