Australian Carbon Markets
Australia passed its Clean Energy Legislative Package in 2011 and introduced a price on carbon in July 2012. The scheme, known as the Carbon Pricing Mechanism (CPM), starts with a fixed price period of three years, in which international units are not allowed to be surrendered for compliance. From 2015 onwards the CPM moves to a "cap and trade" scheme with market-determined price and the possibility of using eligible international emissions units. This includes units issued under the flexible mechanisms of the Kyoto Protocol, namely CERs, and ERUs. In addition, the government announced in August 2012 that it would enable liable entities to use EUAs - allowances issued under the EU Emissions Trading System (EU ETS) - by establishing a one-way link between the CPM and the EU ETS from July 2015 (that is, EUAs can be used under the CPM but Australian allowances cannot be used in the EU ETS).
Domestic offsets from the Carbon Farming Initiative (CFI) can be used for up to 5% of a liable entity’s compliance needs during the fixed price period and in unlimited quantity from 2015 onwards. Until 2020, liable parties must meet at least 50% of their annual liability with domestic permits or credits and eligible Kyoto units (CERs and ERUs) can only make up 12,5% of the remaining 50%.
For businesses, Perspectives offers a wide range of expertise through our Carbon Project Services related business fields. Whether your business is based in Australia and is looking to access the international carbon market, or is based elsewhere and is interested in the Australian carbon market we can offer the following services:
- Carbon strategy advice, including accessing the international market (CDM) and the Australian offset market (CFI)
- CDM opportunity identification, screening and assessment
- Programme of Activities (PoAs) and CDM Project management from idea stage to registration and post-registration support
- PoA and CDM Project risk assessment (due diligence) for CER buyers and investors
- Methodology work, including new CDM and CFI methodologies
- Project and PoA Portfolio optimization
For government agencies, non-government organisations and businesses interested in policy developments, Perspectives offers a wide range of services through our Carbon Policy Advice related business fields. These include:
- Analyzing and supporting the further development of greenhouse gas mitigation policy settings including Australian policy settings
- Understanding the new market mechanisms being developed under the UNFCCC and their implications for the existing market-based mechanisms
- Assistance with NAMA capacity building in regional partner countries, as well as NAMA identification and elaboration
- Post-2012 carbon procurement, fund design and market access strategies
- Design of policies for adaptation to climate change, as well as selection criteria and M&E processes
- Capacity building in relation to the international carbon policy framework and markets
As a partner for the Australian carbon markets, Perspectives offers clients the ideal combination of:
- Comprehensive hands-on experience with international climate policies and market mechanisms such as CDM and JI since 1994, with over 450 references in these fields by the end of 2011
- Deep practical experience working with clients involved in the European Union’s Emissions Trading System (EU ETS) since 2003
- In-house expertise with over 8 years of direct experience working in the Australian policy framework and business environment
- A strong network of partners in Australia including research institutions and project developers
Perspectives has a long history of supporting a variety of stakeholders in navigating and adapting to the introduction of emissions trading legislation. Our in-house Australian market expert has worked closely on the development of Australia’s emissions trading policy framework since 2002, including on behalf of Origin Energy, one of Australia’s leading energy corporations.