Is There Still Room To Game The System? YES!!!!!

 

Well, this ought to be interesting, if the schemes make it to 2015. 

Australian and EU carbon markets to be linked

Deal connecting two international markets from 2015 will create the world’s biggest emissions trading system

Here are the important things to remember.

Under the deal struck by Canberra and the European commission, Australian liable entities will be able to buy up to 50% of their carbon permits in Europe from 2015. In 2018, European entities will also be able to purchase credits from Australia.

“Linking the Australian and EU systems reaffirms that carbon markets are the prime vehicle for tackling climate change and the most efficient means of achieving missions reduction,” said Greg Combet, Australia minister for climate change and energy efficiency.  “It means the EU price will drive the Australian price and that will effectively be the floor price in our system too,” he said.

No, that last paragraph isn’t important, it was just too funny to leave out.  Yes, if you pay money to emit air, you will stop the climate from changing.   Sarcastic  Continuing……

Australia’s carbon price, which controversially began in July as a fixed $AUD23/tonne tax, will move to an emissions trading scheme in 2015. Originally, the scheme was designed with a $AUD15/tonne floor price (to take effect from 2015), a design feature intended to prevent the price crashing during the early years of trading.

It was criticised by businesses because it was significantly higher than (current) international prices (in Europe the price is €8 or $AUS10/tonne). This meant Australian businesses would have to go through a complex set of adjustments to top up any international permits bought at a price below the Australian floor price.

The removal of the floor price gives companies the chance to hedge their portfolios with European or international units and bank them in 2015,” said Elisa de Wit, head of law firm Norton Rose’s climate change practice.

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11 Responses to Is There Still Room To Game The System? YES!!!!!

  1. DirkH says:

    Good that someone still cares about the really important things in life.

    • suyts says:

      Lol, exactly! We’ll still have to see how this plays out, but this could be an annual windfall!

    • Bruce says:

      Thanks for that Dirk. I have to live here in Mr Combet’s electorate.

      The good news is if they have had to drop the floor price only 2 months after the tax started it means the pressure must be enormous. Internal polling must be terrible. Therefore if we get rid of the wretched tax (as the opposition LNP promises to do so) no pollie will ever dare bring it back.

      • Bruce, floor price was dropped, to disarm Tony Abbott. He was getting more support from the electorate, because; as paying the highest carbon tax = Australians as the most stupid. BUT, if is same as ”many other countries” the politically bias media will soon declare that Julia has much higher support than Tony… chance for Turnbull to jump in and carbon tax will stay. $15 a ton, billions of $$$, money for nothing; will be enough to reward the active Warmist…. who won? you will be happier to be run over by a 15ton truck, than 25ton truck; lucky you/

      • DirkH says:

        Bruce, my perspective is: For us Europeans, the entire collapsing Eurozone is the big thing ATM, with different symptoms in different countries.

        For the Australians, the big problem is not the Carbon Tax, but Gillard, and I think you’ll have that wrapped up real soon now. And exit Kyoto like Canada did, obviously.

        Whoever dreamed this idea up of someday sharing the carbon markets must be feeling very satisified now but I’m pretty sure the whole thing will be canceled long before 2015.

        Or maybe neither of us solves their problems, but in that case you’ll get a supply of carbon credits that gets 20% cheaper each year when it’s prized in Euros and the ECB continues printing Euros like they do now.

    • suyts says:

      Bruce, while I’m happy for you that the floor price was dropped, I’ve got to say, I’m a bit disappointed. I was hoping for at least a couple of years of making some obscene money on that. 😦

      While this tying to Europe’s insanity is better than the insanity alone, it still isn’t good. In fact, it may work to an even worse scenario. But, I think your political climate will change soon enough to stop this madness.

  2. Australia leveling carbon tax with the Europeans, is just a back-flip. Instead of lowering officially to European level tax, to make the electorate look less stupid; they did it acrobatically. They disarmed the only opposition’s weapon of: Australia pays the highest carbon tax.That on side;

    officially, for Europeans and Australians, should be called: ”The African Tax Heaven” Company CEO can tell the tax department that: he spent in an African tree plantation few million dollars = he will pay less tax home… proof for what and how much was spent in Africa…. don’t ask! Who will be policing it? You don’t know? The Green mobs, the active ”Warmist” in the blogosphere. They know what they are doing; unfortunately, the Fakes are assisting them. Warmist are riding on Fakes backs. If people on the street know what’s on my website, Combet would have dropped the carbon tax as a hot potato. Western ‘green money” today finances in Africa armed ”rangers” if somebody goes inside those big national parks for some firewood, or food to feed his starving children; shoot to kill, legally. That will increase, lots of western Warmist are waiting to get the cash and go to Africa; at least for the N/H winters, beautiful

  3. kelly liddle says:

    “I have to live here in Mr Combet’s electorate.”

    LOL

    • Bruce says:

      Did I mention he put fridge magnet calendars in our letterboxes a few weeks ago? And that the calendars start on 1 July 2012? So I can look at it on my fridge every day and be reminded that is the day he brought in the carbon tax? And that nothing on them suggests he’s the ALP MP for Charlton? Just so that we don’t associate our fine local MP with that smelly old party in government. He must think we’re all thick.

      Ooh, Kelly, election day cannot come too soon.

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