Joe Ludwig (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | Hansard source

The Minister for Climate Change and Energy Efficiency has provided the following answer to the honourable senator's question:

The Australian Government, through measures such as the Clean Energy Future package, has committed to achieve a 5 per cent reduction in carbon dioxide equivalent emissions from 2000 levels by 2020. According to Treasury modelling in Strong Growth, Low Pollution, this is a 23 per cent reduction from the projected emissions level in 2020 without a carbon price.

The Clean Energy Future package is broadly Budget neutral over the forward estimates period.

The marginal cost of abatement achieved by the carbon pricing mechanism will be equal to the carbon price. This will vary over time.

The Productivity Commission, Professor Ross Garnaut, the Grattan Institute and the Organisation for Economic Co-operation and Development have advised that a price on carbon is the most cost effective and efficient way to achieve abatement of greenhouse gas emissions.

The Treasury modelling suggests that economic growth will continue to be strong under a carbon price.