Howard's surprising climate contribution

With Labor having problems with its carbon pricing scheme and the Coalition's Direct Action plan facing heavy criticism, it might be wise to build on our most successful climate policy – the Howard-introduced RET.

Recent news reports suggest that the carbon pricing scheme, even if it does not get scrapped by the next government, faces a bleak future. The European Union, with which Australia's emissions trading scheme will be linked from July 1 2015, is plagued by a very large oversupply of permits and a depressed  carbon price. Does this mean that Australia should consider bringing back the carbon floor price? Or does this mean that Australia should reconsider the carbon pricing scheme as the centrepiece of Australia's climate change policy?

The carbon pricing scheme

The main carbon pricing legislation (The Clean Energy Act 2011 (Cth)), divides the carbon pricing scheme into the following two phases:

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