Clean Energy Act 2011

Last updated

Clean Energy Act 2011
Coat of Arms of Australia.svg
Parliament of Australia
  • A Bill for an Act to encourage the use of clean energy, and for other purposes
Citation Clean Energy Act 2011 (Cth)
Passed by Australian House of Representatives
Passed12 October 2011
Passed by Australian Senate
Passed8 November 2011
Royal assent 18 November 2011
Commenced1 July 2012
Legislative history
First chamber: Australian House of Representatives
Bill titleClean Energy Bill 2011
Introduced by Julia Gillard
First reading 13 September 2011
Second reading 11 October 2011
Third reading 12 October 2011
Second chamber: Australian Senate
Bill titleClean Energy Act 2011
Member(s) in charge Joe Ludwig
First reading12 October 2011
Second reading12 October 2011
Third reading8 November 2011
Repeals
Clean Energy Legislation (Carbon Tax Repeal) Act 2013 (Cth)
Status: Repealed

The Clean Energy Act 2011 was an Act of the Australian Parliament, the main Act in a package of legislation that established an Australian emissions trading scheme (ETS), to be preceded by a three-year period of fixed carbon pricing in Australia designed to reduce carbon dioxide emissions [1] as part of efforts to combat global warming. [2]

Contents

The package was introduced by the Gillard Labor government in February 2011 and was repealed by the Abbott government on 17 July 2014, backdated to 1 July 2014.

History

Rudd government

The Gillard Labor government's legislation followed unsuccessful efforts by the Rudd Labor government to secure passage of an ETS through the Australian Parliament. In opposition, Rudd had called climate change "the greatest moral, economic and social challenge of our time" and called for a cut to greenhouse gas emissions by 60% before 2050. [3] Both the incumbent Howard government and the Rudd Labor opposition promised to implement an ETS before the 2007 federal election. Labor won the election, and the Rudd government began negotiating the passage of an ETS through Parliament.

The Opposition led by Brendan Nelson called for the vote on the government's ETS be delayed until after the United Nations climate change summit in Copenhagen in December 2009. [4] Rudd said in response that it would be "an act of absolute political cowardice, an absolute failure of leadership not to act on climate change until other nations had done so" and the government pursued the early introduction of the Scheme. [5]

Choosing not to negotiate with the Australian Greens, who did not hold the balance of power in the Senate, [6] the government entered negotiations with the new Liberal Opposition Leader, Malcolm Turnbull, and in the lead up to the Copenhagen Conference, developed an amended Carbon Pollution Reduction Scheme (CPRS), with Turnbull's support. Following a party revolt by Coalition members opposed to the Scheme, and shortly before the carbon vote, Tony Abbott challenged for the leadership of the Liberal Party and narrowly defeated Turnbull. Thereafter the Coalition opposed the ETS outright and the government was unable to secure the support of any other senators for its CPRS.

Abbott described Rudd's Emission Trading plan as a "great big tax on everything" and opposed it. Abbott announced a new Coalition policy on carbon emission reduction in February, which committed the Coalition to a 5% reduction in emissions by 2020. Abbott proposed the creation of an 'emissions reduction fund' to provide 'direct' incentives to industry and farmers to reduce carbon emissions. [7]

Following the unsuccessful Copenhagen Conference, Rudd announced the deferral of the Scheme and elected not to take the matter to a double dissolution election. [8] In June 2010, Rudd was replaced as leader of the Labor Party in an internal party leadership challenge and Julia Gillard became prime minister. Factional leader and key Gillard supporter Bill Shorten said that the sudden announcement of change of policy on the CPRS was a factor that had contributed to a collapse in support for Rudd's leadership. [9]

Gillard government

Following her election as party leader, in various policy announcements in the lead up to the 2010 election, Prime Minister Gillard and Treasurer Wayne Swan gave assurances that no carbon tax would be introduced by a Gillard led government, but that a "citizens' assembly" would be called to sound out public support for a price on carbon. [10] [11]

The 2010 election resulted in a hung parliament in which Gillard secured the support of the Greens and three independents to form a government. On 28 September, in a joint press conference with the Greens, Gillard announced that a citizens assembly would not be held and that instead a "multi-party climate change committee" consisting of Labor, Greens, and Independent members, would examine the issues. [12]

