Australia/EU carbon link
The Australian parliament passed legislation late on 26 November 2012 to partially link the Australian Carbon Price with the European Union (EU) Emissions Trading Scheme (ETS) from 2015. EU allowances issued under the EU ETS will be able to be used by Australian liable entities from 1 July 2015. The $15 floor price that was to have applied form 1 July 2015 has been scrapped. This will give Australian liable entities access to lower priced units and greater flexibility.
The legislation also includes various other amendments, including amendments in respect of gas supply liability which are designed to capture emissions that may currently fall outside the Obligation Transfer Number (OTN) regime. This is relevant to businesses supplying or receiving gas. Please ask us if you would like more information.
Australia and the EU are further negotiating for a full two-way link to apply from 1 July 2018, which would allow EU liable entities to use carbon units issued under the Australian mechanism.1
Australian post Kyoto commitment
Australia has nominated a provisional emissions target to limit emission to 99.5% of 1990 levels from 2013 to 2020. This is equivalent to Australia’s unconditional commitment to reduce emission by 5% below 2000 levels by 2020. Australia is still open to increase the target to up to a 25% reduction if equivalent global action is taken.
This may support the current UN climate change negotiations at Doha.2