Australian Greens negotiate a generous renewable energy fund

It is understood the Greens have negotiated a fund to invest in renewable energy which will be paid for from the proceeds of pricing carbon and worth up to $2 billion a year.

Greens secure billions for renewable energy as price of tax exemption for drivers,  Sydney Morning Herald, Phillip Coorey, July 4, 2011, 

A MULTIBILLION-DOLLAR fund for renewable energy and a review of the fuel tax regime are key concessions won by the Greens from the government in exchange for agreeing to exempt petrol from the carbon price.

With the full pollution price package to be announced within days, the Prime Minister, Julia Gillard, promised yesterday that petrol would be exempt forever. ”The design of this scheme is that petrol pricing will be out now and out for the future,” she said.

The decision dispels Tony Abbott’s repeated claim that the average motorist would face price rises of 6¢ a litre.

But the exemption will apply only to cars and light vehicles used by motorists, tradespeople and small businesses and not to heavy commercial vehicles such as trucks…….

When the Greens began negotiations with the government and rural independents they insisted petrol be subject to the carbon price but met strong resistance from Tony Windsor and Rob Oakeshott. Mr Windsor said he would not support a scheme that increased petrol costs for country people. Yesterday the Greens leader, Bob Brown, said he was disappointed at the exemption and vowed to keep advocating for taxes on fossil fuels.

It is understood the Greens have negotiated a fund to invest in renewable energy which will be paid for from the proceeds of pricing carbon and worth up to $2 billion a year.

The Greens spokeswoman on climate change, Christine Milne, also won a commitment that the Productivity Commission would review the entire fuel excise regime.

While petrol would remain exempt, Senator Milne said the Greens’ long-term aim was to overhaul the tax regime so the more polluting fuels attracted a higher excise. She envisaged renewable energy used to power electric cars as the lowest taxed transport fuel. ….. http://www.smh.com.au/environment/climate-change/greens-secure-billions-for-renewable-energy-as-price-of-tax-exemption-for-drivers-20110703-1gxg1.html#ixzz1R7sbaG00

July 4, 2011 - Posted by Christina Macpherson | AUSTRALIA - NATIONAL, politics