On 24 February 2011, in a joint press conference of the "Climate Change Committee" – comprising the Government, Greens, and two independent MPs – Gillard announced a plan to legislate for the introduction of a fixed price to be imposed on "carbon pollution" from 1 July 2012. [13] The carbon price would be placed for three to five years before a full emissions trading scheme is implemented, under a blueprint agreed by a multi-party parliamentary committee. [14] Key issues remained to be negotiated between the Government and the cross-benches, including compensation arrangements for households and businesses, the carbon price level, the emissions reduction target and whether or not to include fuel in the tax. [15]

The Gillard government proposed the Clean Energy Bill in February 2011, [16] which the opposition claimed was a broken election promise. [17] The legislation was approved by the House of Representatives in October 2011 [18] and by the Senate in November 2011. [19] The Liberal Party vowed to overturn the legislation if elected. [20]

Mechanism

The Act begins on 1 July 2012, and operates on a financial year basis. It is administered by the Clean Energy Regulator and the responsible Minister. A carbon pollution cap limits the sum of: (a) the total number of auctioned carbon units; and (b) the total number of free carbon units issued in accordance with the Jobs and Competitiveness Program; and (c) the total number of free carbon units issued to coal-fired electricity generators. If a person (including a corporation) is responsible for covered emissions of greenhouse gas from the operation of a facility, the facility's annual emissions are above a threshold, and the person does not surrender one eligible emissions unit for each tonne of carbon dioxide equivalence of the gas, the person is liable to pay unit shortfall charge. The financial years beginning on 1 July 2012, 1 July 2013, and 1 July 2014 are fixed charge years (otherwise known in popular terms as the 'carbon tax'). In a fixed charge year, carbon units will be issued under the Act for a fixed charge. Later financial years are flexible charge years which involve emissions trading. In a flexible charge year, carbon units will be issued under the Act as the result of an auction plus by means of free allocation to coal fired generators and emissions-intensive trade-exposed (EITE) industries. However, in the flexible charge years beginning on 1 July 2015, 1 July 2016, and 1 July 2017, some carbon units may be issued for a fixed charge (to act as a cap). Furthermore, free carbon units will be issued under the Jobs and Competitiveness Program (which deals with emissions-intensive trade-exposed (EITE) activities). Free carbon units will be issued to coal-fired electricity generators. If a carbon unit was not issued for a fixed charge, the unit is transferable. The Climate Change Authority will conduct periodic reviews of the Act.

Impacts

Under the scheme, around 500 entities will be required to buy permits for each tonne of CO2 emitted. Personal income tax will be reduced for those who earn less than $80,000 per year and the tax-free threshold increased from $6,000 to $18,200. [21] In February 2012, the Sydney Morning Herald reported that Clean Energy Future carbon price had not deterred new investment in the coal industry, as spending on exploration had increased by 62 percent in 2010–2011, more than any other mineral commodity. The government agency Geoscience Australia reported that investment in coal prospecting reached $520 million in 2010–2011. [22]

See also

Related Research Articles

<span class="mw-page-title-main">Australian Greens</span> Australian political party

The Australian Greens (AG), commonly referred to simply as the Greens, are a confederation of green state and territory political parties in Australia. As of the 2022 federal election, the Greens are the third largest political party in Australia by vote and the fourth-largest by elected representation. The leader of the party is Adam Bandt, with Mehreen Faruqi serving as deputy leader. Larissa Waters currently holds the role of Senate leader.

<span class="mw-page-title-main">Kevin Rudd</span> Prime Minister of Australia (2007–2010; 2013)

Kevin Michael Rudd is an Australian diplomat and former politician who served as the 26th prime minister of Australia from 2007 to 2010 and June to September 2013. He held office as the leader of the Labor Party (ALP) and was the member of parliament (MP) the Queensland division of Griffith from 1998 to 2013. Since 2023, Rudd has been the ambassador of Australia to the United States.

<span class="mw-page-title-main">Julia Gillard</span> Prime Minister of Australia from 2010 to 2013

Julia Eileen Gillard is an Australian former politician who served as the 27th prime minister of Australia and the leader of the Labor Party (ALP) from 2010 to 2013. She was the member of parliament (MP) for the Victorian division of Lalor from 1998 to 2013. She previously served as the 13th deputy prime minister of Australia from 2007 to 2010, under Kevin Rudd. She is the first and only woman to hold either office in Australian history.

