Author: Christopher Findlay and David Parsons

ASEAN members have a strong interest in the outcome of Australia’s great carbon debate.

Australian participants in the policy debate have been concerned with the uncertainties about the costs of meeting commitments under an ETS.

These costs would be lower if the field of options were greater.

A rule which says that carbon-reducing or offsetting projects can only be based in Australia (which might suit some of vested interests now putting their hands up) limits the options.

A rule which says offshore projects can be counted greatly expands the options.

This view was accepted in the recent Green Paper which in its Chapter 6 on International Linkages said

A ‘least cost’ approach would draw on real abatement opportunities wherever they arose throughout the world.

The Green Paper goes on to recommend the acceptance of emissions reductions that result from projects in developing countries (preferred position 6.8, p. 238).

ASEAN members can jump onto this opportunity, but they have to grapple with the Australian debate.

The devil is in the detail of implementation. More on that shortly. Read more…