Carbon Neutral Energy Group: Australia to initially tax carbon and phase in trading later.

Australia may phase in an emissions trading program after launching a tax which could later be converted into a floating price.
March 3, 2011 - PRLog -- According to a cross-party proposal of which Carbon Neutral Energy Group has learned, Australia may see an initial carbon tax later morph into an emissions trading scheme when the tax is converted to a floating price.

The tax, which would be a fixed carbon price, may well be launched by as soon as 1 July 2012, as long as the proposal is passed into legislation later in the year, with emissions trading following three to five years later.

With the carbon tax in place, Australian companies would be unable to use any international carbon offsets, like certified emission reductions (CERs) and emission reduction units (ERUs), currently issued under the Kyoto Protocol by the UN.

As soon as trading kicks off and the price is floating, some international offsets would be allowed, Carbon Neutral Energy Group was told. The amount type of these offsets permitted could be dictated by the legislation to be promulgated in the interim.

This legislation could also delay the start of a trading system by up to 12 months before its scheduled launch depending on prices on the global carbon market.

The tax and trading system would encompass the energy, transport and industrial sectors, Carbon Neutral Energy Group was told, but would exclude agriculture. It would regulate all six greenhouse gases included in the Kyoto Protocol.

The plan does not dictate a level for the fixed carbon price, or whether there would be any price caps during the later trading phase. The proposal was submitted by Australia’s multiparty climate change committee, tasked with resurrecting plans to cap and price carbon emissions in the country after a pure emissions trading proposal fell apart amid political turmoil in 2010.

There are still very diverse views on the level of the fixed price of carbon and the potential links to the global carbon market among Australia’s political parties.

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Carbon Neutral Energy Group was founded for the purpose of helping our clients become environmentally conscious while providing them the same ability as institutions for investing in the carbon offset industry.
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