Australia will set a price on carbon emissions next year in preparation for a trading program that could begin as early as 2015 aimed at curbing greenhouse gases.
The government will impose a price starting on July 1, 2012, Prime Minister Julia Gillard said in a statement today.
The amount of the tax, which Gillard didn’t specify, will be fixed for three to five years before the trading system begins and will then be determined by the global market, according to the statement.
“It is the cheapest and fairest way to cut pollution and build a clean energy economy,” Gillard said. “The best way to stop businesses polluting and get them to invest in clean energy is to charge them when they pollute.”
Alcoa Inc., the biggest U.S. aluminum producer, said it supported a “carefully designed” carbon price that doesn’t damage industry.
“Regardless of the approach taken, it is critical that the government’s climate change response ensures the sustainability and growth of what are world class alumina and aluminium assets in Australia,” Alcoa Australia Managing Director Alan Cransberg said in an e-mailed statement.
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