Today, 17 July 2013, the Federal Government released a Policy Summary paper explaining how it proposes change the design of the Carbon Pricing Mechanism associated with changing FY15 from a “fixed charge year” to a “flexible charge year”.
Please click here for a copy of this paper which importantly confirms that draft legislative changes to the Clean Energy Act 2011 (Cth) and associated legislation will be the subject of public consultation. In particular, the default pollution cap for FY15 is proposed to be 25 million tonnes below covered emissions for FY13 and two advance auctions of FY15 carbon units will be held between February and June 2014, with an opening price of 80% of the EUA price.
You will have many questions about the proposed design changes including when (if at all) they may be implemented. Please do not hesitate to contact us for assistance in understanding these developments and the potential impacts on your activities.