BIG carbon-polluting industries will be given a "safety valve'' fee for their emissions as a way of limiting "unanticipated'' costs, under a revised Howard Government climate policy to be released this week.
A safety valve price means that if the cost of low emissions technology proves too expensive at first, or the market price for carbon rises sharply, it effectively puts a lid on the carbon price because firms can opt for a safety valve price instead.
The policy guidelines will also formalise recognition of "credible domestic and international carbon offsets''.
The Business Council for Sustainable Energy's executive director, Ric Brazzale, said yesterday that setting a safety valve price would be difficult and could undermine the market price if it were too low.
By: Sid Marris, Steve Lewis