Carbon credit trade: now open
Minister for Climate Change and Water, Senator Penny Wong, today announced two new measures that will assist Australian businesses and individuals to participate in the global carbon market.“As of today, individuals and businesses can open accounts in the Australian National Registry of Emissions Units,” Senator Wong said.
“This will allow them to participate in the global carbon market by trading Kyoto units using the Registry.
“The Registry will also be a crucial piece of infrastructure once the Carbon Pollution Reduction Scheme is introduced.”
The Australian Government also today established Australia’s National Authority for the Clean Development Mechanism (CDM) and Joint Implementation (JI).
The National Authority approves participation by businesses in CDM and JI projects under the Kyoto Protocol. Senator Wong said G20 leaders last week committed to stimulate investment in clean energy, renewables, and energy efficiency and provide financial and technical support for such projects in developing countries.
“In the recent G8 declaration, key economies made it clear that they are moving towards emissions trading schemes such as the Carbon Pollution Reduction Scheme,” Senator Wong said.
“Today’s milestones provide new opportunities for Australian businesses in the emerging global carbon market.
“It helps them access the cost-effective abatement opportunities that exist internationally.
“A robust global carbon market will mean that carbon pollution reductions occur first in the countries and sectors with the lowest-cost abatement opportunities. This reduces the costs – for the world and for Australia – of achieving the emissions reductions that the world needs.”
The CDM allows developed countries or authorised private entities to undertake projects that reduce emissions in developing countries.
JI allows developed countries or authorised private entities to implement emissions reduction projects in other developed countries.
The carbon credits generated by CDM and JI projects can be traded on international carbon markets.
From 1 July 2011, liable entities under the Carbon Pollution Reduction Scheme (CPRS) will be able to use eligible credits generated from CDM and JI projects for compliance purposes. Australia can also use the credits towards meeting its Kyoto target.
To contribute to Australia’s commitment to refrain from using nuclear-based credits for compliance under the Kyoto Protocol, the National Authority will not approve participation in nuclear CDM and JI projects.
As a further measure to meet this commitment, the government intends to rule out the use of nuclear-based CERs and ERUs for compliance purposes under the CPRS.