An accompanying Policy Framework document explains how the exemptions were arrived at in absense of Commonwealth Government legislation defining EITE exemptions (such as the stalled CPRS Bills and the interim RET assistance).

The framework is based on the approaches taken in the following Commonwealth documents:

• Assessment of activities for the purposes of the emissions-intensive trade-exposed assistance program, Guidance Paper, February 2009;
• Establishing the eligibility of activities under the emissions-intensive trade-exposed assistance program, June 2009;
• The Carbon Pollution Reduction Scheme White Paper, December 2008;
• The draft Carbon Pollution Reduction Scheme Regulations, June 2009; and
• Activity Definitions from the Department of Climate Change website, as at 30 July 2009.

At this stage, no firm decisions have been made on future orders to run from January 2010.

• Financial and other assistance to households to reduce energy use;
• Assistance to business and industry to ‘pursue cost-effective energy efficiency opportunities’;
• Energy efficiency standards for residential and commercial buildings, appliances and equipment;
• New air conditoner standards to start in 2010;
• A review of regulation to ensure that it is encouraging demand side abatement and smart grid technologies; and
• Consideration of vehicle efficiency measures.

The communiqué says:

“…where retail prices are regulated, energy costs associated with the Carbon Pollution Reduction Scheme and the Renewable Energy Target shall be passed through to end-use consumers. These price increases, together with more cost-reflective retail prices, including the phase-out of retail price caps where competition is found to be effective, will help drive more efficient use of energy and assist in managing peak energy demand growth.”

The three-page ‘fact sheet’ entitled Strengthening Australia’s 2020 carbon pollution target outlines the increase in the upper-bound of the target range to 25%, subject to a global deal to target 450ppm of atmospheric CO₂ .

The Deferral of Carbon Pollution Reduction Scheme fact sheet details the scheme deferral and initial $10 carbon price for the first year. Assistance under ESAS and EITE has also been deferred. Obligations under NGERS will remain.

The Support for Industry fact sheet details the ‘Global Recession Buffer’ that adds to the EITE rate, assistance under the first year of the scheme and additional provisions for the scheme reviews.

COAG summarise the details in its four-page meeting outcomes document.

The scheme penalty will be increased from $40/MWh to $65/MWh. Assistance for EITE industries kicks in over 9,500 GWh per annum and aims to be consistent with that proposed under CPRS.

COAG also announced the signing of a memorandum of understanding on a National Strategy on Energy Efficiency. There is a commitment to sign an actual agreement in mid-2009.

Baker & McKenzie have also created the JI Rulebook to explain the Joint Implementation (JI) mechanism. ERUs created under JI are also linked to the CPRS scheme.

On the 27th February 2009, Carmel Tebbutt issued a press release announcing the targets for the scheme. Other details are available on the scheme website.

The ESS bill was introduced on 13th May.

The ESS brings the total number of state-based and national schemes to eight (not including CPRS). These are:

• NSW Energy Efficiency Scheme
• NSW / ACT Greenhouse Gas Abatement Scheme(s), certificates are NGACs;
• NSW Renewable Energy Target (NRET), certificates are NRECs;
• QLD 13% Gas Scheme, certificates are GECs;
• Victorian Renewable Energy Target (VRET), certificates are VRECs;
• Victorian Energy Efficiency Target (VEET), AKA Energy Saver Incentive, certificates are VEECs;
• Mandatory Renewable Energy Target (MRET), certificates are RECs; and
• GreenPower Scheme, certificates are GPRs.

On 15th December 2008, the Federal Government released the CPRS white paper, and on 10 March, 2009 posted the draft legislation.