Government killed emissions scheme despite knowing it could shave $15 billion off electricity bills

The Turnbull government is sitting on advice that an emissions intensity scheme - the carbon policy it put on the table only to rule out just 36 hours later - would save households and businesses across the country up to $15 billion in electricity bills over a decade.

While Malcolm Turnbull has publicly rejected this sort of scheme by claiming it would push up prices, an analysis in a Australian Electricity Market Commission report handed to the government months ago finds it would actually cost consumers far less than other approaches, including doing nothing.

It finds that would still be the case even if the government boosted its climate target to a 50 per cent cut in emissions by 2030.

Assuming average electricity use, the analysis by scheme architect Danny Price, of Frontier Economics, found costs would be $11.2 billion lower over the decade to 2030 if the government introduced the scheme and met its existing climate target.

Read Adam Morton’s story in the Melbourne Age - “Government killed emissions scheme despite knowing it could shave $15 billion off electricity bills.”

Garnaut critical of Federal Government's intentions

Ross Garnaut has been critical of the Federal Government’s plan to scrap the existing carbon tax in Australia.

Ross Garnaut criticizes
 Federal Government.

The Melbourne Herald-Sun reporting in a story headed: “Carbon policy pits Aus against US: Garnaut”, said the former government adviser and a prominent economist has questioned government intentions.

Mr Garnaut says China, Europe and U.S, are moving toward big efforts to combat climate change and Australia, through the scrapping of its detailed and sophisticated carbon laws, is fundamentally opposing that action.

He said that with existing policies, Australia would be still in the game and doing its fair share, but pursuing what’s proposed we would be out of the game and not doing our fair share.