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Australia: Senate votes against scrapping carbon price mechanism

20 Mar 2014 10:34:22 | edcm

Australian opposition parties voted against scrapping future emission trading on Thursday.

In a Senate vote, Labor and the Greens opposed abolishing the Carbon Price Mechanism (CPM) with 33 votes to 29 on Thursday.

The Clean Energy Bill, which seeks to repeal the CPM, was proposed by the Coalition government.

“The Senate´s rejection was as expected with Labor and the Greens maintaining their opposition to the carbon tax repeal as long as it´s not being replaced by an emissions trading system, “ said Yann Andreassen, Australian carbon market analyst at ICIS-owned Tschach Solutions.

Environment Minister Greg Hunt said the government would now return the bill to the lower House in an attempt to have it passed second time around.

The outcome of Thursday’s vote “paves the way for a new vote on the Carbon Tax Repeal bill package in the new Senate this July, where the government will have to secure a crossbench majority to pass the repeal legislation, ” Andreassen added.

The government also reintroduced the bill to abolish the Clean Energy Finance Corporation (CEFC) to the lower House.

The CEFC is a $10 billion ($6.5bn) fund established by the previous Labor government, to invest in Australian renewable energy and lower emissions technology.

The Senate rejected the CEFC repeal bill last December.

According to Australian law, following the three-month deferral, a second rejection would lead to a double dissolution trigger for the government. This would mean an election for both houses of Parliament.

However, Australian emissoins research firm Reputex called a potential double dissolution election “highly improbable”. Ling Ma

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