Carbon pricing and the “Abbott proof fence”

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From the AFR:

…In advice released to clients today, Norton Rose partner Elisa De Wit said if it won the election the only way the Coalition could stop the carbon price scheme from operating would be to have parliament pass amending legislation.

Options to alter or amend the carbon tax include increasing the threshold for liable entities to an arbitrarily high number so that no companies would be obliged to pay it; changing the cost of fixed price units to $0; and cutting funding to the Clean Energy Regulator so it is unable to enforce the clean energy legislation.

Another option could be to introduce an amendment saying the tax does not apply after a certain date.

“There is no clean way for the Coalition to simply amend the CPM, through regulation or legislative instruments, so that it no longer functions as originally designed,” the advice said.

Ms De Wit concluded that Labor, the Greens and Independents has successfully erected an “Abbot proof fence”.

 

Houses and Holes

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the fouding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.

He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.

Comments

  1. Abbott has never said he will stop the carbon price system, he has only ever said he will stop “The Carbon Tax” which of course dosen’t exist.

  2. Doesnt the headline contradict the actual contents of this report ?

    I see 3 options that the coalition can choose from below:

    “Options to alter or amend the carbon tax include increasing the threshold for liable entities to an arbitrarily high number so that no companies would be obliged to pay it; changing the cost of fixed price units to $0; and cutting funding to the Clean Energy Regulator so it is unable to enforce the clean energy legislation.”

  3. It seems to me that managing the price of carbon is like managing any other artificially created bubble price.
    You need to first repeat three times
    Inflation is your friend
    Inflation is your friend
    Inflation is your friend
    The solution to print/issue certificates becomes self evident when the problem is framed with this reference.

  4. Los Angeles set to ditch coal power
    City power company to replace electricity supply with renewables, energy efficiency, and natural gas

    Los Angeles plans to abandon coal power in favour of renewable energy, natural gas, and a programme of energy efficiency.The City’s municipal-owned utility, the Los Angeles Department of Water and Power (LADWP), yesterday announced it will phase out electricity from the coal-fired 2,250MW Navajo Generating Station and 1,800MW Intermountain Power Project (IPP) in Utah that currently provide just under 40 per cent of the metropolis’s power.”The era of coal is over. Today we affirm our commitment to make Los Angeles a cleaner, greener, more sustainable city,” Mayor Antonio Villaraigosa said in a statement. “By divesting from coal and investing in renewable energy and energy efficiency, we reduce our carbon footprint and set a precedent for the national power market.”

    http://www.businessgreen.com/bg/news/2256030/los-angeles-set-to-ditch-coal-power