Chasing down the climate change footprint of the public and private sectors: Forces converge - Part II

Environmental and Planning Law Journal

Volumn 24, Issue 6, 2007, Pages 450-479

  Lyster, Rosemary ^a  

^a UNIVERSITY OF SYDNEY   (Australia)

Author keywords

[No Author keywords available]

Indexed keywords

CLIMATE CHANGE; EMISSION CONTROL; EMISSIONS TRADING; GREENHOUSE GAS; KYOTO PROTOCOL; POLLUTION POLICY;

EID: 38049156607     PISSN: 0813300X     EISSN: None     Source Type: Journal    
DOI: None     Document Type: Article

References (237)

1. See Lyster R, "Chasing Down the Climate Change Footprint of the Public and Private Sectors: Forces Converge" (2007) 24 EPLJ 281.
2. Joint implementation means that developed countries can invest in projects in other developed countries to acquire credits (ERUs) to assist in meeting assigned amounts, if generated in the first commitment period 2008-2012. Participation in JI projects must be voluntary and is open to public and private entities. A JI project most be one that would not normally be undertaken by the receiving Party, and must, in this sense, be "additional" see Kyoto Protocol, Art 6(b.). The acquisition of emission reduction units, derived from a JI project, by a Party must be "supplemental" to domestic actions for the purposes of meeting its emission reduction target (Art 6(d)).
3. The Clean Development Mechanism (CDM) allows developed countries to invest in emission reducing prcjects in developing countries, and to obtain certified emission reductions (CERs) towards meeting assigned amounts; Kyoto Protocol, Art 12. This allows developed countries not only to meet their emission reduction targets outside of their own jurisdictions, but also to find a ready export market for their sustainable energy technologies. Emission reductions resulting from each project activity must be certified by operational entities on the basis of: Voluntary participation approved by each Party involved; real, measurable, and long-term benefits related to the mitigation of climate change; and reductions in emissions that are additional to any that would occur in the absence of the certified project activity; Kyoto Protocol, Art 12(5). Participation may involve public and private entitles; Kyoto Protocol, Art 12(9). Certified emission reductions obtained between 2000 and 2008 may be used to achieve compliance in the first commitment period; Kyoto Protocol, Art 12(10). CDMs are regulated by the Executive Board of the Clean Development Mechanism (CDM) which has released the Approved Baselines and Methodologias for various CDM projects: See http://cdm.unfccc.int/methodologies/ PAmethodologies/approved.html?searchon=1&searchmode=advanced (viewed 14 October 2007).
4. Kyoto Protool, Art 17. The Protocol is available online at http://unfccc.int/resource/docs/convkp/kpeng.pdf (viewed 13 October 2007).
5. Kyoto Protocol, Arts 3.7, 3.8 and Annex B.
6. Kyoto Protocol, Arts 3.7, 3.8 and Annex B.
7. Kyoto Protocol, Arts 3.7, 3.8 and Annex B.
8. See http://unfccc.int/kyoto_mechanisms/emissions_trading/items/ 2731txt.php (viewed 16 November 2004).
9. This calculation is likely to be relevant to Annex I Parties which prove, at the end of the commitment period, to be "net buyers" of units under the mechanisms.
10. This calculation is likely to be relevant to Annex I Parties which prove, at the end ot the commitment period, to be "net sellers" of units under the mechanisms.
11. See Point Carbon, 30 August 2007. available at http://www.pointcarbon.com/article.php?articleID=24237 (viewed 30 August 2007).
12. See http://unfccc.int/kyoto∥otocol/registry_systems/ill/items/ 4065.php (viewed 13 October 2007).
