Treasury released its modelling on the effects of the planned Carbon Pollution Reduction Scheme. While there are some industries that will be adversely affected, the modelling shows that the Australian economy will continue to grow and that costs to households will be little more than $7/week.

The Global Carbon Project has just released its Carbon Budget 2007 showing that anthropogenic CO2 emissions have been growing about four times faster since 2000 than during the previous decade, and despite efforts to curb emissions in a number of countries which are signatories of the Kyoto Protocol. Emissions from the combustion of fossil fuel and land use change reached the mark of 10 billion tones of carbon in 2007. Natural CO2 sinks are growing, but more slowly than atmospheric CO2, which has been growing at 2 ppm per year since 2000. This is 33% faster than during the previous 20 years. All of these changes characterize a carbon cycle that is generating stronger climate forcing and sooner than expected.

Prime Minister Kevin Rudd has announced a $100 million Global Institute to speed up the development of carbon capture and storage technology. Through this Institute, the Rudd Government will work with other countries to help reduce the amount of C02 released into the atmosphere. The Government is offering to host the Institute in Australia and would continue to contribute up to $100 million per annum towards its operation. The Institute will aim to accelerate carbon projects through facilitating demonstration projects and identifying and supporting necessary research such as regulatory settings and frameworks. The government has already held informal consultations with industry and foreign governments over a possible model for the Institute.

Professor Ross Garnaut has released his supplementary draft report on interim targets and trajectories for Australia's emissions trading scheme. The review recommends a target of 550 ppm CO2 by 2050, as a more ambitious target such as 450 or 400 ppm, needs to wait for more widespread engagement by both developed and developing countries. Under the 550 ppm target, Australia should target a 10% reduction of emissions in 2020 from 2000 levels, moving to an 80% reduction by 2050. The price of permits would be about $23 in 2013 rising at an annual rate of 4% above CPI.

WorleyParsons, a major energy engineering company, has announced plans for building a 250 MW solar thermal power plant in Australia. The location for the plant has not yet been decided. Using molten salt to store excess thermal energy, the plant would be able to provide power well after the sun has gone down. If successful, the company says an additional 33 plants could be built by 2020.