Today, the Federal Government announced that it has ordered a review of Australia’s Emissions Trading Scheme (ETS) by the House of Representatives Economics Committee. The government has stated that the purpose of the review is to ‘examine that choice of emissions trading as the central policy to reduce Australia’s carbon pollution.’
Treasurer Wayne Swan has clarified that the terms of reference of the review will take into account Australia’s need to:
- reduce carbon pollution at the lowest economic cost
- put in place long-term incentives for investment in clean energy and low-emission technology, and
- contribute to a global solution to climate change.
The proximity of this announcement to the proposed timetabling of the ETS legislation in March this year has prompted calls from the Opposition Leader, Malcolm Turnbull, that the review represents the government’s first step towards abandoning the ETS and places its 2010 start date in significant doubt.
A spokesperson for the Department of Climate Change and Water said that the Federal Government is still committed to implementing an Australian ETS and to unveiling draft legislation for the scheme next month.
This article was written by Renee Garner, Solicitor, Melbourne.
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