Notable among the amendments negotiated is the permanent incorporation of a global recession buffer for emissions-intensive trade-exposed industries into assistance rates. This amendment provides industries eligible for 60 per cent assistance with a 10 per cent buffer, and industries eligible for 90 per cent assistance with a 5 percent buffer.

However, the 1.3 per cent carbon productivity contribution has been retained with the goal of all industries reducing their emissions rates.

APPEA Chief Executive Belinda Robinson said that “A well designed scheme would encourage the expansion of Australia’s LNG sector as more natural gas, producing between 50 and 70 per cent fewer greenhouse gas emissions, is substituted for coal in generating China’s and India’s electricity generation.”

APPEA has said that the introduction of a price on carbon will mean that electricity supplies which are less greenhouse gas intensive, such as natural gas, will become more cost competitive. As such, this package will provide incentive for more investment into less carbon intensive electricity generation.

Article continues below…

Ms Robinson said that given that there is a great deal in the package that has been deferred, delegated or made subject to review, “the industry will continue to work with both the Federal Government and the Opposition to ensure that the intent of the package is captured in the legal instruments that will underpin it.”