“Anything that is done to reduce the risk of the scheme, to reduce regulation or open new markets and create signals for investment will be welcomed by business and industry,” SBA CEO Andrew Petersen said.
He believed this step was significant as it would encourage the EU to examine measures such as withholding carbon permits from auction to bolster their flagging price, particularly as there had been calls from businesses in Australia and across Europe that the levels were too low to catalyse large-scale low-carbon investment.
“Linking with the EU scheme, along with further work on the creation of a fungible Asian Carbon Market is an important next step,” Andrew Petersen said.
He said that the clearest mechanism for tackling carbon emissions and driving investment in clean technology was to put a fair price on the polluting externality that greenhouse gases emissions represent. The market should then be left to do the rest.
“The only compelling argument against carbon pricing is that imposing a price in one jurisdiction and not others distorts markets and results in "carbon leakage" as mobile industries move to avoid additional carbon costs. With this announcement by both governments, that argument has been eroded.
“I believe that progressive Australian business will be looking to the opportunities that will emerge with the creation of a new inter-linked international carbon market imposing a unified carbon price on key markets in Europe, China, South Korea, Japan, New Zealand and California, all of which could be in place by 2020,” Mr Petersen said.
Contact: Andrew Petersen – 0412 545 994 or firstname.lastname@example.org