According to RepuTex’s Carbon Update, the succession of Kevin Rudd as leader of the Australian Labor Party is likely to lead to speculation that the fixed price period under the Australian Carbon Price Mechanism (CPM) may be forgone in favour of an early transition to market driven carbon price. Mr. Rudd’s victory, combined with a ministerial change in the climate portfolio, will have immediate implications for the future of the Australian carbon price, with the appointment of a fresh face in the climate portfolio to be viewed by the market as a precursor to likely a policy change. Should change occur, a faster transition to a market driven price would be the likely policy shift, resulting in lower carbon price expectations in the Australian market, lower corporate liabilities and lower costs paid by the electorate.
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