13. See National Emissions Trading Taskforce. Possible Design for a National Greenhouse Gas Emissions Trading Scheme (2006) p 11, available at http://thecabinetoffice.clients.squiz.net/_data/ assets/pdf_file/0011/2018/Discussion_Paper_-_Preliminaries.pdf (viewed 6 August 2007). This report was prepared on behalf of the State and Territory governments in Australia to assist them with designing an inter-jurisdictional emissions trading scheme in the absence of federal regulation in this regard. This initiative is discussed in more detail below.
14. See Mills D, "Reducing Greenhouse Gas Emissions Through Electricity Industry Reform: A Market-Oriented Emissions Reduction Scheme" (2000) 12 World Resources Review 58 at 72.
15. See also Yelin-Kefer J, "Warming up to an International Greenhouse Gas Market: Lessons from ther US Acid Rain Experience" (2001) 20 Stan Envtl L J 221.
16. See Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 (EU ETS Directive) available at http://eur-lex.europa.eu/LexUriServ/site/en/oj/2003/1_275/ 1_27520031025en00320046.pdf (viewed 6 August 2007);
17. see also Davies P, "Trading in Greenhouse Gas Emissions: The European Community's Endorsement of Emissions Trading" (2006) 4 International Energy Law & Taxation Review 105;
18. Editorial. "Commission Sets Out Agenda for Revising EU Emissions Trading Scheme" (2006) 199 Focus 2;
19. Harris P, "The European Union and Environment Change: Sharing the Burdens of Global Warming" (2006) 17 Colo J Int'l Envtl L & Pol'y 309;
20. Parker L, Climate Change: The European Union's Emissions Trading System (EU-ETS) (CRS Report for Congress: 2006).
21. Discussed below.
22. In December 2005, the seven Northeastern, and Mid-Atlantic States. including Connecticut, Delaware, Maine. New Hampshire. New Jersey. New York. and Vermont agreed to develop a regional strategy for controlling emissions which is essentially a multi-state cap-and-trade program. Maryland became a member on 30 June 2007. In addition, the District of Columbia, Massachusetts. Pennsylvania, Rhode Island. the Eastern Canadian Provinces, and New Brunswick are observers in the process. The proposed trading scheme will cover coal-fired, oil-fired and gas-fired electric power generators in participating States. On August 15 2006, the participating States issued a Model Rule for the ROGI program which details the proposed program and which will form the basis of individual state regulatory and/or statutory proposals to implement the program. On October 17 2006, Arnold Schwarzenegger. Governor of California, announced that he will be forming it trading partnership between California and RGGI to assist California to reach its legally mandated target of reducing carbon dioxide emissions by 25% by 2020 via a carbon trading scheme; see http://www.wri.org/climate/ project_content_text.cfm?cid=4163 (viewed 5 September 2007)
23. and see also Engel K, "Mitigating Global Climate Change in the United States: A Regional Approach".(2005) 14 NYU Envtl L J 54
24. See http://www.climatechange.govt.nz/files/ emissions-trading-scheme-complete.pdf (viewed 11 October 2007).
25. The states are Oregon, California, Washington, New Mexico and Arizona: see http://www.govenor.wa.gov/news/ 2007-02-26_WesternClimateAgreementRelease.pdf (viewed 11 October 2007).
26. Draft Climate Change Bill 2007 (UK) s 1(1) available at http://www.official-documents.gov.uk/document/cm70/7040/7040.pdf (viewed 26 October 2001).
27. Available at http://thomas.loc.gov/cgi-bin/query/z?c110:S.280 (viewed 30 April 2007).
28. 2-equivalent may not exceed 445-535 ppm in 2030. The EPA will analyse the price impact of the Bills by 15 November; see Point Carbon, 3 October 2007 available at http://www.pointcarbon.com/ Home/News/All%20news/Kyoto%20International/article24797-472.html (viewed 13 October 2007).
29. For a discussion of the Bush Administration's approach to climate change regulation, and its consequences see Abate R, "Kyoto or Not, Here We come: The Promise and Perils of the Piecemeal Approach to Climate Change Regulation in the United States" (2006) 15 Cornell J L & Pub Pol'y 369;