<span class="mw-page-title-main">Tony Abbott</span> Prime Minister of Australia from 2013 to 2015

Anthony John Abbott is an Australian former politician who served as the 28th prime minister of Australia from 2013 to 2015. He held office as the leader of the Liberal Party of Australia and was the member of parliament (MP) for the New South Wales division of Warringah from 1994 to 2019.

<span class="mw-page-title-main">Tony Windsor</span> Australian politician

Antony Harold Curties Windsor, is a former Australian politician. Windsor was an independent member for the New South Wales Legislative Assembly seat of Tamworth from 1991 to 2001 − supporting the incumbent Greiner Liberal/National Coalition minority government at the 1991 election.

<span class="mw-page-title-main">Carbon Pollution Reduction Scheme</span> Australian emissions trading scheme

The Carbon Pollution Reduction Scheme was a cap-and-trade emissions trading scheme for anthropogenic greenhouse gases proposed by the Rudd government, as part of its climate change policy, which had been due to commence in Australia in 2010. It marked a major change in the energy policy of Australia. The policy began to be formulated in April 2007, when the federal Labor Party was in Opposition and the six Labor-controlled states commissioned an independent review on energy policy, the Garnaut Climate Change Review, which published a number of reports. After Labor won the 2007 federal election and formed government, it published a Green Paper on climate change for discussion and comment. The Federal Treasury then modelled some of the financial and economic impacts of the proposed CPRS scheme.

<span class="mw-page-title-main">Garnaut Climate Change Review</span>

Professor Ross Garnaut led two climate change reviews, the first commencing in 2007 and the second in 2010.

<span class="mw-page-title-main">Carbon emission trading</span> Approach to limit climate change

Carbon emission trading (also called carbon market, emission trading scheme (ETS) or cap and trade) is a type of emissions trading scheme designed for carbon dioxide (CO2) and other greenhouse gases (GHGs). A form of carbon pricing, its purpose is to limit climate change by creating a market with limited allowances for emissions. Carbon emissions trading is a common method that countries use to attempt to meet their pledges under the Paris Agreement, with schemes operational in China, the European Union, and other countries.

<span class="mw-page-title-main">Greenhouse gas emissions by Australia</span> Release of gases from Australia which contribute to global warming

Greenhouse gas emissions by Australia totalled 533 million tonnes CO2-equivalent based on greenhouse gas national inventory report data for 2019; representing per capita CO2e emissions of 21 tons, three times the global average. Coal was responsible for 30% of emissions. The national Greenhouse Gas Inventory estimates for the year to March 2021 were 494.2 million tonnes, which is 27.8 million tonnes, or 5.3%, lower than the previous year. It is 20.8% lower than in 2005. According to the government, the result reflects the decrease in transport emissions due to COVID-19 pandemic restrictions, reduced fugitive emissions, and reductions in emissions from electricity; however, there were increased greenhouse gas emissions from the land and agriculture sectors.

<span class="mw-page-title-main">Rudd government (2007–2010)</span> An administration of the Australian government

The first Rudd government was the executive Government of Australia formed by the Australian Labor Party (ALP) and led by Prime Minister Kevin Rudd. The Rudd government commenced on 3 December 2007, when Rudd was sworn in along with his ministry. This took place just nine days after the defeat of the Howard government, which was a Coalition of members of the Liberal and National parties, at the 2007 federal election. The Rudd government concluded on 24 June 2010 when Rudd, under pressure from an impending leadership caucus ballot, stepped down from the leadership of the ALP and was succeeded by his deputy, Julia Gillard. Rudd was re-elected leader of the Labor Party in 2013 and served a second term as prime minister.

<span class="mw-page-title-main">Environmental movement in Australia</span>

Beginning as a conservation movement, the environmental movement in Australia was the first in the world to become a political movement. Australia is home to United Tasmania Group, the world's first green party.

<span class="mw-page-title-main">New Zealand Emissions Trading Scheme</span>

The New Zealand Emissions Trading Scheme is an all-gases partial-coverage uncapped domestic emissions trading scheme that features price floors, forestry offsetting, free allocation and auctioning of emissions units.

