It considers the key characteristics of the proposed carbon price mechanism during the fixed and floating price periods, while also considering assistance that may be available and other business implications and decisions need to be considered.
- The carbon price mechanism will apply to all companies producing at least 25,000 tonnes of CO2 per year from scope 1 emissions (excluding electricity and fuels used for transportation).
- The government estimates a carbon price of $23 per tonne CO2-e, the cost per tonne of coal will be about $1.40 for the 'average non-gassy' mine
- To assist with the transition, the Government has announced assistance of $1.3 billion over 6 years for existing, but not new, mines
- $70 million over 6 years has been allocated for research on abatement in the coal sector.