This report finds that the amount of domestic greenhouse gas emissions cut by the Government's carbon price package could be double that predicted by Treasury.
This flows not just from the carbon price itself, but from the impact of the full suite of complementary measures outlined in the package.It is based on the current default settings for the carbon price (cap set for a 5% target).
If implemented optimally, the Federal Government’s carbon price package could take Australia 83% of the way towards achieving its international commitment to reduce greenhouse gas emissions by 5% below 2000 levels by 2020 through domestic emissions reductions alone. This would enable Australia to reverse its growth in domestic emissions to 2000 levels.
These domestic abatement opportunities are in addition to internationally sourced abatement opportunities. This provides solid evidence for increasing Australia’s 2020 pollution cap, to be considered by the independent Climate Change Authority.