Australia and the EU agreed to link their carbon trading schemes by 2018. Businesses in Australia will be able to use EU allowances to cover up to 50 percent of Australian liabilities from July 2015. Full two-way trade will not commence until 2018.
Australia’s carbon price, which began in July as a fixed 18.99 euro/ton tax, will move to an emissions trading scheme in 2015. Originally, the scheme was designed with a 12.39 euro/ton floor price, to take effect from 2015 but now Australia will scrap its planned carbon floor price when its emissions trading scheme starts in July 2015.
“Linking the Australian and EU systems reaffirms that carbon markets are the prime vehicle for tackling climate change and the most efficient means of achieving missions reduction,” said Greg Combet, Australia minister for climate change and energy efficiency. (joint press release)
Neighbouring New Zealand also has an emissions trading scheme, and talks about linking with New Zealand’s scheme are taking place.
The EU is opening talks with South Korea, China and the state of California, where carbon markets are in various states of development, about possible forms of collaboration.