Shadow Minister for Climate Change, Greg Hunt, officially opened the 2013 CCN Live Conference at Doltone House in Sydney yesterday.
Hunt provided a detailed outline of how the Opposition plans to abolish the carbon tax, if elected on September 7, 2013.
It includes the establishment of a carbon purchasing fund, an emission reduction fund and a reverse auction.
"Whereas the carbon tax tries to drive up the price of basic services in order to force down use, with a massive deadweight loss, we will not provide a dollar unless there is an actual reduction of emissions; just like a contract for wheat, we only pay on delivery of actual abatement," Hunt said.
"The Coalition's Direct Action Plan will ensure Australia reaches its target of a five per cent reduction in emissions by 2020."
Hunt said the Emissions Reduction Fund will have an initial allocation of $300 million, $500 million and $750 million over the forward estimates period.
"This compares with the carbon tax of $27 billion over the same period," he said.
"Decisions on allocation will be made through a reverse auction starting with the lowest priced abatement. More importantly, the funds will only be allocated when there is a direct reduction in emissions. In short it is a contract for delivery."
Hunt said if elected, the Coalition will abolish the Climate Commission, The Climate Change Authority, the Clean Energy Finance Corporation and the Energy Security Fund and bring the relevant functions inhouse, under a merged Climate Change and Environment Department.
He said the Emissions Reduction Fund will operate using existing architecture originally created or proposed by the Coalition.
"That is, we will simply adapt three existing programs and mechanisms," Hunt said.
"First, the Carbon Farming Initiative, will be expanded to include a wider range of emissions reduction methodologies. Second, the Clean Energy Regulator, will be responsible for approving methodologies. It will ensure the emissions reduction being claimed is genuine and verifiable.
"Third, we will continue to use the existing National Greenhouse and Energy Reporting Scheme (NGERS) - which was created by the former Coalition Government - as the key reporting system for Australia's emissions."
Hunt said the tax can be repealed quickly and a whitepaper process will begin immediately after the election.
"We will call for submissions within 30 days of being elected, consult between 60 and 100 days, releasing the whitepaper and draft legislation by day 100," he said.
"Following further feedback the final legislation will be released on day 150 and the new system should commence on July 1, 2014."
More detailed coverage of Hunt's presentation is included in a special CCN Live Feature that appears in the October edition of Climate Control News magazine.
