November 8, 2012

Australia Launching Into Carbon Pricing Unknowns

Have we created a Monster?

It is the quest of this Blog to illuminate international relations issues relevant to Australia's green-carbon trading-environmental policies. To that end an essay written by | of Australian (super) blog Crikey is most revealing:

"Euro vision: Australia’s new carbon regime explained

Australia has hitched itself to Europe’s climate change wagon in a move that will have far-reaching — and uncertain — consequences for the domestic carbon scheme.
Yesterday’s decision to link Australia’s carbon scheme with Europe’s (and dump the floor price on permits) is a game-changer. Until then we were the southern hemisphere’s mouse that roared on climate change. Now we’ll effectively be part of a large, entrenched and relatively stable carbon price mechanism, which covers half a billion people." WHOLE ARTICLE

A major issue for Australia's Federal Government, Australian industries that generate large amounts of greenhouse gases and ultimately Australian consumers is the pegging from 2015 of Australia's carbon trading price to the European carbon market price. This European system enjoys a market of 500 million people. Australia's alignment with Europe more strenuous (serious?) greenhouse gas reduction regime will put Australia out of sync with the more growth dependent Chinese, Indian and US carbon policies. 

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