King & Wood Mallesons

Asia-Pacific 100 position: 2


How long will Australia's carbon scheme last?

With the conservative Coalition parties sweeping to office on a platform of reducing spending and repealing the carbon scheme, this alert examines whether (and when) the new government can repeal the Clean Energy Act.

While the Australian election on 7 September produced a clear enough winner, it leaves significant uncertainty over the fate of Australia’s carbon scheme. The scheme, which is established under the Clean Energy Act, imposes a charge on most carbon emissions in Australia (notably excluding agricultural and road transport).

The conservative Coalition parties, whose campaign relied heavily on perceived voter dissatisfaction with the carbon scheme, won a comfortable majority in the lower house of Parliament, allowing them to form the next government. However, the new government does not hold a majority in the upper house (senate), significantly complicating its plans to repeal the carbon scheme…

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