The real hole in global carbon trading

Europe’s carbon price collapse gives Australia an opportunity to scoop up permits with abandon after 2015, but if our economic fortune reverses a floating price will place us in a very tight spot.

There is fuss and hullabaloo aplenty today over the collapse of the price of carbon permits in Europe. Industry bodies such as AiG, ACCI and BCA are gnashing their teeth over that fact that a tonne of continental carbon costs about $4, whereas a tonne of carbon australis costs $23.

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