Carbon Pricing Mechanism
The Climate Change Authority will review and make recommendations on the carbon price (excluding household assistance and the Jobs & Competitiveness program) in the second half of 2016 with subsequent reviews in 2018 and then every five years.
The Clean Energy Act 2011 stipulates the matters that will be covered by the review (see Section 288), including:
- coverage
- reporting
- auctions
- price floor and price cap
- setting pollution caps
- eligibility of domestic offsets and international units
- borrowing of carbon units
- functions and powers of the Clean Energy Regulator
- relationship between the Act and the Carbon Farming Initiative, and
- other matters as specified by the Minister.