NETT releases Auction design report. August 2007 (PDF 1 mb)
This report sets out the results of a detailed consultancy on auction design.

NETT to report on broader coverage
Change to NETT Terms of Reference. July 2007

Prime Minister's Task Group  report released
The Prime Minister's Task Force on emissions trading released its report 1 June 2007

Emissions Reporting to commence 1 July 2008
The Council for the Australian Federation agreed at its 12 April 2007 meeting that national greenhouse emissions reporting would commence by 1 July 2008, either through purpose-built legislation or through the National Pollutant Inventory.

Emissions trading to commence by the end of 2010 (PDF 103 kb)

Change to NETT Terms of Reference

Background 

When the National Emissions Trading Taskforce was established in January 2004 by State and Territory Governments, its Terms of Reference directed it to examine a scheme which would ‘most likely focus initially on the stationary energy sector, but allow expansion to other sectors or an economy-wide scheme’.

Since 2004, the Taskforce has undertaken significant work on the design for a national emissions trading scheme and consulted widely with stakeholders around the country.  

Based on feedback from many stakeholders, and findings from continued analysis, State and Territory Governments have agreed to expand the Taskforce’s Terms of Reference.  The Taskforce will now consider a scheme with broader coverage than that specified in its original Terms of Reference, and is investigating whether it is appropriate for a national emissions trading scheme to include other sectors – beyond the stationary energy sector – or to have economy-wide coverage.

The Taskforce expects to present its final report to State and Territory First Ministers in the later part of 2007.

Terms of Reference for the National Emissions Trading Taskforce [Amended July 2007]

An emissions trading scheme offers flexible and cost effective options to meet greenhouse targets. Its potential has been recognised in the Kyoto Protocol, through which participating countries will be able to buy or sell part of their assigned emission allocation. The European Union has already established an emissions trading scheme to utilise this opportunity for emissions reductions.

In the absence of national leadership on greenhouse policy, State and Territory Governments have agreed to establish the National Emissions Trading Taskforce to develop a multi-jurisdictional emissions trading scheme driven by State and Territory governments.

The task of the National Emissions Trading Taskforce is to develop an agreed model for such a scheme which will:

• Provide a framework for Australian States and Territories to reduce greenhouse gas emissions and assist in meeting Australia’s Kyoto Protocol target;
• Position Australia for a carbon constrained future and emission reductions beyond 2012;
• Allow for consistency with international developments;
• Include coverage of the stationary energy sector, and may include coverage of other sectors or economy-wide coverage if this is considered appropriate; and
• Minimise the cost of compliance and administration for participants and the Regulator.

• Identify options for a scheme, including the extension of the NSW greenhouse benchmarks scheme or the adoption of a cap and trade system;
• Assess whether pre-existing schemes can be successfully harmonised with the scheme, including the Commonwealth Mandatory Renewable Energy Target;
• Focus on the use of Kyoto eligible greenhouse gas reduction activities;
• Assess and consider economic, social and environmental impacts of each option within each jurisdiction;
• Advise on adjustment measures where there are significant adverse impacts;
• Present the Taskforce’s preferred model to relevant Ministers in each jurisdiction for approval; and
• Provide Ministers with information regarding implementation issues and timelines as a basis for progressing activity.