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Back You are here: Home Business Carbon Market Australia: $ 130 million to be released for national carbon trading program transition

Carbon Market

Australia: $ 130 million to be released for national carbon trading program transition


Australia’s Carbon Pollution Reduction Scheme would allow carbon emitting industries to buy CO2 emission permits from the government or sell these should they be investing in renewable energy or clean technology projects.STOCKXPERT

In Australia, at least 130 million dollars (US $107.7 million) in cash assistance will be given to facilities that might get seriously affected as a statewide greenhouse gas reduction program transitions to abide by a national cap-and-trade scheme that the government is considering.

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The Greenhouse Gas Reduction Scheme (GGAS) of New South Wales is the state’s program for addressing greenhouse gas emissions arising from electricity production and consumption. But it might be replaced by the Carbon Pollution Reduction Scheme (CPRS) that the Australian government is planning to reintroduce in parliament before the start of the Copenhagen climate talks.

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"GGAS was one of the world's first emissions trading schemes for reducing carbon pollution. The transition package helps to ensure (that the affected) entities continue to remain viable and able to make a valuable economic and environmental contribution to Australia,” said Minister for Climate Change and Water Sen. Penny Wong, who announced the aid yesterday.

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The CPRS aspect of the bill has been rejected by the parliament in early August this year. The government plans to re-introduce it in parliament before the start of the Copenhagen climate talks.

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Of the total cash assistance, 80 million dollars is planned to go to the holders of unused NSW Greenhouse Gas Abatement Certificates, while 50 million dollars will go to waste coal mine gas, landfill gas, and avoided methane generators. The said sectors and facilities are those that “may be adversely affected” by the shift to the CPRS, according to the government.

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The Australian government further said that a vast majority of the projects operating under the GAAS will not be hampered by a CPRS transition.

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GGAS uses project-based activities to offset the production of greenhouse gas emissions, establishes annual statewide greenhouse gas reduction targets, and requires individual electricity retailers and parties who buy or sell electricity in New South Wales to meet mandatory benchmarks. When participants fail to meet their benchmarks, a penalty is imposed.

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The CPRS, a component of an originally planned single legislation along with the Renewable Energy Target Legislation, is the government’s cap-and-trade plan. The CPRS would allow carbon emitting industries to buy CO2 emission permits from the government or sell these should they be investing in renewable energy or clean technology projects.


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