Under Labor, electricity generation will be covered by a “cap” on carbon pollution that reflects a proportional share of the overall emissions reduction task set for the broader ETS. Each generator will be allocated a baseline that is calculated according to a sector-wide emissions intensity baseline.
Labor will implement the model proposed by the Australian Energy Market Commission for electricity generators. This scheme provides for a fully internal market in carbon, which according to the AEMC will operate “without a significant effect on absolute price levels faced by consumers”.
Labor recognises that the electricity sector is unique to the economy, and so this package of measures has been structured to best meet our climate change targets in the most efficient way. Labor has designed policy settings to strengthen energy security, apply downward pressure on power prices, and drive the transition to clean sources of power.
Supporters of an Emissions Intensity Scheme (as at 29 May 2017)
- Australian Energy Market Commission
- Business Council of Australia
- Climate Change Authority
- CSIRO and Energy Networks Australia
- National Farmers Federation
- Origin Energy
- Young Nationals
- Ross Gittens: A ‘fourth way’ in cutting carbon emissions
- Ross Gittens: Experts agree emissions intensity scheme the way to go
Labor’s Climate Change Action Plan