Labor’s new carbon trading scheme – a beefed-up version of the former government’s safeguard mechanism, with teeth – will create pressure for real emissions cuts, and concessions for “trade exposed” industries will be issued sparingly and according to strict criteria.
Energy and Climate Change Minister Chris Bowen, in this week’s Carbon Challenge Newsmaker interview, says a tough approach is necessary because concessions for some industries mean others have to do more of the heavy lifting. However, the system will be flexible enough to allow the use of carbon offsets for hard-to-abate industries.
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Colin Packham is an energy and resources reporter at The Australian Financial Review Connect with Colin on Twitter.
John Kehoe is economics editor at Parliament House, Canberra. He writes on economics, politics and business. John was Washington correspondent covering Donald Trump’s first election. He joined the Financial Review in 2008 from Treasury. Connect with John on Twitter. Email John at jkehoe@afr.com
