Business will have to live with carbon price

by Tony Wood

Companies will start paying a carbon price on July 1. New calls by electricity generators to have their burden reduced are highly unlikely to be met. In fact, the next change the Government is likely to make is to tighten emission requirements. The reason is that business capacity to reduce emissions is likely to be greater than expected, which will lower the carbon price and the Government’s revenue. Those calling for reduced carbon price burdens are, therefore, unlikely to be heard.