If the EU and Australia can join forces and work out mutual carbon credit trading efforts, the global carbon markets will see a much-needed boost
London, UK (PRWEB) September 09, 2011
Earlier this week, Australian Prime Minister Julia Gillard confirmed that, as of July 2012, the country’s top polluters would have to pay $23 in carbon tax for each emitted ton of CO2. The tax is expected to be in effect until 2015, and to be replaced by a compliance carbon credit trading scheme thereafter. The European community expressed its positive outlook and high hopes for Australia’s initiative for cleaner environment and responsible emissions practices. European officials hope that the new Australian carbon credit trading scheme will work well alongside the already-in-place European Union Emissions Trading Scheme (EU ETS), which holds the largest share of the global compliance carbon market today.
“If the EU and Australia can join forces and work out mutual carbon credit trading efforts, the global carbon markets will see a much-needed boost,” said Tonka Dobreva of sustainable economy focused digital media agency, Dezz (http://www.dezz.com). “The U.S. recently shifted its focus away from implementing a compliance cap-and-trade scheme, which was a low blow to the continuous efforts of all other countries doing their fair share of emission reductions. It is vital that the existing and emerging carbon credit trading markets work together if they are to continue maturing and make a lasting impact upon the environment.”
The new tax clearly shows Australia’s commitment to environmentally responsible practices. Gillard explained her motivation to implement such a measure by saying that “a big polluter can just keep chugging up [carbon] into the skies and not pay anything … Those big polluters will pay a price.”
From its implementation next year, the tax will be increased annually by 2.5 per cent until 2015, when it will be replaced by the compliance system. Gillard and her government expect that the Australian carbon credit trading scheme will join in the ranks of the EU and the New Zealand carbon markets in terms of trading capacity.
Australia’s clean energy efforts have received accolades from both European Commission President Jose Manuel Barroso and British Prime Minister David Cameron. Barroso said that Australia and the EU would work on gradually linking the two markets. Cameron claimed that the initiative “will add momentum to those in the developed and developing world who are serious about dealing with this urgent threat [that is global warming],” according to the Sydney Morning Helard.
Australia’s new carbon tax and plans for a carbon credit trading scheme come in a time when the international community is about to enter new negotiations on climate change after the Kyoto Protocol expires in 2012. Reflecting on the need of a new global agreement and emission reduction goals, European Commissioner Connie Hedegaard said today in a statement: "If we are to keep the Kyoto Protocol alive, we must have some indications that you [the other big economies] are entering at some point. We are willing to keep that possibility open, but we need other countries … to say when they are going to commit in a more binding form than we have seen hitherto." Australia’s commitment appears to be clear answer to Hedegaard’s appeal.
To get more information about the current state of the carbon trading markets and regulations, go to http://invezz.com/analysis/alternative-investments/what-are-carbon-credits-and-why-they-are-not-a-retail-investment-product
Dezz is a UK-based boutique digital media company providing original and reliable up-to-date information in the area of carbon credit trading and sustainable investments to large investment company decision makers, NGOs and to eco-minded individuals.