Design of a multilateral regime for emissions trading

I argue that Australia’s eco­nom­ic com­pet­i­tive­ness would best be safe­guard­ed by a regime that guar­an­teed the neu­tral­i­ty of glob­al emis­sions con­trols. This regime should be in the form of a con­tract among governments,preferably out­side the UN, that extends to con­trol of exist­ing and future region­al and nation­al emis­sions mar­kets. It should set caps on emis­sions rather than imple­ment a glob­al ‘tar­get’; it should pre­scribe min­i­mum rules for effi­cient mar­kets but it should leave sub­stan­tive con­trols in the hands of nation­al or region­al author­i­ties. Although com­pet­i­tive neu­tral­i­ty requires that the mar­gin­al price of emis­sions should be the same every­where, enti­tle­ments should be priced by local markets. 

In my view these char­ac­ter­is­tics could be pur­sued in a frame­work agree­ment that imple­ment­ed the McK­ib­bin-Wilcox­en pro­pos­als for emis­sions trading. 

A copy of my sub­mis­sion is avail­able here

Leave a Comment

Your email address will not be published. Required fields are marked *