30. Diener S, "Ratification of the Kyoto Aside: How International Law and Market Uncertainty Obviate the Current U.S. Approach to Climate Change Emissions" (2006) 47 Wm & Mary L Rev 2089;
31. Carlane C "Climate Change Policies an Ocean Apart: EU & US Climate Change Policies Compared" (2006) 14 Penn St Envtl L Rev 435.
32. See http://www.chicagoclimatex.com (viewed 6 August 2007).
33. See http://www.iea.org/extbase/work/2006/2ghget/JVETS.pdf (viewed 6 August 2007).
34. See National Emissions Trading Taskforce Report, n 13.
35. Report of the Task Group on Emissiom Trading (Prime Minister and Cabinet, 22007) (The Task Group Report.); available at http://www.dpmc.gov.au/publications/emissions/docs/ emissions_trading_report.pdf (viewed 31 May 2007).
36. Available at http://www.dpmc.gov.au/publications/climate_policy/ docs/climate_policy_2007.rtf (viewed 30 August 2007).
37. The Constitutional basis for the National Greenhouse and Energy Reporting Act 2007 (Cth) is paras 51 (xi) (Census and Statistics). (xx) (Trading or Financial Corporations), (xxix) (External Affairs) and (xxxix) (Matters Incidental), as well as any implied powers arising under the Constitution.
38. Task Group Report, n 27. p 103.
39. Task Group Report. n 27, p 12.
40. Draft Climate Change Bill 2007 (UK), s 1(1).
41. See California's Global Warming Solutions Act of 2006.
42. Regional Greenhouse Gas Initiative Model Rule available at http://www.rggi.org./modelrule.htm (viewed 4 September 2007).
43. Regional Greenhouse Gas Initiative Model Rule, n 34 at XX-1.1.
44. See NZ ETS, The Framework for a New Zealand Emissions Trading Scheme: Executive Summary (2007) p 8, available at http://www.climatechange.govt.n2/files/ ets-executive-summary-complete.pdf (viewed 11 October 2007).
45. National Emissions Trading Taskforce Report, n 13. p 9.
46. It is interesting to note the submissions made by various industry sectors to the Task Group. Fr example the energy sector was largely supportive of the early introduction of an ETS primarily to provide regulatory certainty, provide a price signal for carbon, and also to prevent any possible stalling of investment in energy infrastructure. There was strong support in the finance sector for the establishment of an ETS which noted that uncertainty surrounding climate policy and possible carbon costs has heightened the risks associated with investments, which may reduce and delay investment which is required to maintain and grow infrastructure. The forestry sector believed that an ETS should be established even in the absence of a global scheme, noting that it was concerned to ensure that a scheme appropriately recognised the long term nature of forestry sequestration. The manufacturing and processing sectors, including the steel, cement and aluminium industries, and Australia's major resources companies were concerned about the potential negative impact on international competitiveness. Despite this resource companies believed that these risks can be managed and mitigated by appropriate government policies and an appropriate ETS format and structure. The submissions are available at http://www-pmc.gov.au/climate_change/emissions/task_group/submissions/ index.cfm (viewed 25 October 2007.).
47. Note that despite any action proposed by the Howard Government following the report of the Task Group, if the Australian Labot Party wins the 2007 federal election, it has indicated that it will ratify the Kyoto Protocol and establish a national emissions trading scheme.
48. The Garnaut Climate Change Review was commissioned by the Australian State and Territory governments on 30 April 2007;
49. http://www.dpc.vic.gov.au/CA256D8000265E1A/OrigDoc/ ~4BF15A7FB0C2CLEIICA25732A00107156?OpenDocument&1=10- Listingn&2=-None-&3=0-The+Garnaut+Climate+Change+Review+- +About~ (viewed 9 October 2007).
50. See the discussion in the National Emissions Trading National Emissions Trading Taskforce Report, n 13. p 37;
51. see also the Task Group Report, n 27, p 104-107.
