At the time of writing, carbon trading is scheduled for 2010.

Whilst political and financial events may yet delay the scheduled start date, Australian energy buyers will soon need to deal with this emerging market, understand it's impact on existing energy contracts and consider the competitive value of carbon for future contracts.

When introduced, this market-based scheme will allow parties to buy and sell permits for emissions or credits for reduced emissions of certain pollutants. Carbon trading will allow established emission targets to be achieved effectively, by allowing the market to drive and determine lowest-cost pollution abatement opportunities. Under the scheme, the regulator will first determine the total acceptable emissions, and then divide this total into tradeable credits or permits. These are then allocated to scheme participants. Participants that emit pollutants must obtain sufficient tradeable units to compensate for their emissions. Those that reduce emissions can sell their surplus units to those that find emission reduction more expensive or difficult.

Current information on this emerging market can be found here : www.climatechange.gov.au

Selectricity stands ready to assist our clients thru this new energy challenge.

 

Carbon Trading