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

Maybe on a couple of things, Senator Xenophon. A similar problem occurs with a scheme you were advocating—in fact, to a greater level. From my recollection, a greater level of international importation is assumed under the Frontier model. I have given you my answer about our view about domestic emissions and the rationale for that. I failed to answer one aspect, which was the international carbon price. It is the case that, if you have a scheme where you are able to trade in the way that the Australian scheme has been designed to do, you are looking at a situation where the Australian carbon price is likely to be equivalent to the international carbon price. Again, I think that is quite reasonable. We want a situation where there is increasingly a global carbon price and an increasing number of global carbon markets, where the private sector can invest in abatement.