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Prime Minister Julia Gillard’s determination to enforce a carbon price may become a reality sooner rather than later.

On 24 February 2011, Ms Gillard announced the nation would face a carbon price scheme from July 2012 onwards.

The scheme would effectively place a ceiling on the cost of emitting greenhouse gases for the first 3 years, after which the proposed cap-and-trade system would be enforced.

Ms Gillard’s Government will likely announce more details of the plan over the next few months – which will include an indicative initial price per ton of carbon emitted.

Under the proposed plan, agricultural emissions seem to be initially be excluded from the scheme but farmers will be compensated for any efforts they make to cut emissions.

Despite Ms Gillard’s announcement, Greg Combet (Minister of Climate Change) has suggested “there's a lot of detailed work to do”, with no decision yet made regarding either a starting price for carbon, nor what support mechanisms will be implemented to provide support/compensation to businesses and households.

Read Business SA's media release regarding the proposed carbon tax here.

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