No targets, no EU carbon link
AUSTRALIA would need to adopt mandatory greenhouse targets before it could link with the European Union’s emissions trading market. The federal Government plans to have an emissions trading scheme operating by 2012 and hopes to link it with regional and global markets.
The EU market, operating since 2005, is pursuing linking schemes with such major developed countries as Japan, Russia and Canada. The EU will also look at linking its market with countries which have not ratified the Kyoto Protocol.
Australia and the US are the only developed countries not to have adopted the climate change blueprint, which expires in 2012.
The Howard Government has also refused so far to set any greenhouse targets, but has committed to fix an aspirational goal by next year once economic modelling has been done. The report of its emissions trading task group also recommends interim targets.
To link with the EU market, it’s understood that Australia would need to have mandatory targets to cut emissions. The EU would also want a negotiating process to link the two markets.
The European market is under review ahead of its second phase over 2008-12.
The carbon price collapsed towards the end of the start-up phase because of an over-allocation of credits. For the second phase it has been trading at around 25 euros per tonne.
Global warming will be the focus of September’s APEC summit in Sydney, and crucial talks under the United Nations climate change framework take place in Bali in December. AAP