Australian ETS to link up with world’s largest ETS

Tuesday, 27 November, 2012

Legislation passed by the Senate last night will enable Australia and Europe to begin linking their emissions trading systems. As a result, Australian emitters that are liable for the carbon price will have broad access to the global carbon market.

Businesses can now purchase permits under the European Union Emissions Trading System to use for compliance under Australia’s system from 2015. This will provide flexibility to businesses with operations in both Australia and Europe, which will reduce compliance costs.

Linking emissions trading schemes is said to broaden cost-effective abatement options and ensure emissions are reduced at least cost. This will benefit Australia’s businesses and economy.

From 2015, Australia will have the same carbon price as that applying in 31 other countries, with a combined population of more than 500 million people - the same carbon price as our second-largest trading partner.

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