The Hon. Greg Hunt MP
Minister for the Environment
Consultation opens on Emissions Reduction Fund
16 October 2013
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The Government has today released its Terms of Reference for the Emissions Reduction Fund as part of its Direct Action Plan.
The Government is urging business and community groups and organisations to make submissions in response to the Terms of Reference.
The Government yesterday released draft legislation to abolish the Carbon Tax because it hurts jobs, drives up cost of living and domestic emissions continue to rise. There is a better way.
The ERF will provide incentives for companies to reduce their emissions to achieve a five per cent reduction in emissions by 2020. It will be a market mechanism designed to simply and efficiently source the lowest cost abatement.
Unlike the Carbon Tax, the ERF will actually reduce our domestic emissions by five per cent by 2020.
And unlike the Labor's $9 billion a year Carbon Tax, the costs of the ERF will be capped at $300 million (2014-15), $500 million (2015-16) and $750 million (2016-17) over the forward estimates.
The message for Labor is clear, will they allow repeal of the Carbon Tax to pave to way for a climate policy that will achieve our targets or will they continue to support higher power prices.
Submissions in response to the Terms of Reference will be considered in development of a Green Paper. This will be released in December 2013.
A White Paper outlining the final design of the Emissions Reduction Fund will be released early 2014.
The Emissions Reduction Fund is to take effect from 1 July 2014.
The Terms of Reference are available on the Department's website at www.environment.gov.au/emissions-reduction-fund and the consultation process remains open until 18 November 2013.