Aussies and Kiwis Consider Linking Carbon Markets

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New Zealand will host a conference of climate specialists this week where talks will be held if Aussies and Kiwis can have their emissions schemes linked with each other to have a wider range of abatement options. Critics like KPMG climate change analyst Antony Cohen believe this can shoot carbon permits prices to $40 per tonne in Australia and can also increase electricity rates by 30%.

Aussies currently plan a scheme which will restrict import of carbon permits and will totally disallow their export, whereas New Zealand does not have any such restrictions in their scheme.

The 4th Australian-New Zealand Climate Change and Business Conference (PDF) will be held in Auckland from August 18-20 and Rudd will meet Kiwi PM Helen Clark to consider the carbon trading schemes.

“They’re going to be focusing on climate change policy, looking first at the two domestic emissions trading schemes and looking for similarities and differences,” stated Gary Taylor, the event organizer. “I expect they’ll be exploring the potential for linking the two schemes.”

He further expressed that the two schemes may be linked starting from 2012.