Dropping Carbon Tax Leads to More Emissions

July 6, 2015 Taxation in Australia

CANBERRA – The power generation sector in Australia has been releasing tonnes more pollutants into the air since the government dropped a tax on such emissions.

In a statement issued over the weekend the Australian-based non-profit group the Climate Council claimed that there has been a marked rise in the amount of emissions produced by the electricity sector since the recent scrapping of the national carbon tax.

Over the year ending in April 2015 the level of carbon emissions from electricity producers in Australia was 4.3 percent higher than the level seen over the course of the year ending in June 2014.

The rise was attributed to the fact that in July 2014 the national tax on carbon emissions was repealed.

It was noted that during the two years that the tax was active, the level of emissions from electricity generation dropped by 11 percent, however, the current increase has make a significant dent in this progress.

According to the consultancy firm which conducted the research into emissions levels, Pitt & Sherry, a significant portion of the increase in emissions can be attributed to a rise in the demand for electricity and the increasing use of brown-coal power generators throughout Australia.

Photo By: Dawn Ellner