52. National Emissions Trading Taskforce Report, n 13, pp 37-38.
53. If the cap period is too short, as are the periods 2005-2007 and 2008-2012 under the European Union Emissions Trading Scheme, investors might defer decisions to replace ageing plant to meet increasing consumer demand. A longer-term cap period, such as 30 yews, would increase investor certainty but might lessen the government's capacity to alter the cap when circumstance demands. Annual caps are also an important consideration as these indicate how quickly emissions need to be reduced and must take into account: The lifespan of existing generations plants; when new capacity is likely to enter the market; the relative costs of various abatement options; the availability and cost of allowable offsets: And changes to these costs over time; National Emissions Trading Taskforce Report, n 13, p 39.
54. National Emissions Trading Taskforce Rcport, n 13, pp 40-41.
55. National Emissions Trading Taskforce Report, n 13. pp 37-54.
56. Draft Climate Change Bill 2007 (UK) ss 1-6.
57. 2, can lead io increased emissions of methane (CH4) due to the mismanagement gas pipeline systems;
58. 2 Emissions Trading Directive and the Climate Stewardship Act" (2005) 5 Nat Resources J 865 at 906.
59. EU ETS Directive, n 16 Art 30.
60. Draft Climate Change Bill 2007 (UK) s 18.
61. NZ ETS Fxecutive Summary, n 36, p 7.
62. National Emissions Trading Taskforce Report, n 13, pp 15-36.
63. Task Group Report, n 27, p 110.
64. Choi, n 47 at 907
65. Choi, n 47 at 909
66. Choi, n 47 at 909.
67. Choi, n 47 at 909.
68. EU ETS Directive, n 16.
69. EU ETS Directive, n 16. Art 2.
70. EU ETS Directive. n 16, Annex 1.
71. EU ETS Directive, n 16, Annex 1.
72. EU ETS Directive, n 16. Annex 1.
73. EU FTS Directive, n 16, Annex 1.
74. See Point Carbon, 2 October 2007, available at http://www.pointcarbon.com/Home/News/All%20news/ article24789-703.html (viewed 13 October 2007).
75. Note that Point Carbon reports that the World Wide Fund for Nature (WWF) claims that the proposed cap comprises a 65% increase in the aviation sector's emissions compared with 1990 levels; see also Predict and Decide: Aviation, Climate Change and UK Policy (The Environmental Change Institute, Oxford University, October 2006) which recommends the adoption of a fiscal policy to make flying less attractively priced, available at http:wWw.eci.ox.ac.uk/research/ energy/predictanddecide.php (viewed 1 January 2007);
76. Hardeman A, "A Common Approach to Aviation Emissions Trading": (2006) (XXXII/1) Air & Space Law 3;
77. Macintosh A and Downie C, A Flight Risk? Aviation and Climate Change in Australia, (Discussion Paper Number 94, The Australia Institute, 2007) available at http://www.tai.org.au/documents/ downloads/DP94.pdf (viewed 14 October 2007).
78. Draft Climate Change Bill 2007 (UK) s 28, Sch 2, cll 3, 4.
79. Draft Climate Change Bill 2007 (UK) Consultation Document cl 4.12.
80. Climate Stewardship and Innovation Act 2007 (US.) s 5.
81. New Zealand's GHG profile is rather unusual in that nearly 49% of GHG emissions results from agriculture (not counting energy use in the agricultural sector) with significant emissions emanating from the deforestation of forests planted before 1990. Emissions from future harvesting of land afforested since that date will rise sharply from 2020-2030 while emissions from the energy sector are only 43% with 69% of New Zealand's energy mix attributable to renewable sources; see NZ ETS Executive Summary, n 36, p. 5.
82. Executive Summary, n 36, p 7.
83. Executive Summary, n 36. p 10.
84. National Emissions Trading Taskforce Report, n 13, pp 15-36.
85. Choi, n 47 at 917.
86. Choi, n 47 at 920.
87. The Task Group Report notes that the methodology chosen to allocate permits should satisfy three criteria: Avoid creating disincentives for early abatement; must not provide incentives or opportunities for undermining the scheme: And must minimize ongoing tractions costs for business and government and promote market efficiency; see Task Group Report, n 27, p 115.
