ATTACHMENT C

Special Review by the Climate Change Authority - Terms of Reference

By this written instrument I, Greg Hunt, Minister for the Environment, request that the Climate Change Authority (the Authority) conduct a review under section 59 of the Climate Change Authority Act 2011, as below:

• Assess whether Australia should have an emissions trading scheme in the future and what conditions should trigger the introduction of such a scheme.
• This review must consider:

• Whether the US, China, Japan, South Korea and the EU have established emissions trading schemes or equivalent schemes that would have similar effect;
• Australia’s international commitments and undertakings under the United Nation’s Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol to which Australia is a party;
• Whether Australia should introduce an emissions trading scheme that does not harm Australian businesses international competitiveness; and
• What future emissions reduction targets Australia should commit to as part of an effective and equitable global effort to achieve the objective of the UNFCCC (Article 2) and subsequent agreements to which Australia is a party.

Timing

• The Authority should issue a draft report on what future emissions reduction targets Australia should agree to for public consultation by June 2015
• The Authority should issue a draft report on an emissions trading scheme to for public consultation by 30 November 2015
• The Authority should issue an final report by June 2016 (after Paris Conference) recommending what action Australia should take to implement outcomes flowing from the conference.