Carbon Price in Australia Set to Double apparently
According to a story via Bloomberg, Australia’s Carbon Price May Be Double Forecast, Citigroup Says , the price of carbon is set to go large.
Australia’s carbon price may be more than double the earlier estimated level as pressure builds on the government to set stricter targets for emissions reductions, Citigroup Inc. said.
Carbon may be priced at about A$50 ($47) a metric ton through the planned emissions trading system, rather than about A$20, Citigroup said in a March 4 report.
Yipee! This would bring Australian carbon credits into line with the other Kyoto style credits in terms of price, and of course the reason one has a cap and trade system is so that the market can find the most optimal price for carbon abatement. So I’d not expect it to stay so high in the longer term, but in the short-term I would welcome a jump in price as Australia joins the global markets. This is all speculation right now however as we wait to see what Ross Garnaut really has to say. We’ve seen his interim report and that’s put the wind up a few people already, so it will be interesting to see if it stays that way, and if the Australian Government pay proper attention to it. — DS
Technorati Tags: Australia, business, carbon credits, carbon offsetting, climate change, climate optimism, economics, emissions reduction, emissions trading, Garnaut Review, global warming, Kyoto Protocol, Ross Garnaut
