Clean Energy Future plan

Under the government's carbon pricing plan announced on Sunday, more than half of the emissions abatement to 2020 will come from companies buying it from overseas, at an estimated cost of $3 billion, with the remainder coming from Australian carbon farming and other initiatives.

A new body called the Clean Energy Regulator (CER) will determine companies' carbon price liabilities and operate the national register of emissions units, and work alongside the Climate Change Authority headed by former Reserve Bank chief Bernie Fraser.

Already more than 30 Australian-based brokers and companies, such as the Commonwealth Bank and Origin Energy Electricity, are registered with the CER.

While a carbon price will provide incentives to reduce energy consumption, manufacturing businesses will be supported in identifying and implementing technologies that improve energy efficiency and reduce their exposure to changing electricity prices.

The $1.2 billion Clean Technology Program aims to provide support for manufacturers through three components:

CLEAN TECHNOLOGY INVESTMENT PROGRAM

If you're a manufacturer, the $800 million Clean Technology Investment Program will provide grants to allow you to invest in energy efficient equipment and low-pollution technologies, processes and products.

CLEAN TECHNOLOGY - FOOD AND FOUNDRIES INVESTMENT PROGRAM

If you're in the food processing, metal forging and foundry industries, special assistance grants will be provided to help you invest in energy efficient equipment and low-pollution technologies, processes and products. It's anticipated that the grants will be worth up to $150 million over six years to the food processing industry and up to $50 million over six years to the metal forging and foundry industries.

CLEAN TECHNOLOGY INNOVATION PROGRAM

To support business investment in research and development (R&D) in the areas of renewable energy, low-pollution technology and energy efficiency, an additional $200 million of grants will be provided over five years. This will be in addition to the R&D Tax Concession.

n April 2010, AFP deputy commissioner for national security, Peter Drennan, said carbon trading "may in time provide opportunities for organised criminal syndicates to exploit new markets and engage in fraudulent activity".

An AFP spokesman told AAP this week the final design of the scheme's governance was still being developed by the climate change department.

"The AFP has commonwealth responsibilities in relation to the investigation of serious fraud in government programs and in addressing organised crime," the spokesman said.

"It is too early to speculate on any potential criminal risks or the size and impact of any obligations for the AFP.

"However, the AFP will work closely with the relevant agencies ... to address identified risks, enhance the scheme's overall integrity, and manage any law enforcement resourcing impacts."

GreenCollar chief Schultz said carbon trading was becoming like buying any other commodity, but some companies will find that investing in Australian-based abatement projects, such as forests and farms that cut their use of fertilisers, is better than looking overseas.

"Some product is cheaper than others and some has a higher or lower risk profile than others," he said.

"There is significant upside for companies that are able to invest directly into the primary market - companies that create credit, create the project itself as opposed to buying on the secondary market, which is cheaper but has a higher risk."

Schultz said the public could trust the auditing system as "these are the same people who tell you ships won't sink and planes won't fall out of the sky".

"The same level of audit is brought to this, and in fact it is more rigorous," he said.

The public concern was driven largely because in many cases "you are trading something that didn't happen", Schultz says.

"Most of what you are trading is an avoided emission. You are trading something that didn't happen, like stopping deforestation. It's not planting trees but has a great impact," he said.

"By not chopping down a forest that is however many millions of tonnes of CO2 that goes into the atmosphere and that compensates another activity.