GOVERNMENT'S $66 PER TONNE CARBON PRICE REVEALED

Media Release

Mark Butler MP.

Shadow Minister for Environment
 Climate Change and Water

Date:  26 May 2015

The Government’s slush fund for big polluters will pay $660 million for 10 million tonnes of carbon abatement – a carbon price of $66 per tonne. 

In stunning evidence to Senate Estimates, the Clean Energy Regulator has admitted 107 of the 144 projects recently awarded contracts under the Emissions Reduction Fund were pre-existing. 

Clean Energy Regulator CEO Chloe Munro confirmed these projects, which were previously paid for by big polluters under Labor’s market mechanism, had been transferred to payment by the taxpayer. 

“This means around three quarters of pollution reduction Greg Hunt claimed to have purchased in the first round of the ERF was already happening. At a price of $66 per tonne, Minister Hunt has bought only 10 million additional tonnes of carbon abatement,” Shadow Minister for Climate Change Mark Butler said. 

“This is a stunning admission by the Government’s own agency which can no longer hide behind the lack of detail in this woeful policy. 

“This confirms exactly what Labor and market analysts have been saying all along. 

“The taxpayer is footing the bill for carbon pollution reduction activities that were happening anyway,” Mr Butler said. 

“Minister Hunt was so brazenly deceptive when announcing the results of the first auction. He now needs to explain why he’s allowing taxpayers to subsidise big polluters’ carbon abatement.”