The Australian Greens

A new report released today by the Grattan Institute economic think tank backs an approach to carbon pricing very close to that proposed by the Greens in January this year, the Australian Greens said.

"Setting a floor price for carbon is a natural fit with our proposal to start with a fixed price for carbon," Australian Greens Deputy Leader,
Senator Christine Milne, said.

"The idea of a hybrid of carbon tax and emissions trading is one the Greens are very interested in and the Grattan Institute's positive
contribution to the debate is very welcome.

"The Institute suggests increasing the floor price at 4% above inflation each year, the same rate of increase the Greens propose for the interim carbon tax.

"The Grattan Institute report also backs up the Greens' argument that emissions reductions are, in practice, always found to be cheaper and
easier than governments and business fear.

"That is why, unlike the Grattan Institute, we believe it would be better to start carbon pricing without a target. Once we get the carbon
price in place, we will be able to see how much higher we can aim.

"With a debate starting about the role of complementary measures after carbon pricing is introduced, the Institute's recognition that there are often good economic justifications for direct policy interventions in addition to carbon pricing is most welcome.

"Clearly there are a range of non-price barriers to emissions reducing actions such as energy efficiency. The Greens have also long argued that direct grants programs for renewable energy should be replaced with more broadly based schemes such as feed-in tariffs and loan guarantees.

"The carbon price negotiations will start getting down to tin tacks early next year. More serious contributions to the debate such as this
report from the Grattan Institute will be most welcome."