Having a clean
and simple carbon tax will help preserve a fair, uniform and transparent price
signal on all units of emissions, to incentivise emissions reduction where it
presents the lowest cost.
A system with
benchmark-based exemptions, in which exemptions are provided to many sectors
resulting in different facilities paying different prices, would erode the
price signal of the carbon tax and make it less transparent.
such benchmarks can be a complicated process, and implementing them could
increase administrative and compliance costs.