A new Climate Change Authority (CCA) is to be established to provide expert advice on the Federal Government’s carbon pricing mechanism. It will be chaired by the former Reserve Bank Governor and former Treasury Secretary Bernie Fraser.

 

The CCA is to be established by legislation as an independent body to provide expert advice on key aspects of the Federal Government’s carbon pricing mechanism.

 

Mr Fraser is currently Chairman of Members Equity Bank. Until recently, he was a director of two of Australia's largest superannuation funds, AustralianSuper and Cbus, positions he held for 15 years.

 

When the carbon pricing mechanism moves to a flexible price emissions trading scheme, the Government will put annual caps on the amount of carbon pollution that can be released into the atmosphere by entities covered by the carbon price.

 

One of the CCA’s responsibilities will be to make recommendations to the Government on future pollution caps under the carbon pricing mechanism. These recommendations will have regard to, among other matters:

  • the Government's announced medium and long-term carbon pollution targets;
  • progress towards emissions reductions;
  • the impact of its recommendations on the Australian economy, including on specific industries.

The Government will make final decisions on these pollution caps, based on the recommendations of the CCA.

 

The CCA will also provide advice on the performance of the carbon price and other climate change initiatives and will track progress towards Australia's pollution reduction targets.

 

It will conduct regular public reviews and its reports will be made public.

 

The CCA will complete its first review – which will provide recommendations on the carbon pricing mechanism's first five years of pollution caps – by February 2014.