Josh Frydenberg rules out carbon trading in electricity sector

Energy minister says Turnbull government will not support emissions intensity scheme regardless of Finkel review

The energy minister, Josh Frydenberg, says the Turnbull government will not allow carbon trading in the electricity sector despite the high likelihood that the looming Finkel review will endorse an emissions intensity scheme as one of the better policy options that could be adopted.

Frydenberg told Sky News on Monday the government would not go down the path of an emissions intensity scheme (EIS), despite a host of industry and environment groups arguing over the past few months that trading in Australia's energy sector would be an effective policy mechanism to reduce emissions at least cost to households and businesses.