Frontier Economics’ alternative Emissions Trading Scheme (ETS) will benefit small businesses more so than the Government’s proposed scheme says Shadow Small Business Minister Steven Ciobo.
According to Ciobo, Frontier’s plan will see small businesses paying 80 to 90 percent less for their electricity bills over the next 20 years.
“Frontier’s smarter, more graduated emissions trading model has showed power bills for small businesses would rise just $8 in the first year of the scheme, rising to only $44 over five years – compared with the $280 forecast in the first year of the ETS proposed by the Rudd Labor Government.”
The concept behind the Frontier Economics report is that the incentive to reduce power emissions can be maintained without higher electricity prices. This would work by allocating free permits to generators up to a given emissions-intensity target.
However, the Rudd Government has rejected the plan, putting small businesses at risk says Ciobo.
“How can Mr Rudd ignore a model which would give small businesses more time and improved cash flow to reduce their electricity use and make their business cleaner and greener?”
Ciobo is urging the Government to consider an alternate approach to emissions trading in order to help small businesses.
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