Transition into the Carbon Pollution Reduction Scheme

In the ClimateSmart 2050 strategy (released on 3 June 2007), the Queensland Government announced its intention to transition the Queensland Gas Scheme into a national emissions trading scheme as soon as practicable.

Following the release of the Federal Government's Green Paper on the Carbon Pollution Reduction Scheme (CPRS) (released on 16 July 2008), the Queensland Government announced it would look to transition the gas scheme once it was satisfied that the objectives of the gas scheme were efficiently serviced through the CPRS.

It is likely that when the benefits of the CPRS are broadly equivalent to that of the gas scheme, the CPRS will be the main mechanism driving new investment in gas fired generation in Queensland. At this time, the Queensland Government will consider transitioning out of the gas scheme to the CPRS.

The Federal Government's White Paper on the CPRS (released on 15 December 2008), indicated that the gas scheme may be inconsistent with the complementary measures principles currently being considered by the Council of Australian Governments and should be terminated at the earliest opportunity.  The Federal Government has offered to work with the Queensland Government to develop appropriate transition arrangements.

Now that emission targets for the CPRS have been set, the Queensland Government will provide details regarding the transition arrangements as soon as possible to provide certainty to gas scheme participants as to the future of the scheme.

If you have any queries or comments on the transition of the Queensland Gas Scheme, please email queenslandgasscheme@dme.qld.gov.au