The government of Australia and the European Union recently announced their agreement to begin linking their respective carbon markets in 2015, which would create the world’s largest integrated emissions-trading market. The agreement would enable entities whose emissions are covered by the Australian system to purchase up to 50% of their emission allowances in Europe, as of the 2015-2016 compliance year. Entities whose emissions are covered by the EU system are expected to be able to purchase allowances from Australia by 2018.