Australia has linked with the European Union carbon emissions scheme to create a global carbon trading system.

By The Trend is Blue | Mon 10th Sep 2012 12:00

EU and Australia link trading emission systems Australia has linked with the European Union carbon emissions scheme to create a global carbon trading system.

The Gillard Government has said that the EU and Australia have agreed to link their carbon markets from July 2015. As per the plans disclosed by the Australian Government, Australian companies can buy European carbon permits from 2015, whereas European companies can buy from 2018. Companies can buy half of carbon credits with international units, but placed a limit of 12.5 percent from UN backed Kyoto units.

The Australian Government has dropped the A$15 carbon floor price because the concern from business is that they will pay a higher price compared to Europe.

Greg Combet, the Australian climate and energy minister, said the agreement “reaffirms that carbon markets are the prime vehicle for tackling climate change and the most efficient means of achieving emissions reductions.”

Connie Hedegaard, the EU’s climate commissioner, hailed it as “the first full international linking of emission trading systems” and said it would “build further momentum towards establishing a robust international carbon market.”

Ref: http://www.ft.com/cms/s/0/68d0d31a-f0f5-11e1-b7b9-00144feabdc0.html#ixzz264OGKbQd