The topic examines development of climate law and policy in Australia at the national level including greenhouse gas reporting arrangements and regulations attempting to reduce greenhouse gas emissions.

National greenhouse and energy reporting

The National Greenhouse and Energy Reporting (NGER) scheme, established by the National Greenhouse and Energy Reporting Act 2007 (NGER Act), is a single national framework for reporting and disseminating company information about greenhouse gas emissions, energy production, energy consumption and other information specified under NGER legislation.

The objectives of the NGER scheme are to:

• inform government policy
• inform the Australian public
• help meet Australia's international reporting obligations
• assist Commonwealth, state and territory government programmes and activities, and
• avoid duplication of similar reporting requirements in the states and territories.

The Clean Energy Regulator administers the NGER Act, its legislative instruments, and related policies and processes.

Carbon pricing

Australian carbon pricing scheme covering four of the six GHGs counted under the Kyoto Protocol – carbon dioxide (CO₂), methane (CH₄), nitrous oxide (N₂O) and perfluorocarbon (PFC) – was introduced by the Gillard Government in 2011. The Scheme covered the following emissions sources:

• the stationary energy sector
• industrial processes sector
• fugitive emissions (other than from decommissioned coal mines), and
• emissions from non-legacy waste.

Overall, the broad architecture of the Clean Energy Future regime, and in particular the carbon pricing scheme, seemed to resemble in some aspects the design of the proposed ACPRS. However, in some respects, the carbon price was a substantial improvement on the heavily compromised ACPRS. Generous compensation for affected industry was a temporary measure and based on historic emissions levels: thus the incentive to reduce emissions was not eroded. The assistance package for households was designed to compensate low and medium income earners rather than high income earners. Raising the income tax threshold removed about a million low income taxpayers from the income tax system. Further, the range of supporting measures designed to encourage carbon farming, energy efficiency and green innovation provided a significant improvement over the ACPRS.

Direct action plan

The Direct Action Plan was introduced to ‘efficiently and effectively source low cost emissions reductions that will contribute towards our 2020 target’. The Direct Action Plan includes as a centrepiece the Emissions Reduction Fund (ERF), designed to provide incentives for GHG reduction activities across the entire Australian economy. Under the ERF the Government pays for projects that will reduce CO2 emissions at minimal cost. Funding from the ERF is allocated through auctions.

Readings

1. National Greenhouse and Energy Reporting. Available at http://www.climatechange.gov.au/reporting
2. More about – National Greenhouse and Energy Reporting – Clean Energy Regulator website. Available at http://www.cleanenergyregulator.gov.au/NGER/Pages/default.aspx
3. Guglyuvatyy E and Stoianoff N (2016) ‘Carbon Policy in Australia – A Political History’ in Stoianoff N, Kreiser L, Butcher B, Milne J E and Ashiabor H (eds.) Green Fiscal Reform for a Sustainable Future – Reform, Innovation and Renewable Energy, Edward Elgar Publishing. Available at http://www.austlii.edu.au/cgi-bin/viewdoc/au/journals/UTSLRS/2016/25.html
4. Carbon Pollution Reduction Scheme and Carbon Pricing Mechanism: comparison of selected features. Available at http://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id%3A%22library%2Fprspub%2F932760%22
5. Direct Action Plan. Available at http://www.environment.gov.au/clean-air