88. EU ETS Directive, n 16, Art 9. For this reason, the allowance distributed during Phase I of the ETS (2005-2007) is known as an EUA-I, in Phase II EUA (2008- 2012) as an EUA-II, and in Phase III (2012-) as an EUA-III.
89. EU ETS Directive, n 16 Art 10.
90. EU ETS Directive, n 16, Art 11.
91. Draft Climate Change Bill 2007 (UK) Sch 2, cl 5.
92. Climate Stewardship and Innovation Act 2007 (US), s 162. The Climate Change Credit Corporation is to be established under s 201 of the Act as a nonprofit corporation without stock. Its function is to receive, manage, buy and sell tradeable allowances. The proceeds of sales must be used to reduce the costs of the scheme for consumers. Although the benefits should be distributed equally across all regions of the United States. preferential treatment may be given to consumers who can least afford any increased costs. The proceeds of sales can also be allocated to dislocated workers and communities affected by the scheme; see s 202.
93. Climate Stewardship and Innovation Act 2007 (US), ss 162(6), 351.
94. See below.
95. Climate Stewardship and Innovation Act 2007 (US), s 164.
96. Climate Stewardship and Innovation Act 2007 (US), s 165.
97. Regional Greenhouse Gas Initiative Model Rule, n 34. Rule Xx 1.5 (c)(2).
98. NZ ETS Executive Summary, n 36, p 11.
99. Task Group Report, n 2 7. p 117.
100. Task Group Report, n 27, p 118.
101. National Greenhouse and Energy Reporting Act 2007 (Cth), Pt 2, Div 1.
102. National Greenhouse and Enegy Reporting Act 2007 (Cth), Pt 2, Div 2.
103. See Choi, n 47 at 927;
104. and National Emissions Trading Taskforce Report, n 13, p 51.
105. Choi, n 47;
106. and National Emissions Trading Taskforce Report, n 13, p 51. The Task Force Report notes that the downside of borrowing is that emissions reductions are delayed and there is a risk of future non-compliance if a liable party is not able to repay the. borrowed allowances.
107. Draft Climate Change Bill 2007 (UK) Consultation Document c11 5.36-5.38.
108. Draft Climate Change Bill 2007 (UK) Consultation Document c11. 5.39-5.43.
109. Climate Stewardship and Innovation Act 2007 (US) s 142.
110. Climate Stewardship and Innovation Act 2007 (US) s 143.
111. Climate Stewardship and Innovation Act 2007 (US) s 143(c).
112. Climate Stewardship and Innovation Act 2007 (US) s 143(e).
113. National Emissions Trading Taskforce, Report, n 13, pp 51-54.
114. Task Group Report, n 27, p 112.
115. See eg recommendations for early credits under the Task Group Report. n 27, p 123 and the decision of 21 June 2007 on allowable early abatement activities by California's Air Resources Board under the Global Warming Solutions Act 2066; available at http://www.arb.ca.gov/ newsrel/nr062107.htm (viewed 5 September 2007).
116. Choi, n 47 at 924.
117. Task Group Report, n 27, p 123.
118. See http://www.greenhouse.gov.au/greenhousefriendly/abatement/ measurement.html (viewed 10 October 2007).
119. National Emissions Trading Taskforce Report. n 13. p 62.
120. See Directive 2004/101/EC of the European Parliament and of the Council of 27 October 2004 amending Directive 2003/87/EC establishing a scheme for greenhouse gas emission allowance trading within the Community, in respect of the Kyoto Protocol's project mechanisms (the EU ETS Linking Directive); available at http://eur-lex.europa.eu/ LexUriServ/site/en/oj/2004/1_338/1_33820041113en00180023.pdf (viewed 5 September 2007)
121. Draft Climare Change Bill 2007 (UK), Sch 2, cl 6(5).
122. Climate Stewardship and Innovation Art 2007 (US) s 144(a).
123. Climate Stewardship and Innovation Act 2007 (US) s 144(b).
124. Regional Greenhouse Gas Initiative Model Rule, n 34, Subpart XX-10.
125. NZ ETS Executive Summary, n 36, p 8.
126. National Emissions Trading Taskforce Report. n 13, pp 78-82.
