A carbon price Australia might finally agree on

Australia’s electricity sector is decarbonising — but not fast enough. While the Renewable Energy Target has been doing the heavy lifting to incentivise the rollout of wind and solar, it doesn’t require fossil fuel generators to cut their emissions. For years governments have avoided putting a price on carbon, fearing it would drive up power bills. But new modelling from the Grattan Institute shows those fears are outdated — household energy costs are actually set to fall as more Australians switch from petrol and gas to electric. They argue that by extending the existing Safeguard Mechanism, which is already used to cap the emissions of large industrial polluters and the transport sector, we could accelerate the clean-energy shift without increasing household electricity bills. Alison Reeve, Program Director for Energy and Climate Change at the Grattan Institute, explains how this approach could deliver both lower bills and lower emissions.