Carbon price should be set at $70 a tonne and rise six-fold by mid-century, says AEMC

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🗞️ Driving the news: The Australian Energy Markets Commission (AEMC) recommends setting a carbon price starting at $70 per tonne in 2024, escalating to $420 per tonne by 2050
• This proposal aligns with national goals for net zero emissions and follows recent amendments to national energy laws prioritizing carbon reduction.

🔭 The context: Australia previously implemented, then repealed, a carbon pricing mechanism
• The proposed pricing, though not an outright carbon tax, would influence energy market dynamics significantly, especially affecting the economics of gas-fired power plants as the nation transitions away from coal

🌍 Why it matters for the planet: Setting a structured carbon price signals a robust commitment to reducing emissions
• This strategic price trajectory supports Australia’s target for net zero emissions by 2050 and incentivizes cleaner energy production and investment.

⏭️ What's next: The AEMC’s recommendation will be integrated into the Australian Energy Market Operator’s forthcoming energy blueprint
• The interim carbon price is set until June 2025, awaiting potential updates through new regulations or instruments

💬 One quote: “As an investor in fossil fuels, I’d be starting to get quite nervous,” said Alan Pears, energy expert at RMIT University, highlighting the significant economic shifts expected from the carbon pricing model

📈 One stat: Initial carbon price set at $70 per tonne in 2024

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