Wednesday 06 Oct 2021 | 15:48 | SYDNEY
Wednesday 06 Oct 2021 | 15:48 | SYDNEY

The ETS on ice


Fergus Hanson


5 May 2009 16:47

There was no need for Annabel Crabb to cast around for odd but quirky tales for a story this morning the big story of the day has all the fodder anyone needs. In case you missed it, Australia's Emissions Trading Scheme has been postponed; a day or two after the announcement of plans for a massive build up in defence assets. Her wrap-up was cutting:

Mercilessly, the Prime Minister spelled out the details of the tough new measures. First, there would be a year's delay. Ouch! As if that alone weren't brutal enough, big polluters would be forced to accept more money from the Government. And they would be obliged to pay a carbon price that has been remorselessly lowered to $10 a tonne by rapacious Rudd.

$10 a tonne for some, but big polluters it seems will be quaking in their boots at the 55¢ a tonne they'll now be up for. For the closet red-tape lovers out there, there was also good news: the new Brussels-ian layers of complexity look set to have the Europeans green with envy.

For others, it hasn't all been good news. Up until yesterday there was a carbon price factored in to forward electricity contracts from 1 July 2010. That buffer was sold off after the announcement the scheme would be delayed, meaning any traders who had taken the government at its word and hedged their positions potentially stood to lose. Most big businesses must have made similar provisions for the prospective scheme. You'd hope the latest approach provides more certainty than the last one.