Congratulations! The Senate has passed the Clean Energy Future legislation
The Senate, early in the afternoon on November 8, passed the Government's package to put a price on carbon pollution.
We welcome the package of measures as an important first step in laying the foundation for taking real action to tackle climate change.
The package provides:
- Fair compensation for the majority of households meeting any costs associated with the introduction of the scheme;
- Protection for jobs in trade exposed and emissions intensive industries; and
- Promotion of investment in clean energy technology and innovation and the creation of new jobs.
We took the position that the greatest long-term threat to Australian workers was to ignore the climate science and refuse to act.
Clean Energy Future
Federal Treasury predicts the prices of electricity, gas and food will increase by about $9.90 a week when the carbon price begins. The Gillard government plans to meet these household costs through cutting income tax and increasing in welfare payments like the Family Tax Benefit and pensions. The household assistance will be permanent and the government will review the adequacy of assistance each year.
Go
here to calculate impact on your household.
Some of the features of the compensation for households are:
- Over four million households will be compensated by more than the expected average price impact.
- Six million households will get assistance that covers the expected average price impact.
- Eight million households will get some assistance.
- The tax-free threshold will increase from $6,000 to $18,200. The threshold will be raised again in 2015 to $19,400.
- People on incomes under $80,000 will receive a tax cut in July 2012 and another in July 2015.
- There is additional support for 110,000 Australians who have high electricity bills because of medical equipment.
- Before the carbon price is introduced, people will receive lump-sum payment in advance to help with bills. After this, pensions, allowances and family payments will increase by 1.7%.
- Low-income households who need more assistance can apply for a $300 Low Income Supplement.
For more official government information about the carbon price package
visit the Clean Energy Future website. It has lots of additional information, including fact sheets and videos like the one above.
A price on pollution
The introduction of a price on pollution is fundamental for Australia to shift to a low pollution economy. A strong price on carbon is needed to provide a price signal to underpin the commercial viability of low pollution, renewable energy and energy efficient technologies.
Unions welcomed the Multi-Party Climate Change Committee's pricing mechanism, beginning with a fixed price in 2012 and moving to a full-scale emissions trading scheme within three years. A price on pollution will help change the economic behaviour of Australia, which is the highest per capita producer of pollution in the world. The revenue will go towards supporting jobs and communities into the future.
Around the world, action is being taken to respond to the challenge of climate change by reducing pollution and promoting clean energy sources. Worldwide investment in clean energy totaled $US162 billion in 2009, but only $US1 billion of this was in Australia. By 2020, it is projected that clean energy will be one of the world’s largest industries, totalling as much as $US2.3 trillion.
Australia needs to take prompt and decisive action to remain competitive and benefit from the global clean energy economy.
Moving to a low pollution economy
Unions are determined that adjusting to a low pollution economy must focus on support for emission-intensive and trade-exposed industries, measures to protect existing jobs, programs to attract investment in clean energy and production, and assistance to low income households.
Some industries and regional economies will be impacted more acutely than others. It is imperative that these communities are assisted to successfully adapt their industries and build new ones to ensure decent living standards, job opportunities and services continue to thrive in these areas.
We must start identifying and prioritising the green skills development, knowledge and work needed for a low pollution economy.
Through their involvement in the climate change consultation mechanisms, unions will ensure that Australian workers have a say in how the nation responds to climate change.
New technologies, industries and investment
A price on pollution will require assistance to emissions intensive and trade exposed industries, but this assistance must be conditional and tied to investments in renewable and low carbon technologies. The
ACTU called upon the government to develop policy and drive investment towards new and cleaner technologies, and new industries – to establish Australia as a global leader and to take advantage of economic opportunities.
Clean energy jobs
It is simply not true that the shift to a low pollution economy will result in job losses. Research commissioned by the ACTU and ACF demonstrates that Australia still has an unparalleled opportunity to create hundreds of thousands of ‘green collar’ jobs. Australia’s natural competitive advantage combined with our globally recognised skills and expertise can be harnessed to create real industry development and export opportunities.
Our 2010 joint report
Creating Jobs – Cutting Pollution: The Roadmap for a Cleaner, Stronger Economy shows how, with the right policy drivers to cut pollution, an additional 770,000 jobs could be created across the Australian economy by 2030.
Check out our
Clean Energy Jobs page for more details.
Southern Cross Climate Coalition
In 2008, the ACTU formed an alliance with the Climate Institute, Australian Conservation Foundation and Australian Council of Social Service. Known as the Southern Cross Climate Coalition, the alliance aims to advance a constructive and long-term agenda to unlock the substantial economic, social welfare and environmental opportunities that will emerge from Australia’s response to climate change.
CancĂșn Climate Change Conference, December 2010
Unions have secured protection of the rights of workers in the transition to a low-pollution economy in final negotiations at the United Nations climate change conference in CancĂșn. ACTU President Ged Kearney said inclusion of the interests of workers in the UN documents was a breakthrough that gave hope that action on climate change on a global level was progressing.
Downloads and Information
Clean Energy Future - Government website
Framework for an industry policy on climate change
Creating Jobs - Cutting Pollution: the roadmap for a cleaner, stronger economy
State of the Climate report (CSIRO and Bureau of Meteorology)
Green Gold Rush report
Green New Deal Statement
Towards an effective and fair response to climate change
Australia’s National Strategy for Energy Efficiency
Joint statement on economic stimulus
ACTU Global Warming Policy