Commencement Of Australia’s Carbon Pricing Scheme

The long debate surrounding carbon pricing in Australia entered a new phase on Sunday, 1 July with the commencement of Australia’s carbon pricing scheme at a $23/tonne CO2-e starting price. Based on the first day of volume-weighted average pool prices across New South Wales, Queensland and Victoria, the introduction of a carbon price has lead to a roughly $23/MWh increase in pool prices. This reflects a rate of carbon price pass-through into wholesale pool prices of approximately 100%, and an average pool price increase due to carbon of 66%.DOWNLOAD FULL PUBLICATION

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