Combet's carbon tax game-changer

The decision to link with the EU ETS and scrap the price floor has the potential to reduce Australia's carbon price, but the counter story is that if Europe acts to strengthen its scheme, Australian lobbyists will have little power to stop them.

Minister for Climate Change, Greg Combet, today announced some major changes to the operation of the carbon pricing scheme.

The key changes are:

-- The $15 floor price on Australian carbon permits will not be implemented.

-- Companies will be allowed to use CERs up to a maximum of 12.5 per cent of their liability, down from 50 per cent.

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