July 12, 2011

Industry assistance

A price on carbon will introduce costs to approximately 500 businesses which are comprised of Australia’s heaviest polluters. Some of these companies are termed “trade-exposed”, which means that they compete with offshore companies who may not be subject to the a similar carbon pricing scheme. There are six streams of industry assistance in the carbon price package.

The Jobs and Competitiveness Program provides $9.2 billion worth of free permits to trade exposed industries. They include steel manufacturers, aluminium producers and cement producers. They will receive either 94.5% or 66% of their permits free, depending on how carbon-intensive their production is. Liquified natural gas producers will receive 50% of their permits for free. The overall rate of assistance will be reduced by 1.3% per year, and the entire program will be reviewed by the Productivity Commission in 2014.

The Clean Technology Program provides $1.2 billion of grants to manufacturing industries to help them improve their energy efficiency and adopt low-pollution technology. It also includes funds for clean energy and energy efficient research and development. To qualify for such funding from the government, the company must match it dollar-for-dollar.

The Coal Sector Jobs Package provides $1.3 billion of transitional assistance over six years to implement carbon abatement technologies in the most polluting coal mines, rewarding them for reducing their emissions. It will be reviewed by the Productivity Commission in 2014.

The Steel Transformation Plan provides $300 million worth of transitional assistance over five years to encourage investment and innovation in more efficient and environmentally friendly practices in the steel industry.

The Energy Security Fund provides $5.5 billion to be used for negotiating the closure of 2000 MW of highly polluting power generators (such as Hazelwood power station which produces 1,600MW), as well as to provide cash assistance and free permits to companies who develop clean energy plans.

Small businesses (with less than $2million annual turnover) will see their instant asset write-off increased to $6,500 and be able to access a $40 million Energy Efficiency Information Grants program.

This post is based on a briefing paper from the Environment Defenders Office Victoria

  • Business will Benefit

    This is great news! Australia is leading the way for the world, now we can ask other countries to lift their game!

  • Teeny65

    I can see more cost without benefit. Why penalise business for poluting, when you can reward business that cut back pollition

  • Psychshift

    after researching what this carbon tax is all about im for it we all agree we need to change right those who are against this i ask then by doing what bitching about it least this is something its to force change in people and technology

  • Crossin_Floors

    So the LNP have put money into Jamie Oliver Cooking Classes, but obviously want fund truely needed things like increasing hospitals, so how would you ever even think of them garenteeing funding to those who are cutting down on pollution & helping Australia to a greener future, when they can’t even garentee that there will be no carbon tax under their party.
    obviously the party needs to look at their methods.
    Does anyone have a clue who these 500 top polluters are? because i have done multiple hours of reasearch and yet 450 of those business, i have no clue about.

  • Jamie Smith

    Leading the way
    What do we manufacture? What does Australia own? What is State owned? What does Australia owe?
    Look at Russia and compare. Do your own homework. I wish we had Putin instead, our politians work for corporations instead of working for us, they have no balls! Carbon tax is a scam. Don’t let arrogance take over common sense!