The Low Carbon Growth Plan for Australia, released in 2010, quantifies the size and cost of a range of opportunities to reduce Australia's greenhouse emissions using existing technology. It found that Australia could reduce emissions by 25% below 2000 levels for a lower than expected cost. It also found that a range of barriers currently hinder the implementation of these opportunities.
The Australian Government's carbon price package announced in 2011 - Securing a Clean Energy Future - aims to steer our economy towards a low emissions future. To achieve this, it puts a price on carbon pollution and implements support action through a range of complementary measures.
The carbon price package has the potential to reduce Australia’s domestic greenhouse gas emissions by 124 million tonnes per year - more than double Treasury’s modelling of domestic abatement achievable through the carbon price alone.
This flows not just from the carbon price itself, but from the impact of the full suite of complementary measures outlined in the package.
If implemented optimally, the Federal Government’s carbon price package could take Australia 76% 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.