Emissions trading in the rest of the world
FACT SHEET 11
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- Emissions trading in the rest of the world
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Environmental market-based mechanisms are not new. Emissions trading schemes for greenhouse gases and other pollutants are already operating or being developed in other parts of the world.
Is Australia acting alone in introducing an emissions trading scheme?
Other countries have acted to reduce their emissions or are in the process of developing responses. Schemes are already operating in 27 European countries. Twenty-eight states and provinces in the US and Canada are introducing emissions trading to reduce carbon pollution, as is New Zealand. Japan is considering introducing a scheme. In the US, both presidential candidates are committed to introducing schemes to reduce carbon pollution. These schemes are a critical part of the global leadership required on climate change from the developed world. Leadership from the developed world encourages other countries to join the global effort to reduce carbon pollution.Emissions trading schemes in other countries and regions
European Emissions Trading Scheme
Commenced in 2005. Caps CO2 emissions from energy and industrial sectors. Scheme covers 27 European countries, and is linked to non-European Union countries such as Norway, Iceland, Liechtenstein and Switzerland.New Zealand Emissions Trading Scheme
Commenced in 2008 but legislation is still to pass through parliament. Initially covers forestry, expanding to full coverage of all sectors and gases by 2013.Norwegian Emissions Trading Scheme
Commenced in 2005 covering CO2 emissions from energy, oil, coking coal and industrial production. In October 2007, Norway, Iceland and Liechtenstein (countries in the European Economic Area ) linked with the European Emissions Trading Scheme.Japanese Voluntary Emissions Trading Scheme
Voluntary scheme established in 2005 to trial emissions trading, initially between 31 businesses. The Japanese Government has recently indicated it is considering developing a broader emissions trading scheme.Canadian Emissions Trading Scheme
Due to be introduced in 2010, covering around half of Canada's emissions from electricity, oil, gas, iron, steel, cement, chemicals and fertiliser. All sectors would be required to reduce their emissions intensity from 2006 levels by 18 per cent by 2010, with two per cent continuous improvement every year after that.Regional Greenhouse Gas Initiative (US)
Due to commence January 2009. Cooperative effort by nine Northeast and Mid-Atlantic states to constrain CO2 emissions to current levels in 2009, and then reduce 10 per cent by 2019. Initially covers emissions from power plants.Western Climate Initiative (US)
Currently under development. Arizona, California, New Mexico, Oregon and Washington, Utah, Montana and the Canadian provinces of British Columbia and Manitoba have agreed to develop an initiative to reduce aggregate emissions to 15 per cent below 2005 levels by 2020.
The Midwestern Greenhouse Gas Accord
The Accord was agreed in November 2007 although no specific targets or design elements have been released. Accord includes six US states and one Canadian province. Parties intend to have targets for reducing emissions from all six (Kyoto) gases in place by November 2008, and to finalise the design of the scheme within one year.
July 2008
