Significant changes to Australia's pollution price announced today, following extensive negotiations between the government, the Greens and the European Commission, will deliver a big step forward for genuine action to cut pollution both in Australia and globally.

"This is a red letter day in building global cooperation to tackle global warming, but it is also a hugely important step in building a clean energy economy in Australia and making our pollution pricing scheme as effective, credible and long-term as possible," Australian Greens Leader, Senator Christine Milne, said.

"Just when the world is seeing ever clearer signs of global warming in wildfires and drought in America, record Arctic sea ice melt and heatwaves in Europe, linking the Australian and EU pollution pricing schemes creates critical global momentum for this most sensible approach to cutting pollution.

"This should put to bed the nonsense idea that Australia is acting alone on global warming - we are now a key part of the world's biggest carbon pricing scheme."

The changes, allowing immediate linkage with the EU scheme, will replace the three year floor price with on ongoing 12.5% limit on the use of the cheapest imported permits. This will lift the Australian price to the EU price, give investors certainty of a robust price well beyond 2018 when the floor price was scheduled to end, encourage more serious pollution cuts in the domestic economy and ensure maximum credibility for all pollution cuts credited in the Australian scheme.

"The floor price was always meant to drive more investment in renewable energy, energy efficiency and carbon farming here in Australia, giving investors more certainty on price into the future. What we have now negotiated will deliver that more effectively, particularly for the period after 2018 when the price floor was scheduled to end.

"The Greens have also always highlighted the risks of accepting large numbers of the cheapest international permits and we are very pleased that this arrangement limits those permits to 12.5%.

"European governments are currently working hard on plans to limit the supply of permits, lift their price and cut more pollution. It is widely expected that the European permit price will be close to or above the level our floor price would have been by 2015, when trading begins in Australia.

"What we have negotiated with the government will put a permanent tight limit on the use of the cheapest credits from the global market in our scheme, increasing its credibility, buttressing the price and encouraging polluters to deliver more of their pollution cuts with genuine action at home.

"In addition, by allowing Australian companies to immediately start buying and banking permits from Europe, these changes will make it even less likely any future government will want to undermine the global market by getting rid of Australia's pollution pricing scheme.

"This sensible, forward-thinking economic reform shows up once again the economic ignorance, political opportunism and short-termism of Tony Abbott and the damage he would inflict on the Australian economy and community if he ever became Prime Minister."

The way I look at it is it had to start somewhere with someone. If no one made a move the earth could have been in bigger trouble in the future than it already is.

Who knows? better to at least try something rather than leave it to chance and keep polluting at the same rate.

It probably won't effect the top money earners at all, but the rest of us are certainly watching our power consumption now. It's a good thing.

On the other hand, I am concerned about the rising cost of power causing change in habits. I have noticed a lot of backyard burning recently. I have started the old backyard fire up again myself.

Every action has a reaction.

Remember the days when we burnt everything.? We didn't make a trip to the tip to dump broken household furniture or garden waste, we burnt it right in the backyard.

I'm doing that again because there is nothing much nicer than relaxing beside a fire, and because the council, in all their wisdom decided they should charge us to dump there. That most certainly should be included in our rates, but in their wisdom they decide it's a money spinner. Now we see rising rubbish tips on every bit of vacant land. Don't you love smart councils?

Who's going to pay to dump rubbish when most of it can be burnt off?

Anyway, carbon tax....ok with me because I want a clean earth.

the trouble is everyone with an ounce of sense. know a bloody rip off tax will not change GW..

but anyway you guys b elieve it all

btw girls... car manufacturing has bit the bullet..

it will no longer be viable even when the govt is pumping millions into it..

so there goes another industry

boy another feather in the cap of the greens..


again Wong thinks tourism will keep us afloat in the future....thats what she said on lateline.

who needs industry!! well done greens.