The Australian Senate passed its carbon tax legislation this past Tuesday as a key component of its Clean Energy Legislation Package. It’s the first stage in the country’s plan to reduce carbon emissions to five per cent below 2000 levels by 2020 and 80 per cent below 2000 levels by 2050. It will fix a tax of A$23 ($24 CDN) per tonne on the country’s top 500 emitters starting in July 2012 with a plan to transition to a cap-and-trade system from July 2015 onward. Industries including mining, airlines, steel and power generation are covered. After July 2015, companies in these industries will need a permit for each tonne of carbon dioxide they emit.

As the title of the legislative package suggests, the Australian government has linked the emergence of a clean energy economy with the establishment of a price on carbon. I’ve taken a similar position in my most recent Greenhouse Gas Progress Report as well as in a recent blog. For one thing, pricing pollution is one surefire way to ensure a more level playing field so that renewable energy can compete in the marketplace.

South Africa is also considering legislation to place a tax on carbon emissions. Meanwhile, the Ontario government has indicated it won’t move on pricing carbon until at least 2013. While Ontario continues to delay, other jurisdictions are taking a leadership role while kick-starting their green economies. If Ontario wants to accelerate the growth in green energy and a low-carbon economy, putting a price on carbon will need to happen sooner rather than later.