Australia’s Carbon Trading Scheme

As a signatory to the Kyoto Protocol, Australia now has an international commitment to achieving a national greenhouse gas emissions target of 599 Million tonnes CO₂e  (108% of the 1990 level) in the first commitment period (2008 – 2012).

One mechanism which the Australian Government intends to use to help achieve this target is a market-based mechanism to put a price on carbon emissions for large emitters – a carbon trading scheme.  Australia’s proposed carbon trading scheme is called the Carbon Pollution Reduction Scheme (CPRS). 

The Carbon Pollution Reduction Scheme (CPRS) Timeline:
July 2008: Release of CPRS Greenpaper (Discussion document) for review and stakeholder feedback
December 2008: Release of CPRS Whitepaper (Policy document) for public review
2010: CPRS anticipated start date

The CPRS is expected to affect large organisations directly – via mandatory participation in the trading process – and other organisations indirectly, via flow on effects on the price of goods and services that have a sensitivity to carbon prices. 

Many of the organisations that are required to report under the National Greenhouse and Energy Reporting (NGER) Act are expected to also have to participate in the CPRS. 

However, there are some key differences between the two schemes. For example, CPRS proposed thresholds relate only to Scope 1 (direct) emissions; and the CPRS participation is required whether the organisation is a constitutional corporation or not.  This means that some organisations reporting under NGER will not have to participate in CPRS, and some organisations which do not have to report under NGER may still have to participate in the CPRS.  

Participation in the CPRS will help organisations that pursue emission reduction strategies to price in the benefits of taking action. 

Carbon Credits Worldwide
Right now, many companies are generating carbon credits from renewable energy or demand-side energy efficiency projects through a variety of schemes operating around the world.  International Voluntary Carbon Standards (such as Gold Standard VERs and the Voluntary Carbon Standard), or Certified Emission Reductions (CERs) administered through the Kyoto Clean Development Mechanism (CDM), are two classes of carbon credit traded globally.  

Since 2006, Earth Systems has helped clients realise their carbon credit potential by developing projects and facilitating the sale of over 700,000 carbon credits in international markets.

If you are interested in opportunities for generating and/or trading carbon credits through internationally recognised schemes, please contact Earth Systems.