Description/achievement of initiative
The Clean Energy Legislative Package includes the carbon pricing mechanism and delivers support for jobs and competitiveness and Australian's economic growth, while reducing pollution. Households will be assisted through tax reform and increased payments.
The Legislative Package includes:
1. Fixed price period The carbon pricing mechanism will commence on 1 July 2012, with a price that will be fixed for the first three years. The price will start at $23 per tonne and will rise at 2.5 per cent each year in real terms.
2. Emissions trading scheme On 1 July 2015, the carbon price will transition to a fully flexible price under an emissions trading scheme, with the price determined by the market.
The $9.2 billion Jobs and Competitiveness Program will provide significant support for jobs and protects the competitiveness of these emissions-intensive trade-exposed industries. An Energy Security Fund will be established to ensure there is a smooth transition which preserves energy security.