1 00:00:00,320 --> 00:00:01,400 Speaker 1: Heather Do for sel. 2 00:00:01,560 --> 00:00:03,880 Speaker 2: The government's announced it's going to fix the failing emissions 3 00:00:03,920 --> 00:00:06,000 Speaker 2: trading scheme, which out of the last six, of course, 4 00:00:06,040 --> 00:00:07,680 Speaker 2: five of them are failed to clear, and it's going 5 00:00:07,720 --> 00:00:09,880 Speaker 2: to do it by cutting the number of available carbon 6 00:00:09,920 --> 00:00:11,960 Speaker 2: credits by more than half. Now, the point here is 7 00:00:11,960 --> 00:00:14,640 Speaker 2: to drive up the price of carbon. Simon Watts is 8 00:00:14,640 --> 00:00:16,440 Speaker 2: the Climate change minister. Hey, Simon. 9 00:00:18,360 --> 00:00:19,360 Speaker 1: Having here, you're welcome. 10 00:00:19,360 --> 00:00:20,760 Speaker 2: How much you want the price to go up by? 11 00:00:21,760 --> 00:00:23,920 Speaker 1: Well, look, what we've made a decision on is to 12 00:00:23,960 --> 00:00:26,119 Speaker 1: reduce the number of units. We want to see that 13 00:00:26,360 --> 00:00:30,440 Speaker 1: price increase, and it's a supply and demand challenge. Take 14 00:00:30,520 --> 00:00:32,920 Speaker 1: out some of the supply. We should see upward pressure 15 00:00:32,920 --> 00:00:35,520 Speaker 1: on the price. I don't know where that's going to land. 16 00:00:35,560 --> 00:00:38,800 Speaker 1: Executive and comment on that, but you know what we've 17 00:00:38,840 --> 00:00:40,519 Speaker 1: done here today is to make sure we've got some 18 00:00:40,560 --> 00:00:42,920 Speaker 1: credibility back into this market, which hasn't been the case 19 00:00:42,960 --> 00:00:43,800 Speaker 1: in the past. Yeah. 20 00:00:43,840 --> 00:00:45,800 Speaker 2: The problem is, of course, if you push the price up, 21 00:00:45,800 --> 00:00:48,040 Speaker 2: which is what's going to happen here, then price of 22 00:00:48,080 --> 00:00:50,360 Speaker 2: fuel goes up, doesn't it. Life gets more expensive in 23 00:00:50,440 --> 00:00:51,000 Speaker 2: this country. 24 00:00:51,840 --> 00:00:55,120 Speaker 1: Oh look, we give kicked that around considered because it's 25 00:00:55,120 --> 00:00:58,280 Speaker 1: obviously a risk area, but with the data that we've got, 26 00:00:58,320 --> 00:01:01,320 Speaker 1: the doesn't indicate that we're going to see a significant 27 00:01:01,360 --> 00:01:05,119 Speaker 1: implication around the inflation aspect. But simon, how can. 28 00:01:05,080 --> 00:01:06,800 Speaker 2: You know You don't. You just told me you don't 29 00:01:06,800 --> 00:01:08,360 Speaker 2: know how much the price is going to go up by, 30 00:01:08,400 --> 00:01:11,760 Speaker 2: therefore you cannot know how much more expensive everything gets. 31 00:01:12,080 --> 00:01:14,560 Speaker 1: Well, look, we do. We model a range of scenarios 32 00:01:14,600 --> 00:01:15,240 Speaker 1: in regardless. 33 00:01:15,280 --> 00:01:16,600 Speaker 2: So what's your range telling you? 34 00:01:17,840 --> 00:01:21,560 Speaker 1: Well, the range that we've modeled through looks like inflation 35 00:01:21,720 --> 00:01:24,640 Speaker 1: and pacts of around zero points zero three percent by 36 00:01:24,680 --> 00:01:27,600 Speaker 1: twenty twenty nine. So again it can immterial and rea again. 37 00:01:27,440 --> 00:01:29,920 Speaker 2: Which means literally nothing to any of us. So it's 38 00:01:30,000 --> 00:01:31,480 Speaker 2: what does it mean for the price of fuel? How 39 00:01:31,520 --> 00:01:32,640 Speaker 2: much is it going to add to the price of 40 00:01:32,680 --> 00:01:33,400 Speaker 2: fuel per litter? 41 00:01:34,880 --> 00:01:37,399 Speaker 1: It could be up to about three to four cents 42 00:01:37,800 --> 00:01:40,040 Speaker 1: per liter by twenty twenty nine, so that is not 43 00:01:40,160 --> 00:01:42,720 Speaker 1: significant in the context of the overall price. 44 00:01:42,959 --> 00:01:44,720 Speaker 2: How much does the ETS add to the price of 45 00:01:44,760 --> 00:01:45,760 Speaker 2: fuel at the moment. 46 00:01:47,240 --> 00:01:50,880 Speaker 1: It is, Well, it's embedded within that. I don't at 47 00:01:50,920 --> 00:01:52,200 Speaker 1: the number in front of me at the moment. 48 00:01:52,280 --> 00:01:54,360 Speaker 2: Okay, So whatever it is at the moment plus three 49 00:01:54,360 --> 00:01:55,280 Speaker 2: to four cents. 50 00:01:55,560 --> 00:01:58,000 Speaker 1: Yeah, correct, do you does? 51 00:01:58,560 --> 00:02:00,720 Speaker 2: How confident are you it's actually going to clear the auction. 52 00:02:02,440 --> 00:02:05,160 Speaker 1: We'll look back to a factor that will come in 53 00:02:05,200 --> 00:02:06,920 Speaker 1: a couple of weeks. I don't have a view in 54 00:02:07,000 --> 00:02:08,880 Speaker 1: regards to that, but what we have seen as we've 55 00:02:08,880 --> 00:02:11,680 Speaker 1: seen some pretty positive feedback from the market today in 56 00:02:11,720 --> 00:02:15,400 Speaker 1: regards to the decisions we've made. It's been taken on 57 00:02:15,440 --> 00:02:18,200 Speaker 1: board pot of positively and you know that all helps 58 00:02:18,240 --> 00:02:20,400 Speaker 1: with the market credibility, which was the major issue that 59 00:02:20,440 --> 00:02:21,240 Speaker 1: we're trying to address. 60 00:02:21,400 --> 00:02:24,480 Speaker 2: Simon, Thank you appreciated that. Simon Wat's Climate Change Minister. 61 00:02:25,280 --> 00:02:28,480 Speaker 2: For more from Hither Duplassy Alan Drive, listen live to 62 00:02:28,560 --> 00:02:31,600 Speaker 2: news talks. It'd be from four pm weekdays, or follow 63 00:02:31,639 --> 00:02:33,400 Speaker 2: the podcast on iHeartRadio.