Carbon Price

The Australian Government’s climate change plan

The Clean Energy Future website www.cleanenergyfuture.gov.au has been developed to communicate the Australian Government’s plan for creating a prosperous and sustainable Australia. The website includes information on the carbon price; renewable energy; energy efficiency; and land use, and how these four elements will work together to ensure a Clean Energy Future for Australia.

The website is the Australian Government’s official website on a Clean Energy Future and was launched by Prime Minister Julia Gillard on 10 July 2011.

Carbon pricing and transport

The Australian Government is introducing a carbon price into the Australian economy. This will cut pollution and drive investment, helping to ensure Australia’s prosperity in the low pollution world of the future.

Transport is the fourth largest contributor to Australia’s emissions, accounting for approximately 15 per cent of total emissions.  Recognising this, the Australian Government is committed to driving emissions reductions across the various transport modes.

What does this mean for households?

The Australian Government understands that fuel costs make up a significant share of household budgets. The Government has decided therefore that transport fuels for cars and light vehicles will be permanently excluded from the carbon price.

The Government is also supporting households to reduce their transport fuels costs—and subsequently their transport fuel emissions—through a number of complementary measures:

• Introducing mandatory CO2 standards on all light vehicles from 2015—this will deliver real cost savings for motorists by improving fuel efficiency in all categories of new light vehicles, and adopting a mandatory approach is consistent with the approach of other major car manufacturing countries
• The Green Vehicle Guide (www.greenvehicleguide.gov.au) and the Fuel Consumption Label are two initiatives that help consumers choose vehicles that use less fuel—supporting Australians to make more informed decisions about their choice of vehicle, which can result in lower fuel costs and reductions in emissions.
• Since 2007, the Government has committed $7.3 billion to improve urban passenger rail infrastructure—this investment provides urban households with a genuine alternative to private car travel.

The Government has a range of other measures in place to assist households with the impacts of the carbon price and to reduce their carbon emissions.  If you would like additional information on how you can reduce your overall cost of living and your emissions visit www.cleanenergyfuture.gov.au

What does this mean for transport industries?

The Australian Government is also helping transport industries to reduce their emissions.  The Government will send a price signal to transport industries through applying an effective carbon price on certain transport businesses, through reductions in existing fuel tax credits for rail, domestic shipping and from 1 July 2014 for heavy vehicles.  Changes to domestic aviation fuel excise will also apply.  Further information on the treatment of transport fuels under the carbon pricing mechanism is available at www.cleanenergyfuture.gov.au

What else is the Australian Government doing?

Introducing a carbon price into the Australian economy is one part of the Australian Government’s plan for cutting carbon pollution and supporting industries and households to reduce their emissions.  There are already a number of important initiatives currently underway—measures complementary to the carbon price—that will help drive change across the Australian economy.

Read more about the plan for a clean energy future at www.cleanenergyfuture.gov.au