KEY POINTS:
How the Emissions Trading Scheme Works:
The Climate Change (Emissions Trade and Renewable Preference) Bill sets up a trading scheme which will eventually affect all sectors of the economy, including agriculture.
* The system will make greenhouse gas emitters pay for their emissions through the trading of carbon credits.
* The scheme is to be phased in by sectors. The stationary energy sector - electricity generators and large industrial plants - has obligations from January 2010.
* Large trade- exposed companies, especially in the aluminium, steel, cement and glass industries, will get a free allocation of most of the units they need, but still face a carbon price at the margin.
