Think tank welcomes link to Europe ETS

28 Aug 2012, 3:55 pm   -   Source: AAP

The Climate Insitute has cautiously welcomed the government's plan to link Australia's carbon laws with those of the European Union.

An environmental think tank has cautiously welcomed the government's move to link Australia's carbon laws to those of the European Union (EU).

"While our preference is for a longer-term price floor than in current legislation, linking with the world's biggest carbon market is welcomed so long as it is combined with strong policies for clean energy and energy efficiency," Erwin Jackson, deputy chief executive of the Climate Institute said in a statement on Tuesday.

Climate Change Minister Greg Combet said under the linking of the Australian and European systems the government's planned floor price of $15 a tonne will be scrapped.

Mr Jackson said the institute preferred a long-term minimum carbon price (price floor), which would provide investors with more predictability than the three years in the current legislation.

He said linking to the EU would ensure the price paid by Australian firms matched those paid by firms in the EU.

Australia's carbon price will effectively be linked with the EU from July 1, 2015.

Full linking of the markets will occur no later than July 1, 2018, Mr Combet said.

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