Under current law, the carbon pricing mechanism applies to Australia’s biggest polluters who have to report on, and pay a price for, their carbon pollution.
Generally, if a facility meets or exceeds the threshold of covered emissions with a carbon dioxide equivalence (CO2-e) of 25 000 tonnes in a financial year, the person responsible for such a facility will be liable under the carbon pricing mechanism.
These people are known as liable entities. The publicly available list of liable entities under the carbon pricing mechanism is called the Liable Entities Public Information Database (LEPID).
Liable entities still need to report their total emissions number for the 2012-2013 financial year by 31 October 2013. They also need to acquire and surrender enough units to match that emissions number by 1 February 2014 or they will have to pay a unit shortfall charge.
Following the 2013 election, the Australian Government will implement a Direct Action Plan which is designed to efficiently and effectively source low cost emissions reductions.
The Direct Action Plan will include an Emissions Reduction Fund to provide incentives for abatement activities across the Australian economy and will complement the Carbon Farming Initiative.
The Government is preparing legislation that will repeal the Clean Energy Act 2011 and related legislation that establishes the carbon pricing mechanism and will shortly commence consultation on the development of the Emissions Reduction Fund.
Further information on the repeal of the Clean Energy Act 2011 and related legislation and the design of the Emissions Reduction Fund will be available shortly on the Department of the Environment’s website.