Carbon Pollution Reduction Scheme (CPRS)

The Green Paper for the Carbon Pollution Reduction Scheme (CPRS) was released July 2008.  

• Reduce Australia’s greenhouse gas emissions
• Adapt to the climate change we cannot avoid
• Help shape a global solution that both protects the planet and advances Australia’s long term interest.
• Includes a proposal to introduce a CPRS in 2010

Following the establishment of the National Emissions Trading Taskforce (NETT) and the Garnaut Review, the Government announced the CPRS legislation in 2009. The CPRS is the Government’s cap and trade scheme to set a price on carbon and trade it in order to meet the nation’s emissions reductions targets.

How does the CPRS work?

The CPRS works by the Australian Government setting a limit (or cap) on the total amount of carbon emissions that can be produced each year.

This cap is gradually lowered each year to reduce the total amount of carbon pollution. 

Permits are issued to business and other companies for a set amount of carbon pollution not to exceed the government set limit. Businesses can trade these permits as they need more, or less which helps ensure that pollution abatement is done at the lowest cost.

So far, indigenous engagement in carbon markets is predominately in the context of forestry and fire management.

The CPRS legislation was introduced to the Senate Standing Committee on Economics on 11 March 2009

After failing to pass the vote in the Senate, on 27 April 2010, Prime Minister Rudd announced that the government would postpone introduction of an Emissions Trading Scheme until a later date.

Related Links

Progress of the CPRS

Senate Standing Committee on Economics on 11 March 2009