Environmental News

Why EU carbon price is wrong for us

Admin Keep Queensland Beautiful - Monday, July 22, 2013

As Prime Minister, Kevin Rudd has made his share of bad calls on climate change policy: he wasted the bipartisan consensus for an emissions trading scheme in 2009, then shied away from a double dissolution election. Now he seeks to make his government a smaller target on climate change by trying to seem like he is dismantling Labor's own legislation.

The price in the EU scheme is low, only about $6 a tonne. The European price could of course rise in future. Some forecasts predict sharply rising prices, on various assumptions. But futures markets, where companies invest their money according to their expectations, have 2020 EU permit futures at only about $8.

The EU price could even fall. It depends on Europe's growth outlook and changes to its carbon policy, both uncertain. In Australian dollar terms, the exchange rate matters also.

 

Read more: http://www.smh.com.au/federal-politics/political-opinion/why-europes-carbon-price-is-wrong-for-us-20130718-2q74q.html