October 12th, 2012

Combet ditches carbon floor price in deal with Europe

By ABC News, 29 August 2012

Australia and the European Union will be linked in what will become the world’s largest carbon market under a deal announced by Climate Change Minister Greg Combet today.

Mr Combet said Australia was ditching its earlier plans to impose a floor price on carbon when the current fixed-price carbon tax moves to a floating market mechanism in July 2015.

Instead, he said the Australian market would be linked to that which operates in Eur0pe, where more than 500 million people are covered by carbon teading schemes, meaning the two blocs’ carbon price would be “effectively the same”.

A tonne of carbon in Europe currently only costs about $10, while Australia’s carbon tax is set at $23 a tonne.

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© ABC News

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