The NSW Government will close the Greenhouse Gas Reduction Scheme (GGAS) upon the commencement of carbon price to reduce duplication among the Federal and State schemes.
The scheme has operated since 2003.
The GGAS legislation requires the scheme to be wound down upon the implementation of a national carbon pricing mechanism.
NSW Energy Minister Chris Hartcher said that the Government would be looking to wind down any state-based emission abatement schemes that duplicate the carbon tax.
“The NSW Government is well aware of the burden that increasing power bills are placing on NSW households,” Mr Hartcher said.
“Due to the Federal Government’s desire for a national approach, we will be closing the State scheme to remove duplication and minimise costs to NSW consumers.
“The NSW Government is concerned, however, about the impact transitioning to a national scheme may have on participants of GGAS.”
There are currently around 16 million unused certificates, which are held between retailers and certificate creators.
“Companies that took early and innovative action to reduce carbon emissions – such as forestry projects and those converting sewage gas to electricity – should not be disadvantaged by the establishment of Labor’s carbon tax,” Mr Hartcher said.
The Independent Regulatory Tribunal (IPART) will administer the closure of the scheme.
