Productivity Commission releases carbon policy assistance schemes discussion paper
The Productivity Commission has released a consultation paper on the reviews of carbon policy assistance schemes for emissions-intensive trade-exposed activities, the coal mining sector and the steel industry that it has been commissioned to undertake.
The paper sets out the nature of the tasks the Commission has been assigned as a first step in stakeholder consultations.
The Clean Energy legislation provides for assistance to emissions-intensive trade-exposed (EITE) activities through the Jobs and Competitiveness Program (JCP). In addition, assistance will be provided through the Coal Sector Jobs Package and the Steel Transformation Plan (STP).
The Commission has four main tasks:
- a review of fuel excise arrangements
- ongoing capability development including monitoring and quantification of international mitigation policies
- industry impact reviews including:ad hoc reviews of the impact of the carbon pricing mechanism on a specific industry, if requested by Government;
- reviews into the competitiveness of the two EITE steel activities, if requested by an eligible steel industry participant;
- reviews of the extent to which coal suppliers are passing the cost of the carbon price through to the two EITE steel activities, if requested by an eligible steel industry participant;
- review of the impact of the carbon price and associated assistance on the coal mining industry, if requested by Government;
- reviews of assistance under the JCP including
- scheduled reviews
- earlier reviews of specific EITE activities, if requested by Government.
The paper sets out the methodology and timeline for the Commission to undertake these tasks. The discussion paper is available at http://www.pc.gov.au