MARKET UPDATE: Momentum for ‘new deal’ on Direct Action

Following the release of Senator Xenophon’s proposed changes to the CFI Amendment Bill, the Palmer Untied Party (PUP) continues to progress in its own negotiations with the Coalition, with an agreement edging closer for the Emissions Reduction Fund (ERF) to be supported by the Senate prior to the end of the year.

Political progress on the Direct Action Plan has intensified due to the increasing risk of collapse for the Carbon Farming Initiative, with investment into the offset scheme to fall from over A$150m in FY15 to just $15m p.a. unless the ERF is enacted prior to the end of the parliamentary year.

In light of the risk of collapse for the local offset market, support for the Emissions Reduction Fund has grown among the crossbench, with the Palmer Untied Party considering a range of legislative options to maintain the CFI.

As the clock begins to run down on the end of the parliamentary year, in this Market Update we outline the development of a ‘New Deal’ on Direct Action between PUP and the Coalition, with potential for an agreement on the ERF and ‘hybrid’ compliance market to be fast tracked to provide support to Australia’s offset market.

Restricted Access

This is a subscriber report. Please login to access this content.

Not a subscriber?

To learn more about our research services for the Australian energy and emissions markets, click the button below, or email our subscriptions team.

Sign up for regular insights

LATEST UPDATES

  • ALERT: Australian carbon price ends 2019 higher as climate policy pressure builds

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    The Australian carbon spot price ended 2019 higher, trading between $17.20-30 in January, just under […]

    Analyst Alerts, Research Insights | January 14th, 2020
  • The impact of the early closure of Yallourn power station on the Victorian electricity system

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    RepuTex has been engaged by Environment Victoria to analyse the potential impact of the early […]

    Research Insights | December 16th, 2019
  • ALERT: Australian carbon offset price hits 4-year high, more price increases ahead?

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    The price of Australian Carbon Credit Units (ACCUs) has continued its recent climb, reaching a […]

    Analyst Alerts, Research Insights | November 18th, 2019
  • INSIGHTS: How do weather patterns impact wind REZ correlations?

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    As the Australian renewable energy market reaches a turning point in its development cycle, the […]

    Research Insights | November 6th, 2019
  • OUTLOOK: Carbon windfall gains …or losses? Long-term carbon price outlook

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    The price of Australian Carbon Credit Units (ACCUs) has rebounded to a 5-month high of […]

    Research Insights | October 31st, 2019
  • Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone
  • Quick Navigation

  • Electricity

    Learn more about our modelling and price outlooks for the NEM
  • Renewable Energy

    Learn more about our services for wind and solar developers
  • Carbon Market

    Learn more about our Australian carbon price and market analysis
  • Latest Insights

    View our latest articles, white papers, reports and publications