CIG sources report that Australia has laid groundwork for the trade in renewable energy certificates from the start of November 2009 with carbon credits beginning in early 2010, in what is seen as a concerted effort toward realizing the government's climate change program.
The Australian Stock Exchange (ASX Ltd) announced recently futures and options contracts in renewable energy certificates would begin in late November, with Certified Emission Reduction contracts making their debut early in the next year.
In Australia, CIG has learned, each renewable energy certificate signifies one megawatt hour of electricity generated from renewable energy and can be earned by installing solar panels, wind turbines and micro-hydro plants.
Australia has set a target of 20% of its power to come from green sources, or alternative energy by 2020.
In over-the-counter trade, renewable energy certificate prices have fallen to A$28.50 per certificate, a 2 year low due to a market flooded with RECs produced by installers of solar hot water panels and heat pumps.
The ASX also intends starting trade in carbon-emission permits, assuming the government's climate change legislation is endorsed.
The legislation, which aims to cut emissions by between 5 and 25% by 2020, has already been rejected once in parliament, but there are indications that it may pass on a second attempt, shortly, CIG has been told.
