Asia-Pacific Emissions Trading Forum

The Asia-Pacific Emissions Trading Forum, otherwise known as the AETF, is an information service and business network dealing with domestic and international developments in emissions trading policy in the Asia-Pacific region. The AETF was originally called the Australasian Emissions Trading Forum, and was founded in 1998 under the auspices of the Sydney Futures Exchange. Since 2001 the AETF has published the AETF Review six times a year. This publication includes original articles on emissions trading developments and related topics.

Emissions trading is a key element of the Kyoto Protocol, and national and regional schemes are operating in the European Union and New Zealand, and are under active consideration in Australia, Japan, and most recently, in the United States. International climate negotiations are currently underway and will culminate at the United Nations Climate Change Conference 2009 in Copenhagen, under the auspices of the United Nations Framework Convention on Climate Change.

Australia’s Carbon Pollution Reduction Scheme

The policy and legislative background

The Rudd Government’s Carbon Pollution Reduction Scheme (CPRS) White Paper represents the culmination of an unprecedented policy development effort in Australia, supported by the most detailed economic modelling undertaken by the Department of the Treasury (Australia).

The December 2008 White Paper was one milestone towards the Government's ultimate policy objective of implementing a cost effective and forward looking climate policy, which fully accounts for Australia’s particular environmental, economic and geopolitical situation. The exposure CPRS legislation, released in March 2009, converted the policy positions of the White Paper into legislative format.

The legislation and Parliament

The Parliamentary Secretary for Climate Change, Greg Combet, presented the legislation to Parliament on 14 May 2009. The passage of this legislation will depend critically on the support of other parties for passage through the Senate.

Australia’s emissions reduction target

On 4 May 2009 the Rudd Government announced a new, aspirational target for Australian emissions reductions. The Government has committed to reduce emissions to 25 per cent below 2000 levels by 2020 if an international agreement, stabilising greenhouse gases in the atmosphere at 450 parts per million CO2 equivalent or lower by 2050, is achieved.

Before this announcement, Australia was committed to an unconditional 5 per cent reduction below 2000 levels, and a conditional 15 per cent reduction below 2000 levels, if an international agreement commits major developing economies to substantially restrain emissions, and developed economies to take on reductions comparable to Australia.

International emissions trading developments

The legislative process in Australia is being undertaken in an environment of continuing uncertainty because the future international policy regime remains unresolved, and ultimately Australia’s national emissions reduction target is dependent on this international regime.

Australia is not the only country introducing emissions trading legislation. In the United States, the American Clean Energy and Security Act, otherwise know as the Waxman-Markey Bill (after Democratic politicians Henry Waxman and Ed Markey), was introduced to the House in mid-May 2009. The Bill was passed on 21 May 2009, by 33 votes to 25.

The Bill proposes to reduce American emissions by 3 per cent of 2005 levels by 2012, 17 per cent by 2020, 42 per cent by 2030, and 83 per cent by 2050. These reduction targets are consistent with stabilisation at 450ppm CO2-e, although the original proposed target of 20 per cent of 2005 levels by 2020 was negotiated down to 17 per cent.

The recent UN Climate Conference in Poland (COP14) did little to move international negotiations ahead, although there are hopes for a more decisive meeting in Copenhagen (COP15) in late 2009.

From http://en.wikipedia.org/