Summary

Part of a package of seven bills to link Australia’s carbon pricing mechanism to overseas emissions trading schemes from 1 July 2015, the bill amends the:

to: remove the price floor for carbon units by removing the surrender charge on eligible international emissions units and the requirement for a minimum auction reserve price; restrict the quantity of eligible Kyoto units that liable entities can use to discharge their carbon pricing liabilities; provide for the calculation of an equivalent carbon price that reflects liable entities’ cost of compliance under a linking arrangement; increase the limit on advance-auctioned carbon units; prevent units being issued at auction more than three years in advance of their vintage year; change the treatment of relinquished carbon units; and enable regulations to be made to determine how specific circumstances relating to the supply and use of natural gas are treated; to enable: European allowance units to be held in the Australian National Registry of Emissions Units; and the Clean Energy Regulator to issue and transfer Australian-issued international units in the event that a direct link with a foreign emissions trading scheme is not possible; to adjust the calculation of the equivalent carbon price to provide that it remains consistent with the compliance costs of liable entities under the carbon pricing mechanism with linking arrangements; and to enable the minister to determine methods to measure and adjust amounts of designated fuels for the purposes of ascertaining potential greenhouse gas emissions. Also repeals the .