Penny Wong (SA, Australian Labor Party, Minister for Climate Change and Water) Share this | Hansard source

We simply do not accept the premise of the good senator’s question. The impetus to drive investment in cleaner energy options, the incentive for Australian business to improve their energy efficiency, the incentive for Australian business to build those low-polluting industries and jobs of the future, is driven by the fact that you put in place a carbon price for the first time. You ensure that the market finally has the information it should have had, which is that climate change costs money and that is reflected in a carbon price. That is the way you drive incentive.

The senator seems to believe that the only way you can drive that sort of change is by making permits conditional. Let us remember that, notwithstanding the fact that the government has put in place unashamedly substantial measures of assistance to assist Australian industries in this transition through the design of the Carbon Pollution Reduction Scheme, the incentive comes from the carbon price. (Time expired)