The Australian government has announced plans to introduce a carbon price mechanism from 1 July 2012. There will be a three-year fixed price period. The carbon price will start at $23 per tonne in 2012-13 and will be $24.15 in 2013-14 and $25.40 in 2014-15. From 1 July 2015 onwards, the carbon price will be set by the market. Under the plan, Australia will cut 159 million tonnes a year of carbon pollution from its atmosphere by 2020 – the equivalent of taking over 45 million cars off the road.
In the article below, Elisa de Wit, Anthony Hobley, Noni Shannon and Dominic Adams from law firm Norton Rose Australia outline the impact of the carbon pricing mechanism on businesses.