Implications for business from Australia-EU link

The decision to drop the carbon price floor has made the use of international emission allowances much more straightforward, even though it is likely to have reduced demand for CERs. Carbon prices will now heavily depend on decisions by the EU.

The Government's announcement today that the Australian Carbon Pricing Mechanism (CPM) will link to the European Emissions Trading System (EU ETS), initially through a "one-way" link, from 2015, is significant for Australian liable entities, carbon market stakeholders, and for the broader international carbon market. 

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