Part of a package of seven bills to link Australia’s carbon pricing mechanism to overseas emissions trading schemes from 1 July 2015, the bill amends the:
Clean Energy Act 2011 to: remove the price floor for carbon units by removing the surrender charge on eligible international emissions units and the requirement for a minimum auction reserve price; restrict the quantity of eligible Kyoto units that liable entities can use to discharge their carbon pricing liabilities; provide for the calculation of an equivalent carbon price that reflects liable entities’ cost of compliance under a linking arrangement; increase the limit on advance-auctioned carbon units; prevent units being issued at auction more than three years in advance of their vintage year; change the treatment of relinquished carbon units; and enable regulations to be made to determine how specific circumstances relating to the supply and use of natural gas are treated;
Australian National Registry of Emissions Units Act 2011 to enable: European allowance units to be held in the Australian National Registry of Emissions Units; and the Clean Energy Regulator to issue and transfer Australian-issued international units in the event that a direct link with a foreign emissions trading scheme is not possible;
Fuel Tax Act 2006 to adjust the calculation of the equivalent carbon price to provide that it remains consistent with the compliance costs of liable entities under the carbon pricing mechanism with linking arrangements; and
National Greenhouse and Energy Reporting Act 2007 to enable the minister to determine methods to measure and adjust amounts of designated fuels for the purposes of ascertaining potential greenhouse gas emissions. Also repeals the
Clean Energy (International Unit Surrender Charge) Act 2011.