<span class="mw-page-title-main">2009 Liberal Party of Australia leadership spill</span> Leadership spill for the Liberal Party of Australia, held on 1 December 2009

A leadership spill for the Liberal Party of Australia was held on 1 December 2009. The incumbent leader Malcolm Turnbull was defeated by Tony Abbott on the second ballot; Joe Hockey also stood as a candidate. Abbott thus replaced Turnbull as Leader of the Opposition, and would lead the party to the 2010 federal election.

<span class="mw-page-title-main">2010 Australian Labor Party leadership spill</span> Leadership spill

A leadership spill occurred in the Australian Labor Party on 24 June 2010. Kevin Rudd, the prime minister of Australia, was challenged by Julia Gillard, the deputy prime minister of Australia, for the leadership of the Australian Labor Party. Gillard won the election unopposed after Rudd declined to contest, choosing instead to resign. Gillard was duly sworn in as prime minister by Quentin Bryce, the Governor-General, on 24 June 2010 at Government House, becoming Australia's first female prime minister.

<span class="mw-page-title-main">Gillard government</span> Australian government led by Julia Gillard (2010–2013)

The Gillard government was the Government of Australia led by the 27th prime minister of Australia, Julia Gillard, of the Australian Labor Party. The Gillard government succeeded the first Rudd government by way of the Labor Party leadership spill, and began on 24 June 2010, with Gillard sworn in as prime minister by the governor-general of Australia, Quentin Bryce. The Gillard government ended when Kevin Rudd won back the leadership of the Australian Labor Party on 26 June 2013 and commenced the second Rudd government.

<span class="mw-page-title-main">2013 Australian federal election</span> Election for the 44th Parliament of Australia

The 2013 Australian federal election to elect the members of the 44th Parliament of Australia took place on Saturday 7 September 2013. The centre-right Liberal/National Coalition opposition led by Opposition leader Tony Abbott of the Liberal Party of Australia and Coalition partner the National Party of Australia, led by Warren Truss, defeated the incumbent centre-left Labor Party government of Prime Minister Kevin Rudd in a landslide. It was also the third time in history that a party won 90 or more seats at an Australian election. Labor had been in government for six years since being elected in the 2007 election. This election marked the end of the Rudd-Gillard-Rudd Labor government and the start of the 9 year long Abbott-Turnbull-Morrison Liberal-National Coalition government. Abbott was sworn in by the Governor-General, Quentin Bryce, as Australia's new Prime Minister on 18 September 2013, along with the Abbott Ministry. The 44th Parliament of Australia opened on 12 November 2013, with the members of the House of Representatives and territory senators sworn in. The state senators were sworn in by the next Governor-General Peter Cosgrove on 7 July 2014, with their six-year terms commencing on 1 July.

The Climate Change Response Amendment Act 2008 was a statute enacted in September 2008 by the Fifth Labour Government of New Zealand that established the first version of the New Zealand Emissions Trading Scheme, a national all-sectors all-greenhouse gases uncapped and highly internationally linked emissions trading scheme. After the New Zealand general election, 2008, the incoming National-led government announced that a Parliamentary committee would review the New Zealand emissions trading scheme and recommend changes. Significant amendments were enacted in November 2009. Obligations for pastoral agriculture were further delayed. Obligations for energy and industry were halved via a "two for one" deal. Free allocation of units to industry was made uncapped and output based and with a slower phase-out. A price cap of $25 NZD per tonne was introduced.

A carbon pricing scheme in Australia was introduced by the Gillard Labor minority government in 2011 as the Clean Energy Act 2011 which came into effect on 1 July 2012. Emissions from companies subject to the scheme dropped 7% upon its introduction. As a result of being in place for such a short time, and because the then Opposition leader Tony Abbott indicated he intended to repeal "the carbon tax", regulated organizations responded rather weakly, with very few investments in emissions reductions being made. The scheme was repealed on 17 July 2014, backdated to 1 July 2014. In its place the Abbott government set up the Emission Reduction Fund in December 2014. Emissions thereafter resumed their growth evident before the tax.

<span class="mw-page-title-main">Rudd government (2013)</span> 2nd Rudd government of Australia

The second Rudd government was the federal executive Government of Australia led by Prime Minister Kevin Rudd of the Australian Labor Party. It commenced on 27 June 2013 and ceased on 18 September 2013. Rudd had previously served a term as Prime Minister from 2007 to 2010 and been replaced by his deputy Julia Gillard, following an internal party spill. Rudd regained the Labor Party leadership by successfully re-challenging Gillard in a June 2013 party spill. On 5 August, Rudd called an election for 7 September 2013, which resulted in the defeat of his government by the Liberal/National Coalition led by Opposition Leader Tony Abbott.

