The main issue identified is that for those companies which undertook early action to abate greenhouse emissions, many through the Federal Government’s own Greenhouse Challenge program, will not be entitled to claim credits under the proposed scheme. This is disappointing as the government has repeatedly stated that no company taking early action would be disadvantaged and also that these companies should be rewarded for such early action.
Such companies will now have much higher marginal costs for further abatement compared to companies that undertook no action. Perversely, such companies that lagged behind are now in a better position to claim credits due to their lower marginal costs of abatement. AEBN recommended the government consider rewarding such companies by use of a supplemental grants program. Other detailed issues associated with the proposed credit market were also discussed.
Download the submission: Submission on the Early Abatement Incentives Discussion Paper -- 158.03 kB 
