Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

asked the Minister representing the Treasurer, upon notice, on 18 August 2011:

With reference to the Treasury Carbon Tax modelling, Strong growth, low pollution: Modelling a carbon price:

Given that in relation to emissions intensity in the global electricity generation sector, a noticeable feature of Chart 3.12 in the Treasury modelling is that, leaving aside the two big 'steps down' in this chart, it does not otherwise show much improvement in emissions intensity (either in the baseline or the medium global action scenario) until around 2026-27, when emissions intensity starts to drop steadily: Is this driven by the modelling's assumption about when carbon capture and storage becomes commercially viable; if not, what is driving it.

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

The Treasurer has provided the following answer to the honourable senator's question:

The projected emission intensity of electricity output is affected by the projected take up of renewable, nuclear and carbon capture and storage (CCS) technologies as shown in the Chart 3.13 in the Strong growth, low pollution (SGLP) report.

The modelling assumption about the availability of CCS technology is in line with other studies, such as the International Energy Agency's World Energy Outlook 2010.