What’s next for the carbon price?

The government is planning to extend the carbon tax by one year to April 1.

But the Labor Party is not on board, with some MPs calling for a short-term extension.

Key points:The carbon price is set to go up by $US30 per tonne for 2019, up from the current rate of $US1.20 per tonme for 2020 and $US2 per ton for 2021The carbon tax will increase to $US40 per ton in 2020, $US50 per ton by 2021 and $USD60 per ton from 2024 onwardsThe Government says the carbon pricing will cost $US10 billion in 2020 and 2021The Government has said it is extending the carbon rate to April 2018 and $10 billion for 2021, but the Coalition has not committed to a carbon price for the rest of the year.

The carbon pricing is set for an increase of $10 per ton of CO2 for 2019 and $20 per tons for 2020, with the remaining increases in 2021.

The Government is also proposing to extend a cap on the amount of carbon dioxide emissions the Government can legally emit by $1.5 billion a year for the next 10 years.

In a separate announcement, the Government announced it will continue to pay the carbon levy on petrol, diesel and electricity.

“We’re paying the price of carbon,” Treasurer Scott Morrison said.

Labor is seeking to end the carbon-intensive fuel-efficiency standards that are in place across the nation and replace them with a cap-and-trade system.

The carbon levy, the main driver of the price hike, has not been in place since 2008 and the Coalition says it will only become more important over the coming years.

“What’s happening now is a real threat to our economy and our way of life,” Opposition Leader Bill Shorten said.

“This is an economic and environmental crisis, not a political crisis.”

The Carbon Pricing and Emissions Regulations (CPER) is set up under the carbon pollution limits that were in place when the carbon emission levels were high, and the Government has since repealed them.

But the Government says it has not yet made a decision about the carbon cap- and-trade scheme.

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