<span class="mw-page-title-main">Abbott government</span> 2013–2015 federal executive government of Australia

The Abbott government was the federal executive government of Australia led by the 28th Prime Minister Tony Abbott. The government was made up of members of the Liberal–National Coalition. The Leader of The Nationals, Warren Truss, served as Deputy Prime Minister. Following the 2013 Australian federal election held on 7 September, the Coalition defeated the second Rudd government, ending six years of Labor government. The Abbott government was sworn into office on 18 September 2013. Less than two years later on 14 September 2015, Malcolm Turnbull defeated Abbott in a leadership ballot, 54 votes to 44 and the Turnbull government became the executive government of Australia.

References

  1. ↑ "National Greenhouse and Energy Reporting Regulations 2008 – F2013C00778".
  2. ↑ "Clean Energy Bill 2011". Department of Climate Change and Energy Efficiency. Australian Government. 2 September 2011. Retrieved 19 October 2011.
  3. ↑ Peter Van Onselen (27 December 2008). "Rule of reckless vows". The Australian . Retrieved 16 December 2013.
  4. ↑ "Coalition to amend ETS 'to aid business'". The Sydney Morning Herald . 15 September 2009.
  5. ↑ "The 7.30 Report". ABC. 28 April 2010. Retrieved 25 April 2012.
  6. ↑ "Rudd favours Turnbull over Greens on ETS". 10 October 2009.
  7. ↑ Mclennan, David (2 February 2010). "Abbott announces emissions plan – Local News – News – General". The Canberra Times . Archived from the original on 6 February 2010. Retrieved 5 June 2010.
  8. ↑ Gillham, Alexis (27 April 2010). "Kevin Rudd delays plans for emissions trading scheme until 2013". Herald Sun . Retrieved 5 June 2010.
  9. ↑ "The Gillard Coup | Q&A | ABC TV". Australian Broadcasting Corporation. 28 June 2010. Retrieved 12 July 2010.
  10. ↑ "PM says no carbon tax under her govt". News.ninemsn.com.au. Archived from the original on 2 May 2012. Retrieved 25 April 2012.
  11. ↑ Emma Rodgers (23 July 2010). "Gillard heckled at climate policy launch – ABC News (Australian Broadcasting Corporation)". Australia: ABC. Retrieved 25 April 2012.
  12. ↑ "Gillard names climate change committee – carbon tax possible". The Age . Melbourne, Australia. 28 September 2010.
  13. ↑ Packham, Ben; Massola, James (24 February 2011). "Australia to have carbon price from July 1, 2012, Julia Gillard announces". The Australian.
  14. ↑ (24 February 2011). Carbon price to begin from July 2012: Midday roundup Archived 16 April 2012 at the Wayback Machine . Retrieved 13 May 2012.
  15. ↑ Maher, Sid (25 February 2011). "PM ready for fight on carbon tax as Abbott vows 'people's revolt'". The Australian.
  16. ↑ Leslie, Tim (24 February 2011). "Gillard unveils Carbon Price Details". ABC News .
  17. ↑ Hudson, Phillip (26 February 2011). "Tony Abbott calls for election on carbon tax". Herald Sun. Retrieved 5 May 2011.
  18. ↑ Johnston, Matt (12 October 2011). "Carbon tax bills pass lower house of federal Parliament". Herald Sun. Retrieved 12 October 2011.
  19. ↑ AAP with Reuters (8 November 2011). "Carbon tax gets green light in Senate". The Sydney Morning Herald. Retrieved 9 November 2011.{{cite web}}: |author= has generic name (help)
  20. ↑ "Opposition vows to repeal carbon tax". The Sydney Morning Herald. 2 October 2011.
  21. ↑ Julia Gillard, Prime Minister (12 October 2011). Parliamentary Debates (Hansard) . Commonwealth of Australia: House of Representatives. p. 11607.
  22. ↑ Peter Ker; Adam Morton (20 February 2012). "Carbon tax fails to slow coal boom". The Sydney Morning Herald. Retrieved 28 February 2012.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.