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CLEAN ENERGY ACT 2011 (NO. 131, 2011) - SECT 156 Matters to which the Productivity Commission must have regard

CLEAN ENERGY ACT 2011 (NO. 131, 2011) - SECT 156

Matters to which the Productivity Commission must have regard

Scope

             (1)  This section applies to an inquiry mentioned in section 155.

Matters

             (2)  In holding the inquiry, and preparing its report on the inquiry, the Productivity Commission must have regard to the following matters:

                     (a)  whether assistance under the Jobs and Competitiveness Program is still warranted having regard to the matters in paragraphs 143(2)(e) and (f);

                     (b)  the progress made by persons carrying on emissions-intensive trade-exposed activities towards achieving best practice for energy and emissions efficiency in relation to the industrial sector to which those activities relate;

                     (c)  whether there are additional activities that should be identified as emissions-intensive trade-exposed activities for the purposes of the Jobs and Competitiveness Program;

                     (d)  the extent to which foreign countries have implemented emissions reduction measures that have an impact that is comparable to the impact of Australian emissions reduction measures (including the impact of associated assistance);

                     (e)  whether it is:

                              (i)  feasible; and

                             (ii)  consistent with the aim and objects of this Part;

                            to change the method of issuing free carbon units in accordance with the Jobs and Competitiveness Program to a method based on an assessment of the anticipated increase in international prices of individual emissions-intensive trade-exposed industry products that would result from foreign countries implementing emissions reduction measures that have an impact that is comparable to the impact of Australian emissions reduction measures (including the impact of associated assistance);

                      (f)  whether windfall gains are being conferred on persons carrying out emissions-intensive trade-exposed activities as a result of the Jobs and Competitiveness Program;

                     (g)  to the extent to which there is no cap on free carbon units issued in accordance with the Jobs and Competitiveness Program for particular facilities, the effect of those facilities not being subject to such a cap;

                     (h)  the growth in the emissions-intensive trade-exposed sector, and implications of that growth for the number of free carbon units issued within the limits of the carbon pollution cap;

                      (i)  the appropriateness of any supplementary allocations of free carbon units issued in accordance with the Jobs and Competitiveness Program in respect of liquefied natural gas production;

                      (j)  the impact of this Act and the associated provisions on the competitiveness of emissions-intensive trade-exposed industries;

                     (k)  whether the assistance under the Jobs and Competitiveness Program for a specific industry should be changed;

                      (l)  whether the Jobs and Competitiveness Program is supporting Australia's medium-term and long-term emissions reduction objectives;

                    (m)  the extent to which the Jobs and Competitiveness Program gives effect to:

                              (i)  the aim and objects of this Part; and

                             (ii)  the objects of this Act;

                     (n)  any other matters specified in a legislative instrument made by the Productivity Minister;

                     (o)  such other matters (if any) as the Productivity Commission considers relevant.

             (3)  In having regard to the matters in paragraphs (2)(d) and (k), the Productivity Commission must consider the following:

                     (a)  whether less than 70% of the relevant competitors of each emissions-intensive trade-exposed industry are located in foreign countries where the impact on those competitors of emissions reduction measures (including the impact of associated assistance) is comparable to the impact on the industry of Australian emissions reduction measures (including the impact of associated assistance);

                     (b)  whether, having regard to the matter in paragraph (a), the application of the rate of assistance for a specific industry should pause when assistance rates reach:

                              (i)  90% for highly emissions-intensive industries; and

                             (ii)  60% for moderately emissions-intensive industries.

             (4)  In having regard to the matter in paragraph (2)(e), the Productivity Commission must consider whether the relevant method is the most effective and efficient means of achieving the aim and objects of this Part.

             (5)  In having regard to the matters in paragraphs (2)(f) and (j), the Productivity Commission must consider the following:

                     (a)  an analysis of the carbon cost passed on (to and by emissions-intensive trade-exposed industries);

                     (b)  the reduction in emissions of greenhouse gases resulting from emissions-intensive trade-exposed activities;

                     (c)  the effect of a declining rate of assistance under the Jobs and Competitiveness Program on emissions-intensive trade-exposed activities.

             (6)  Subsection (2) of this section has effect in addition to section 8 of the Productivity Commission Act 1998 .

             (7)  In conducting the inquiry, the Productivity Commission must consult the Climate Change Authority about the following matters:

                     (a)  the matter mentioned in paragraph (2)(l);

                     (b)  the matter mentioned in paragraph (2)(m).