Carbon Pricing

Greenhouse gas, or carbon emissions are a significant issue for local government because of the potential impacts of climate change and the opportunities and challenges presented by Australia’s efforts to reduce carbon emissions. Although the Northern Territory emissions are relatively low compared with other states, our per capita carbon emissions are much higher.

There are a number of options for councils wishing to reduce greenhouse gas emissions. The Cities for Climate Protection® program is the largest local government greenhouse program in the world. It assists councils to reduce greenhouse gas emissions within their own operations and those of their community. The Working energy kit developed by the Australian Greenhouse Office is another resource to assist local government.

The Australian Government is introducing legislation for trading in carbon emissions, which will restrict emissions in Australia. This is the Carbon Pollution Reduction Scheme or the “CPRS”. This uses a ‘Cap & trade’ mechanism to limit greenhouse gas emissions. Emitters of GHG acquire a permit for every tonne of GHG that they emit. The quantity of emissions produced by organisations will be monitored, reported & audited. At the end of each year, each liable entity will need to surrender a permit for every tonne of emissions that they produced in that year.

The CPRS will cover around 75% of Australia’s emissions, with mandatory reporting obligations for around 1,000 entities – including business, industry and government. Many sectors are covered by the CPRS, including stationary energy, transport, fugitive, industrial processes, waste and forestry.

For local government, the key impacts of the CPRS will be in managing waste, and knock on effects of increases in other sectors – such as transport and energy.

LGANT is working with other state Local Government Associations and ALGA to keep up to date with the impacts and opportunities for councils in the NT and the CPRS.

Check back often for updates.