It has been reported that Australia’s coal-fired power stations will have access to emergency government loans and administrative help to deal with the country’s new carbon tax.
Already, Hazelwood power station, owned by GDF Suez, has gained a “no action” letter from the financial regulator ASIC in case the carbon tax leads to asset writedowns jeopardising the generator’s financial services licence.
In addition, a report in the Australian Financial Review said that the government will speed up compensation to Australia’s coal sector through free carbon permits, to soften the impact of the carbon price on the value of assets of coal-fired generators.
Australian Prime Minister Julia Gillard will unveil details of the carbon tax on Sunday, putting a price on carbon ahead of a full emissions trade scheme.
About 80 per cent of Australian electricity comes from coal, and electricity generation makes up 37 percent of national emissions.
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