Australia passes 'historic' carbon emissions tax

[News_Editor]

Australia passes 'historic' carbon emissions tax

2011-11-09 09:27:12 GMT+7 (ICT)

SYDNEY (BNO NEWS) -- The Australian Senate on Tuesday passed a "historic economic reform" that imposes a carbon emissions tax on the country's 500 largest polluters, the Australian Associated Press (AAP) reported.

The Senate finally passed the 18 "Clean Energy Future" bills on Tuesday afternoon with 36 votes in favor and 32 against. The laws had created political havoc in Australia for some four years and have been debated for more than a decade.

About 500 high-emitting companies will now pay 23 Australian dollars (US$23.7) for each ton of carbon emissions, starting on July 1 next year. Half the revenue will be returned to households in the form of tax cuts and increases in pensions and family payments to offset the expected rises in energy bills caused by the new tax.

Another 9.2 billion Australian dollars (US$9.5 billion) over the first four years of the carbon pricing scheme will be paid to high-emitting industries with overseas competitors not subject to a tax. They will receive up to 94.5 percent of their emission permits for free, AAP reported.

Australia's conservative opposition parties strongly opposed the plan, arguing that these bills will result in the ruling Labor Party losing in the next elections in 2013.

National Party Senator Barnaby Joyce declared it was "a sad day when we reorganize our economy on the basis of a colorless, odorless gas ... it is the height of foolishness." He said the tax would do nothing to change the temperature of the globe "whether it is going up, down or sideways" but said Australian households will definitely be poorer.

The carbon price is designed to meet the emissions reduction target which has been endorsed by both major parties. It aims to reduce emissions by at least 5 percent before 2020, compared with the levels in 2000.

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