The Impact of the Shadow Carbon Price - The Centre for Independent Studies
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The Impact of the Shadow Carbon Price

The federal, state and territory Energy Ministers have introduced a shadow carbon price for the national electricity market. This ‘value of emissions reduction’ (VER) sets the value of carbon abatement at $66 per tonne in 2023, rising six-fold to $420 by 2050. Costs will be passed onto consumers through electricity network projects because the regulatory investment framework will now include the interim VER as a benefit in their cost benefit analyses. This change is likely to increase the assessed benefits of projects that claim to reduce emissions, projects which might otherwise have been deemed uneconomic.

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