Despite ongoing public debate about the future of the carbon tax, Australia’s large emitters, carbon financiers and carbon market experts believe a tax is inevitable.
Research by The Australian National University found 79% of those surveyed thought there would be a carbon price in 2020, though 38% believed the current model would be repealed by 2015.
The average predicted carbon price varied over time, starting at $23 per tonne for the first three years and falling to $11 per tonne for 2016, before rising again to $22 per tonne in 2025. Most respondents expected a price floor would be in place.
The study also found large emitters had taken actions to accommodate the tax, despite uncertainty over its future.