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Carbon Market

Big polluters: Australian carbon price to stay, amid uncertainties – study

A study from the Australian National University has found that majority of the countries large emitters, carbon financiers, and carbon market experts feel the carbon price will make its mark in the country.

Roughly 79 percent of the respondents think the carbon price will be around in 2020, but 38 percent are skeptical and think it would be repealed in three years time, the report finds. Of those doubting the price, half think it would be reinstated in 2020.

Dr. Frank Jotzo, one of the researchers, say the results are "powerful" in the light of the political division in Australia between opposing parties supporting and rejecting the carbon pricing mechanism.

However, predictions on the future carbon price varied among the respondents.

"The average expected carbon price for the first three years of Australia's scheme is near the fixed price of A$23 per metric ton of carbon dioxide equivalent," said Dr. Jotzo. "But it then falls to a predicted A$11 per metric ton for 2016, before rising back to $22 per tonne in 2025."

When looked into specifics, 20 percent of those thinking there will be a carbon price in 2020 are expecting prices of A$35 per metric ton or more in 2025.

Dr. Jotzo also added that the survey reveals emitting companies have taken action to reduce emissions, with some expected to make investments of such nature in the next three years.

"Industry is not letting policy uncertainty get in the way of some action to reduce greenhouse gas emissions," he said. – EcoSeed Staff

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