Results from an independent study by CSIRO and AECOM Reality Check: An assessment of how the carbon...

Results from an independent study by CSIRO and AECOM

Reality Check:An assessment of how the carbon price will affect the cost of living

About this project

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+ Partners: CHOICE – ACOSS – The Climate institute

+ Researchers: CSIRO and AECOM

+ Outputs: + Detailed report with results and methodology+ Summary material and fact sheets+ Your Carbon Price online tool

About the carbon price

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+ Who pays?+ Around 500

companies

+ Doesn’t come out of your pay packet and unlike the GST it won’t show on shopping dockets

Electricity genera-tors48%

Coal mining11%

Oil and gas ex-traction

8%

Non-ferrous metal (e.g. Aluminium)

6%

Petroleum and coal product

6%

Chemicals2%

Cement, lime etc2%

Waste2%

Iron and steel2% Gas

2%Other11%

About the carbon price

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+ What’s the purpose?

+ Provides a financial incentive to cut carbon emissions

+ Will make cleaner energy sources and low carbon emissions ways of doing business cheaper by comparison

About the carbon price

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+ How much carbon pollution will be saved?

+ Between 0.68 and 1.1 billion tonnes over the period 2012 to 2020

0

200

400

600

800

1000

1200

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212

130 628

Without carbon pricing With carbon pricing

Domestic abatementInternationally-sourced

abatement

Abatement 2020 2050 248 840

Mt CO2-e

About the carbon price

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+ Where does the money go: + Households: tax

cuts and benefit payments

+ Businesses: free permits and technology funding

+ Clean energy and energy efficiency

Impact on inflation

2012 /2013

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What does it mean for households?

On average $9.10 per week – 80 cents less than estimated by Treasury

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$2.80 wk

$0.40 wk

$1.20 wk

$4.20 wk (clothes, recreation, etc)

$0.00 wk (There will be no price impact on household fuel costs)

Past inflation spikes

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+ Smaller than past inflation spikes+ Less than half the

impact of the mining boom (1.6%)

+ Smaller than Cyclone Larry (0.8%)

+ 4 times smaller than the GST (2.5%)

What’s really driving up power bills?

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And food bills?

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Assistance

+ Low income: generally better off

+ Middle income: at least 60% of costs to be covered, on average; better off in many cases.

+ High income: generally limited assistance

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Assistance

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Smart Consumer

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Tip 1 Tip 2 Tip 3

Washing clothes in cold water – Save up to $2.25 per week

Install water saving shower head - Save up to $5.20 per week

Reduce standby power consumption – Save up to $1.75 per week

Save money by investing in simple, low cost energy efficiency measures.

What does it achieve?

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The carbon price will be paid by around 500 of Australia’s biggest polluting companies, not households.

It has the potential to cut up to 1.1 billion tonnes of pollution from the atmosphere by 2020.

This is equivalent to taking 70 million cars permanently off the road

Driving investment in cleaner energy sources.

Online tool

+ Where: yourcarbonprice.com.au + Facebook.

+ What:+ Interactive+ Estimate of costs and assistance+ Energy efficiency opportunities

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yourcarbonprice.com.au

+ Low income: generally better off

+ Middle income: at least 60% of costs to be covered, on average; better off in many cases.

+ High income: generally limited assistance

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Tool Kit

+ Fact sheets

+ Flyers

+ Material for newsletters and journals+ Articles, oped pieces & online banner ads etc

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