The independent MP Rob Oakeshott, whose vote is crucial to passing a carbon price, says he will push for tax measures to boost storing carbon in the landscape and for renewable energy as part of intensifying negotiations on a carbon price.
Mr. Oakeshott, a long-time supporter of emissions trading, said there were creative ways to use both personal and commercial taxation to provide incentives for climate change abatement alongside a carbon price.
He pointed to the now expired investment allowance, which offered a tax write-off on equipment for small business, as one option to drive investment in clean technology.
But he was pragmatic about what he could get out of the negotiations on carbon pricing.
”If I get one of those up I will be happy,” he said.
Mr. Oakeshott is a member of a multi-party committee of Labor, Greens and independent MPs negotiating a deal on carbon pricing. The committee held informal talks this week and will meet again at the weekend.
At the meeting the committee is expected to be briefed on new Treasury modeling on the economic impact of a carbon price, the final results of Professor Ross Garnaut’s updated review on climate change and a Productivity Commission report on international action.
The Greens and the independent MP Tony Windsor have made similar pitches for additional measures on climate change as part of a carbon price agreement.
Mr. Windsor said earlier this month he wanted some of the revenue raised by a carbon price to be committed to storing carbon in farming soils and research and development in emerging renewable energy technologies such as biomass.
The Greens want measures to boost baseload renewable energy projects such as loan guarantees as part of the negotiations on the carbon tax.
The government is expected to announce energy efficiency measures as part of any carbon price deal in a long awaited response to a report produced by a high-level panel of officials on policy options to reduce energy use.
