Isra-Mart srl:Swan says there is consensus on carbon price

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Isra-Mart srl news:

The Federal Government says there is consensus among business leaders for the need for a price on carbon.

Treasurer Wayne Swan and Climate Change Minister Greg Combet met business representatives this morning to help develop the Government’s new climate change policy.

Mr Swan says the business community understands a carbon price is needed for the long-term competitiveness of the economy.

“There were a variety of perspectives, but I think it is fair to say the overwhelming view in the room was the need for action and that includes a price on carbon,” he said.

The Opposition has been maintaining pressure on the Government over the rising cost of living, including electricity prices.

It is opposed to putting a price on carbon and wants to use a range of direct-action measures to reduce pollution.

But Resources Minister Martin Ferguson says power prices are going up largely because of decisions at a state and territory level and because demand for energy is rising as the economy grows.

He says a carbon price would encourage new investment in cleaner power sources.

The Government has also tasked the Productivity Commission with investigating how other countries are implementing a carbon price.

The move came as the OECD urged Australia to introduce a carbon price soon to avoid increased uncertainty in the energy sector.

The commission will report to the Government by May.

The Government is open to the idea of using either a carbon tax or an emissions trading scheme, with the newly formed multi-party climate change committee considering all options.

The idea of having the Productivity Commission investigate how other countries are dealing with the issue was raised by independent MP Tony Windsor in the lead-up to Labor forming minority government.

Meanwhile, a trust set up by the Federal Government to help reduce carbon emissions has today signed agreements worth nearly $24 million to fund energy efficiency initiatives.

The Australian Carbon Trust signed deals with six organisations – including Australia Post, the National Australia Bank and the Melbourne City Council – to help fund energy efficiency ideas.