William Westaway, one of our sustainability consultants and an expert in lifecycle assessment and impact modelling has been reflecting on Australia's evolving carbon market this week. What this all means and how we can help.
The Australian carbon market continues to evolve, we hope this makes carbon offsets more accessible for businesses. If you’re thinking about going carbon neutral Perspektiv is happy to explain the process.
A recent online article by Michael Mazengarb on the Renew Economy explains how Australia is about to get its first proper carbon market, and it could save business $100m. Read more below or view the full article here.
Australia will soon have its first fully-fledged market for carbon permits, with the Clean Energy Regulator kick-starting work to establish a dedicated carbon trading exchange that will streamline and speed up trading of Australian carbon units.
The CER has issued an expression of interest for potential developers of an online exchange for emissions offsets, allowing offsets to be quickly traded. It is expected to support the emergence of new players into market for emissions emissions reductions.
The idea of establishing a dedicated exchange for government issued carbon units is to accelerate the trading and transfer emissions permits on a day to day basis, avoiding the need for traders to operate through often cumbersome emissions unit registries and is expected to significantly reduce transaction costs.
The exchange would likely interact with registries, allowing trading to occur via an online platform, and ‘reconciled’ at the end of a days trading, in much the same way as stock exchanges operate.
The CER estimates that as much as $100 million in business costs could be avoided through the establishment of the carbon exchange.
The CER, which issues Australian Carbon Credit Units (ACCUs) as part of the Emissions Reduction Fund, and sees the trading of ACCUs as the likely beneficiary of such a trading exchange, particularly as the market for voluntary emissions reductions continues to grow.