The Australian Emissions Trading Scheme known as ETS or NETS is initiative legislation by the Federal government to protect our environment. The Rudd Government implement the ETS aims to adjust for the challenges of global climate change and it involves with a range of effective policy. The policy aims at reduce the country’s carbon consumption level as well as achieve the greenhouse gas abatement. The ETS is made to be effective in 2010; a comprehensive design of the scheme for each state is made to finalize in the beginning of 2009 after the Rudd government release the proposal framework this July 2008. (The Sydney Morning Herald, 2008,2)
The concept of Emissions trading is the government selling greenhouse emission permits to companies and the permit is allowed to be sold again for emissions or credits of certain pollutant. It is basically means industries across the nation would have to pay to pollute but organizations could be financially benefited from reducing their emission level below the government legislative standard by auctioning their remaining permit. (2007, Internet) The emissions permits is made to be allocated through a combination of means includes free allocation to electricity generators or free allocation to trade-exposed energy intensive industries to compensate for rising electricity prices and sell the remainder of their permit. As a result, this scheme is made to become a free market
Bibliography: Department of Climate Change (2008) ‘Carbon Pollution Reduction Schem’ http://www.climatechange.gov.au/emissionstrading/index.html (Accessed: 18.10.2008) Department of the Environment, Water, Heritage and the Arts (2007) ‘Grants to Voluntary Environment and Heritage organisations (GVEHO)’. http://www.environment.gov.au/education/programs/index.html (Accessed: 19.10.2008) Evens & Peck (2007) ‘Possible Design for a Greenhouse Gas Emissions Trading System’. http://www.emissionstrading.net.au/key_documents (Accessed: 18.10.2008) The Sydney Morning Herald (2008) ‘Climate Compo to Cushion Blow’ 5 July, 2 Samantha S. & Kristin M. (2007) ‘Current Snapshot of Australian Emissions Trading Proposals’ International Energy Law and Taxation Review: London May 2007, 79 Chichilnisky, G. & Heal, G. (2000) ‘Environmental Markets: Equity and Efficiency’. Columbia University Press, New York.