Australia to move to a floating price on carbon pollution in 2014

Labor candidate for Bendigo, Lisa Chesters, today welcomed the announcement that the Federal Labor Government will move to a floating price on carbon emissions.

Under the previous arrangements, the carbon price was to be $25.40 per tonne next July. Under a floating price, the figure is expected to be around $6 a tonne.

“Our change will bring Australia into step with its major trading partners.” Ms Chesters said.

From July 1, 2014 Australia’s carbon price will be the same as in 31 other nations covering a population of more than 500 million people.

"This will be a positive move for businesses in Bendigo and Central Victoria. It will boost business competitiveness and will aid the transition towards a greener and more sustainable economy."

"I am also pleased that funding for the Clean Energy Finance Corporation and the Australian Renewable Energy Agency remains untouched and ensures businesses, local government and communities continue to lower their emissions."

"The Clean Energy Finance Corporation (CEFC) was established to drive innovation through commercial investments in clean energy through loans, loan guarantees and equity investments."

"The Australian Renewable Energy Agency (ARENA) coordinates around $3.2 billion in existing grant funding programs supporting research, development and demonstration of new renewable energy technologies."

"Successful programs such as the Clean Technology Investment Program that support industry by providing grants including over $540 million to Bendigo companies to upgrade to less polluting equipment and cleaner technologies, will continue."

Ms Chesters also said the change will ease cost-of-living pressure on families while ensuring Australia continues to play its part in reducing carbon pollution for the good of the environment.

“Treasury modelling shows that moving to a floating rate a year ahead of schedule will ease the cost of living by around $7.20 a week for families in Bendigo and Central Victoria."

“The impact will be greatest on electricity and gas bills."

“Importantly households and pensioners will continue to receive payments calculated on a higher carbon price, providing additional support to meet cost-of-living pressures. These benefits are permanent”.