The discussion paper is about strengthening the existing safeguard mechanism. The reductions are related to emissions not specifically power. Companies can invest in emissions reduction or buy credits from other companies that have exceeded their reductions. Currently they are trading around $35 a tonne. The Government also are offering to sell credits that they themselves hold at a capped price linked to inflation of $75 so that companies know the maximum they would be up for should they go down the path of not investing in emissions reductions and carbon credits increase in value from where they are today. Legislation has yet to go through Parliament.
