Carbon Tax Fast Facts
What is a Carbon Tax?
A carbon tax is an environmental tax that is levied on energy sources which emit carbon dioxide. It is a form of carbon pricing. The ultimate purpose of a carbon tax is to reduce the emissions of carbon dioxide by companies in order to slow global warming.
How does Carbon Pricing work?
Watch this interesting animation showing how a carbon price can reduce carbon pollution and move towards a clean energy future.
What is the cost of Carbon?
The carbon tax will initially be set at $23 per tonne of emissions, and will increase gradually until 2015 when a trading scheme will begin which will let the market set the cost.
What is the emission reduction target by 2020?
The Government has committed to reduce emissions by 5 per cent from 2000 levels by 2020 regardless of what other countries do, and by up to 15 or 25 per cent depending on the scale of global action. These targets will require cutting expected emissions by at least 23 per cent relative to business as usual in 2020.
Other future targets?
The Government further committed to a new 2050 target to reduce emissions by 80 per cent compared with 2000 levels. This target will be legislated.
How much of Australia’s carbon emissions will be covered by this carbon tax?
The carbon price scheme will cover around 60% of Australia’s emissions. A further 8% (approximately) will be covered in effect by fuel tax excise reductions.
How much are the 50 largest polluters paying?
The carbon tax will be borne directly by a proportionally small number of companies and sectors, with 75% of the carbon liability being met by approximately 50 largest polluters (1)
What are the benefits of a Carbon price?
Another animation from cleanenergyfuture.gov.au showing the benefits of a carbon price.
Biggest emitters?
According to the 2010 National Greenhouse and Energy Reporting (NGER) data, 73% of emissions are generated by two sectors- utilities (48%) and mining (25%). The next four most emitting sectors are energy (7%), steel (4%), building materials (3%), and transport and logistics (3%). (2)
How will the carbon tax affect your investments?
Investors need to review the impact the carbon tax will have on their investments. Our advisers at Ethical Investment Advisers can assist you; contact us at info@ethicalinvestment.com.au or our advisers direct.
To find out more about how the carbon tax could affect your investments, read our article: The Carbon Tax and Ethical Investments
(1) GS Equity Strategy Carbon Tax – Generous Compensation to Households and Business
(2) Ref: Adrian Toller, Advance Asset Management “Impact of the Carbon Tax” and “A Price on Carbon” July 2011
Disclaimer
The contents of this article are intended as general advice only. No specific person’s circumstances, financial situation or objectives have been taken into consideration. You should not act on the information provided without seeking personal advice from an appropriately qualified financial planner. While the source has been verified as reliable, the actual content has not been checked for accuracy. Consequently Ethical Investment Advisers does not warrant the accuracy of the information nor accept liability for any errors in the data.