Carbon pricing: Labor faces a choice on making polluters pay

The article reports the IEA found coal-fired generation fell in China and India, and says debate in Australia has reopened over carbon pricing as a safeguard review is due later this year.

Recent international energy data and rising renewables have reopened policy questions in Australia about whether to revisit carbon pricing. The IEA reported falls in coal-fired generation in China and India alongside large increases in solar and wind output. Global emissions remain high, and climate agencies say much larger cuts are needed to meet the Paris goals. In Australia, grid emissions have fallen as solar has grown, but coal and gas industries continue to contribute to national emissions and to export markets. Key points: - The International Energy Agency found coal-fired power generation decreased in both China and India last year, while Chinese solar generation rose by over 40% and wind by about 12%, together providing a larger share of electricity than a year earlier. - Global emissions remain stubbornly high; the Global Carbon Project reported fossil fuel pollution rose about 1.1% last year, and the IPCC has said cuts of roughly 43% between 2019 and 2030 are needed to stay aligned with a 1.5°C pathway. - In Australia, growth in rooftop and large-scale solar has begun to lower electricity-sector emissions, but coal and gas export industries remain substantial contributors to national emissions and the country is currently off track for its 2035 target. - Danielle Wood, head of the Productivity Commission, said a carbon tax or emissions trading scheme looked "pretty damn attractive" compared with the current patchwork of policies introduced since 2014. - The Superpower Institute has proposed a "polluter pays levy" on fossil fuel extractors and a higher "fair share levy" on gas profits; some experts describe the idea as effective on paper but doubt its political viability. - A review of the safeguard mechanism is due to begin later this year and will centre on whether legal and financial requirements for major industrial sites should be tightened to reduce emissions. Summary: International shifts in power generation and persistent high emissions have brought carbon pricing back into the Australian policy conversation. The Productivity Commission and several experts have argued the policy merits renewed attention, while political concerns about public reaction persist. The upcoming review of the safeguard mechanism will be a main avenue for decisions on increasing regulatory and financial pressure on major polluters. The timing and outcome of that review are central to how Australia might change its approach this year.