The proposal has two components that would introduce levies, in the form of purchasable permits, on thermal and metallurgical coal. The proposal would also introduce a declining annual cap on the export of thermal coal. The export of metallurgical coal would not be capped.

Component 1: Thermal coal

• Component 1 would require coal exporters to purchase permits in order to export thermal coal. The number of available thermal coal permits would be capped each year, with the cap declining over time as per the following table.
  • This would result in a complete ban of thermal coal exports by 1 July 2030. The amount coal exporters spend on permits would be tax deductible for company tax purposes. Permits would only be available for purchase by coal exporters.
• The following table shows the yearly coal permit cap and permit price to 2029-30.

Component 2: Metallurgical coal

• Component 2 would require coal exporters to purchase permits in order to export metallurgical coal. The number of available metallurgical coal permits would be uncapped. The amount spent on permits would be tax deductible for company tax purposes. Permits would only be available for purchase by coal exporters.
• The following table shows the yearly metallurgical coal export permit price over the medium term.

The proposal is ongoing and would be in effect from 1 July 2022.