Australia backs carbon tax laws

The Australian Senate has passed legislation on pollution that will tax carbon emissions. Charlotte Reid has more.

The Australian Government approved controversial legislation on November 8th, that will tax carbon emissions from the country’s heavily polluting industries.

After the Clean Energy Act had been approved by the senate, Australian Prime Minister Julia Gillard said, “Today we have made history. After all those years of debate and division, our nation has got the job done.”

Last month, the bill passed through the lower house by 74 votes to 72 [paywall]. Similarly, the vote was tight in the senate, too, with 36 votes in favour and 32 against.

The Government has set the initial price per tonne of carbon at $23 Australian dollars, which is the equivalent of £14.80 in the UK. It is expected that the carbon tax will cut 159 million tonnes of carbon dioxide by 2020.

The tax will be introduced on July 1st 2012 and will be applied to Australia’s 500 biggest polluting companies.

Meanwhile, during the budget talks in March this year, the UK Government announced their plans to introduce a carbon tax in 2013.

Chancellor George Osborne stated that a carbon floor price will be introduced, charging at least £16 per tonne in 2013 and rising to £30 in 2020.

Osborne said during the budget talks, that by introducing the tax the UK will “become the first country in the world to introduce a carbon price floor for the power sector”.