Carbon price down, international ambition up?

The plunge in the carbon price carries an upside - Australia could increase its emission reduction commitment ambition at low cost, encouraging other countries to sign-up to a more ambitious international climate agreement in 2015.

Kevin Rudd’s decision to move to trading a year early, in a way, makes it easier for Australia – one of the world’s worst polluters per capita – to achieve significant emissions abatement at a lower cost. It would also largely determine how much Australia contributes to ongoing international efforts to reduce emissions.

The changes won’t affect the setting of the emission limit under the ETS. An independent process is already underway into Australia’s national targets through the Climate Change Authority.



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