Carbon pricing mechanism

Carbon pricing mechanism repeal

The Clean Energy Act 2011 has been repealed. This abolishes the carbon pricing mechanism from 1 July 2014. Liable entities must still meet their carbon price obligations for the 2013-14 financial year.

Content on the Clean Energy Regulator website will be progressively updated to reflect these changes. More information can be found on the carbon pricing mechanism repeal page.

Carbon pricing mechanism repeal

The Clean Energy Legislation (Carbon Tax Repeal) Act 2014 has repealed the Clean Energy Act 2011. This abolishes the carbon pricing mechanism with effect from 1 July 2014.

Liable entities must still meet their carbon price obligations for the 2013-14 financial year, including reporting their emissions number to the Clean Energy Regulator under section 22A of the National Greenhouse and Energy Reporting Act 2007 by 31 October 2014, and acquitting their final carbon price liability for 2013-14 by 2 February 2015.

Carbon pricing mechanism for the 2013-14 financial year

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 2013-2014 financial year by 31 October 2014. They also need to acquire and surrender enough units to match that emissions number by 2 February 2015 or they will have to pay a unit shortfall charge.

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Final surrender period for 2013-14

Liable entities with an emissions number (EN) must report by midnight 31 October 2014 and surrender enough units to match their EN by midnight Monday 2 February 2015.

Carbon pricing mechanism repeal

The Clean Energy Act 2011 has been repealed. This abolishes the carbon pricing mechanism from 1 July 2014. Liable entities must still meet their carbon price obligations for the 2013-14 financial year. More information can be found on the carbon pricing mechanism repeal page.

Introduction of the Carbon Farming Initiative Amendment Bill 2014

On 18 June 2014 the Government introduced to Parliament a bill to implement the Emissions Reduction Fund. The Carbon Farming Initiative Amendment Bill 2014 will expand the Carbon Credits (Carbon Farming Initiative) Act 2011.