Carbon trade hurts industry
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Tuesday, 4 April, 2000 - 22:00
CARBON trading could damage WA industrial expansion plans, investors have been warned.
Mallesons Stephen Jaques Perth office solicitor Brad Wylynko said, business and government was forging ahead on carbon trading.
Australia has agreed to increase its greenhouse gas emissions to just 108 per cent of 1990 levels.
Under the 1997 Kyoto treat, companies looking to set up greenhouse gas emitting industries in developed nations will have to buy greenhouse gas credits.
Companies can also gain carbon, or greenhouse gas, credits through reducing their emissions or planting trees to absorb carbon from the atmosphere. They can then opt to trade these credits.
However, undeveloped nations such as India and Indonesia are under no obligation to reduce their greenhouse gas emissions.
Therefore, businesses either involved in or looking to expand their greenhouse gas emitting industries could easily opt to go to those countries.
Mr Wylynko told the National Environmental Law Association/ EcoCarbon Greenhouse Gas Emissions forum that if the Federal Government kept to its emission promise, industrial expansion plans, particularly in WA, would require re-examination.
“A cap on emissions will create buyers for emission rights,” he said.
The company planning to expand may instead choose to curb its
emissions and follow the carbon credits trading route.
Mallesons Stephen Jaques Perth office solicitor Brad Wylynko said, business and government was forging ahead on carbon trading.
Australia has agreed to increase its greenhouse gas emissions to just 108 per cent of 1990 levels.
Under the 1997 Kyoto treat, companies looking to set up greenhouse gas emitting industries in developed nations will have to buy greenhouse gas credits.
Companies can also gain carbon, or greenhouse gas, credits through reducing their emissions or planting trees to absorb carbon from the atmosphere. They can then opt to trade these credits.
However, undeveloped nations such as India and Indonesia are under no obligation to reduce their greenhouse gas emissions.
Therefore, businesses either involved in or looking to expand their greenhouse gas emitting industries could easily opt to go to those countries.
Mr Wylynko told the National Environmental Law Association/ EcoCarbon Greenhouse Gas Emissions forum that if the Federal Government kept to its emission promise, industrial expansion plans, particularly in WA, would require re-examination.
“A cap on emissions will create buyers for emission rights,” he said.
The company planning to expand may instead choose to curb its
emissions and follow the carbon credits trading route.