Passing of carbon price gives Australian business more investments certainty: experts

CANBERRA, Oct. 12 (Xinhua) — The passing of carbon pricing legislation will provide Australian business more certainty for their investments, and help to bring to prominence Australia’s special place in the world as an research and development leader in renewable energy technology, Australian experts told Xinhua on Wednesday.

Australian federal government’s emissions trading legislation passed the Lower House by 74 votes to 72. The bills will now go to the Senate next month, and will pass with the support of the Greens.

According to Director of the Center for Climate Economics and Policy at Australian National University, Dr Frank Jotzo, companies will from now on adapt their operations to the carbon price, and investment decisions will be taken with more consideration of emissions savings and energy efficiency.

He told Xinhua that Wednesday’s vote on carbon pricing legislation gives businesses more certainty for their investments, after many years of policy uncertainty, and once the scheme is in place, most industries will not be too eager to get rid of it again.

“The detailed design will always be contentious, and no doubt the scheme will evolve over time, along with changes to the overall policy landscape affecting greenhouse gas emissions,” he said.

“But the fundamental point is that putting a price on carbon is the economically best way of reigning in emissions growth.

“That was voted in today could well be the first step on the journey to effective and economically sensible climate policy in Australia.”

Meanwhile, Head of the School of Photovoltaic and Renewable Energy Engineering at the University of New South Wales, Dr Richard Corkish said the advent of the emissions trading scheme and the associated support for clean energy developments in the coming years is very exciting.

He said the move will bring issue of global warming back to its rightful place as the most important facing our generation, while it will also bring to prominence Australia’s special place in the world as an research and development leader in renewable energy technology.

“It will encourage us to discuss our special advantages that allow us to be one of the few developed countries that could very easily be 100 percent reliant on renewable energy,” he said. ” This is a very positive step!”

The 24 U.S. dollars a tonne of carbon tax is expected to start from July 1, 2012. The tax is set to increase 2.5 percent each year for three years, and will switch to Emissions Trading Scheme in 2015.

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