by clicking the arrows at the side of the page, or by using the toolbar.
by clicking anywhere on the page.
by dragging the page around when zoomed in.
by clicking anywhere on the page when zoomed in.
web sites or send emails by clicking on hyperlinks.
Email this page to a friend
Search this issue
Index - jump to page or section
Archive - view past issues
Trading Carbon : December - January 2011
30 AUSTRALIA The introduction of an Australian carbon price is on the horizon following the passage of the government's Clean Energy Bills in parliament. The legislation will result in a national compliance market with an initial carbon price of A$23 (US$24) a tonne of carbon dioxide (CO2). It details a two-stage carbon pricing policy that is essentially a fixed price start to an emissions trading scheme (ETS). The fixed price period is to begin on July 1, 2012, and run for three years, before transitioning to a flexible price from July 1, 2015 onwards. The legislation required to implement the Carbon Farming Initiative (CFI), a complementary policy measure to the Clean Energy Bills package, successfully passed through the federal parliament on August 23, 2011. As such, the CFI -- which is scheduled to commence on January 1 -- has a head start over the carbon pricing mechanism. The CFI is a land-based domestic offset programme. It aims to financially incentivise farmers, landholders, landfill operators and forest owners to undertake baseline and credit projects that abate or sequester carbon emissions. Where projects are implemented in accordance with the rules set out in the CFI legislation, developers will receive revenue in the form of saleable credits -- known as Australian Carbon Credit Units (ACCUs). One ACCU is awarded for the abatement or sequestration of one tonne of CO2 equivalent emissions. Depending on the methodology used, CFI projects will either generate compliance or voluntary ACCUs. Compliance ACCUs will be issued to project activities with associated emissions that fall within Australia's Kyoto Protocol emissions reporting inventory. Such project methodologies include reforestation, the capture and combustion of landfill gas, the reduction of nitrous oxide emissions from fertiliser use and the management of methane emissions from pig and dairy REUTERS/DAVID GRAY FarmingCarbon LLOYD VAS TAKES A LOOK AT AUSTRALIA'S CARBON FARMING INITIATIVE Dec 2011/Jan 2012 www.pointcarbon.com