The Australian Greens are proposing to introduce a $20 per tonne fixed carbon price for two years as an interim solution to break the political deadlock over an emissions trading scheme.
The move, which is based on suggestions from climate change expert Professor Ross Garnaut, is proposed as a measure of transition in the lead up to what the Greens hope will be a functional and effective emissions trading scheme.
The carbon price would provide a $5 billion dividend that would be used to invest in renewable energy, energy efficiency and other emissions reducing options.
It would also prevent the use of international offsets that would have been possible under the Carbon Pollution Reduction Scheme (CPRS), as international trading is not possible in the interim fixed price.
It is proposed that the scheme will start in July 2010.
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Deputy Prime Minister Julia Gillard indicated late last year that the Government planned to re-introduce the CPRS when Parliament resumes in February.
