NETT releases Auction design report. August 2007 (PDF 1 mb)
This report sets out the results of a detailed consultancy on auction design.

NETT to report on broader coverage
Change to NETT Terms of Reference. July 2007

Prime Minister's Task Group  report released
The Prime Minister's Task Force on emissions trading released its report 1 June 2007

Emissions Reporting to commence 1 July 2008
The Council for the Australian Federation agreed at its 12 April 2007 meeting that national greenhouse emissions reporting would commence by 1 July 2008, either through purpose-built legislation or through the National Pollutant Inventory.

Emissions trading to commence by the end of 2010 (PDF 103 kb)

Release of Discussion Paper - August 2006

The stakeholder input and modelling informed the development of the Discussion Paper: Possible Design for a National Greenhouse Gas Emissions Trading Scheme. The diagram below is an illustration of the design process for the NETS culminating with the release of the Discussion Paper in August 2006. This is an important time for stakeholders to provide input and be part of the consultation process.

The Stakeholder Consultations page outlines how stakeholders can respond to the issues identified in the Discussion Paper and participate in the process in the future.

Any decision on whether to progress further development of the NETS will be made by State and Territory Governments following feedback from stakeholders on the Discussion Paper.

Diagram of the Design Process for the NETS

Stakeholder Consultations - September 2005

In September 2005 the Taskforce released a paper, The Background Paper for Stakeholder Consultation into Emissions Trading, seeking stakeholder views on the 10 design propositions. In total, 70 submissions were received.

The Background Paper provided a basis for stakeholder forums that were held in Perth, Adelaide, Melbourne, Sydney and Canberra during the period October 2005 to February 2006.

Industry and Environment Stakeholder Roundtables canvassed key issues and options for the design of a national emissions trading scheme. Meetings were held with the Stakeholder Roundtable Groups during April 2006. The Taskforce also engaged consultants to estimate the likely impacts of a NETS on the electricity sector and the broader economy.

Joint Communique - March 2005

In March 2005 First Ministers released a joint communiqué outlining work to date and issues for further consideration.

10 Key Design Propositions - December 2004

The Taskforce reported progress to First Ministers in December 2004, including the development of the following 10 key design propositions as a basis for further investigation and analysis of a NETS:
1. A cap and trade approach should be used as the basis for scheme design.
2. The scheme should be national and sector based.
3. In setting the cap, consideration should be given to the overall national emissions abatement target, and how abatement responsibility is allocated between sectors covered by the scheme and those outside the scheme.
4. The scheme should initially cover the stationary energy sector (including electricity, gas and coal).
5. The scheme should cover all six greenhouse gases under the Kyoto Protocol.
6. Permit allocation should be made on the basis of a mix of administratively allocated and auctioned permits, with both long- and short-term (annual) permits.
7. A penalty should be set to encourage compliance and to establish a price ceiling for the permit market.
8. Offsets should be allowed.
9. Mechanisms should be included to address any adverse effects and structural adjustments.
10. Mechanisms should be included to allow a transition for participants who have taken early abatement action and new entrants.

Terms of Reference - January 2004

In January 2004, First Ministers of State and Territory Governments established a working group of senior officials (subsequently named the National Emissions Trading Taskforce) to develop a model for a national emissions trading scheme (NETS). The terms of reference for the group provided key objectives and broad steps for the development of an agreed model for such a scheme.