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22 Sep 2021 17:48:59

Carbon tariffs to correct over-subsidisation?

Posted: 22 Jul 2021

The Government suspects it is over-subsidising industrial polluters to the tune of $42 million a year in the form of free carbon credits and has suggested controversial carbon tariffs might be one way to solve the issue.

Large polluters who export some or all of their products are eligible to receive between 59 and 89 percent of their emissions discounted under the Emissions Trading Scheme (ETS), so they don't struggle to compete against overseas firms which don't face a carbon price.

However, the way in which the baseline for that discount is calculated is out of date, the Government says, and some companies are eligible when they really shouldn't be. In fact, some sectors are receiving as much as a 300 percent discount on their emissions, instead of the 59 percent intended.

Read more here.