Australia backs carbon tax
The Australian senate has approved the Clean Energy Act, which will make the country’s 500 worst polluters to pay for their carbon emissions from the 1st July next year.
The Australian senate has approved the Clean Energy Act, which will make the country’s 500 worst polluters to pay for their carbon emissions from the 1st July next year. The bill passed a vote in the lower house by 74 votes to 72 a month ago and has now passed through the senate by 36 votes to 32.
Australia is one of the world’s largest emitters per capita and this brings to an end the opposition of the country toward carbon reduction. Even so, Australia is likely to feel the effects of climate change much sooner and more severely than many other nations and so it is essential that it is seen to take a key role in carbon reduction.
The government, headed by Prime Minister Julia Gillard required the support of the Greens to pass the act. The opposition argues that the act would mean job losses and increase the cost of living. As a result, the legislation is likely to be repealed in 2013 if the opposition wins the election.
Ms Gillard has said it is "a win for those who would seek their fortunes and make their way by having jobs in our clean energy sector; today we have made history. After all those years of debate and division, our nation has got the job done". Industry is particularly against the scheme due to the high price of carbon, set at $23.80 compared to much lower rates in the EU scheme.
The act is likely to affect many industries including: mining, airlines, steel producers and energy firms. Domestic fuel prices are likely to rise also, as production costs are passed on to the consumer.
