The number of carbon pollution permits issued by the government in each year will be limited to the total carbon cap desired for Australia and will be decreased from year to year. This cap and trade system will essentially place a price on carbon as the business entities trade the permits amongst themselves and will lead to an increase in the cost of emissions intensive goods and services as compared with low emissions goods ...
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Government will also give support to business to help them with the transitional and adjustment costs to a low carbon economy. That is why the government is going to provide free permits to the most emissions intensive trade exposed activities, some direct assistance to coal-fired electricity generators, and the creation of two specific industry adjustment funds the, Climate Action Fund and the Electricity Sector Adjustment Scheme...
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