How Labor can improve the carbon pricing scheme

The government was wrong to have virtually no constraint on the use of international carbon credits in the Australian carbon trading scheme. But hopefully it is now looking at ways to address this deficiency.

On Friday the Australian Financial Review carried a report that the government is considering scrapping the $15 carbon price floor (operational in 2015), but also implementing greater restrictions on the use of international carbon credits, currently trading at $A3.40.

Placing some meaningful restrictions on the use of international carbon credits will improve the durability and effectiveness of the Australian carbon pricing scheme.

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