The Multi-Party Climate Change Committee was established on 27 September 2010 to help build consensus on how Australia will tackle Climate Change.
The Committee will explore options for the introduction of a carbon price. It will report to Cabinet, through the Minister for Climate Change and Energy Efficiency, Greg Combet, with a range of possible policy positions informed by discussions with independent experts, the public and industry.
On 24 February 2011, the Prime Minister Julia Gillard announced the climate change framework outlining the broad architecture for a carbon price mechanism which has been considered by the Multi-Party Climate Change Committee. The proposed mechanism has been agreed by the Government and Greens members of the Committee, and all members have agreed that the proposal be released to enable consideration by the community and to demonstrate the progress that has been made.
The Committee has discussed a number of different ways in which a carbon price could be introduced into the economy and the advantages and disadvantages of each. This paper outlines the result of that discussion.
The proposal focuses on the high level architecture, start date, potential mechanisms to allow flexibility to move to emissions trading, sectoral coverage and international linking arrangements.
Further detailed discussions will be required in relation to a starting price for the carbon price mechanism, assistance arrangements for households, communities and industry, and support for low emissions technology and innovation.
The outlined architecture also allows for consideration of other design options such as phased coverage of sectors over time and coverage of the electricity sector via an intensity-based allocation scheme.
Expert advisers supporting the committee
- Professor Ross Garnaut
- Professor Will Steffen
- Mr Rod Sims
- Ms Patricia Faulkner
- APPENDIX 3 Terms of reference: Multi-Party Climate Change Committee
- Prime Minister establishes Climate Change Committee, The Hon Greg Combet AM MP, 27 September 2010