'Clean Energy Future Plan' - Briefing for Local Government: Update July 2011

On 10 July 2011, the Prime Minister released the Federal Government's 'Clean Energy Future Plan'  (Plan). 

The centrepiece of the Plan is the introduction of a carbon price starting at $23 per tonne of carbon pollution on 1 July 2012.  This price will be payable by Australia's 500 most carbon-intensive businesses in the stationary energy, waste, rail, domestic aviation, shipping, industrial processes and fugitive emissions sectors for every tonne of carbon pollution they produce.  A fixed carbon price will remain in place for 3 years at which time, on 1 July 2015, the fixed price will be determined by the market under a cap-and-trade emissions trading system.

The carbon price will be payable for landfill facilities that produce 25,000 tonnes of carbon pollution or more from 1 July 2012.  This is important for councils that have sole or joint operational control in relation to a large landfill facility.  Moreover, to avoid waste displacement from covered to non-covered landfill facilities, a threshold of 10,000 tonnes of carbon pollution will apply to landfill facilities within a prescribed distance of large landfill facilities.  Therefore, councils that have operational control over smaller landfill facilities will also need to assess whether or not they are liable to pay the carbon price.

In this briefing, Maddocks identifies the Plan's key features and examines issues arising from the Plan likely to be of particular significance for local government.

To read full Update please download PDF.