127. On 29 March 2007 the Australian government launched a 5200 million Global Initiative on Forests and Climate to advance the global effort to tackle climate change and protect the world's forests: See http://www.greenhouse.gov.au/international/forests/index.html (viewed 10 October 2007).
128. Task Group Report, n 27, p 113.
129. Downie C. Carbon Offsets: Saviour or Cop-out (Research Paper No 48, The Australia Institute, 2007) available at http://www.tai.org.au/ documents/downloads/WP107.pd (viewed 2 September 2007).
130. Aforestation is the artificial establishment of forests by planting or seeding in an area of non-forest land.
131. Reforastation is the restocking, with native tree stock of existing forests and woodlands which have been depleted.
132. Under these rules, forestry offsets are limited to aforestation and are only permitted until 2012. All forestry projects must be guaranteed for a minimum of 5 years to a maximum of 60 years depending on the project and all credits generated from projects must be replaced with credits from other projects when they expire.
133. Forestry offset projects are excluded as allowable, offsets.
134. Forestry offset projects are excluded as allowable offsets.
135. Only includes JI/CDM registered renewable energy and energy efficiency projects. Project must be "additional" while forestry projects are excluded.
136. Downie n 113, pp 12-17.
137. Choi, n 47 at 940.
138. EU ETS Directive, n 16, Art 19.
139. EU ETS Directive, n 16, Art 14.
140. EU ETS Directive, n 16 Art 15.
141. Draft Climate Change Bill 2007 (UK) Sch 2, cl 20.
142. The Climate Registry, which will start accepting data on 1 January 2008, is a nonprofit organisation in North America being created to record and track the greenhouse gas emissions of businesses municipalities and other organisations in 31 of the United States (covering over 70% of the United States population), and 2 provinces of Canada.
143. In accordance with Regional Greenhouse Gas Initiative Model Rule, n 34. Subpts XX-5. XX-6, XX-7 and s XX-10.7, see XX - 1.5 (c)(4).
144. Regional Greenhouse Gas Initiative Model Rule, n 34, XX - 1.2 Definitions.
145. Climate Stewardship and Innovation Act 2007 (US), s 101.
146. National Emissions Trading Taskforce Report. n 13, p 55.
147. EU ETS Directive, n 16, Art 16.
148. Draft Climate Change Bill 2007 (UK) Sch 2. cl 23.
149. Climate Stewardship and Innovation Act 2007 (US), s 125.
150. NZ ETS Executive Summary. n 36, p 8.
151. NZ ETS Executive Summary, n 36, pp, 62-85.
152. Task Group Report, n 27, p 111.
153. The Stern Review Report Executive Summary at xix; available at http://www.hm-treasury.gov.uk/media/4/3/Executive Summary.pdf (visited 12 October 2007).
154. The Stern Review Report Executive Summary, n 137, p xx.
155. While it is accepted that such campaigns are crucial in achieving, reductions in emissions, in this article only the other three choices will be expanded upon.
156. Task Group Report, n 27, p 45.
157. Electricity Supply Amendment (Greenhouse Gas Emission Reduction) Act 2003 (NSW); Electricity Supply Amendment (Greenhouse Gas Emission Reduction) Act 2003 (NSW) s 97B.
158. For a comprehensive discussion of these schemes see Lyster R and Bradbrook A, Energv Law and the Environment (Cambridge. University Press. 2006);
159. and Lyster R, Lipman Z, Franklin N, Wiffen G, Pearson L, Environment and Planning Law in New South Wales (Federation Press, 2007) Ch 5.
160. For an expansive discussion of this initiative see Lyster R and Bradbrook A, Energy Law and the Environment (Cambridge University Ross, 2006).
161. See Renewable Energy (NSW) Bill 2007.
162. See Victorian Renewable Energy Act 2006 (Vic).
163. See http://www.pm.gov.au/media/Release/2007/Media Release.24577.cfm (viewed 4 October 2007)
164. Dutch Electricity Act 1998.
165. See Energy 21 available at http://www.videncenter.dk/ Groenne%20trae%20haefte/Groen_Engelsk/Kap_pdf (viewed' 26 October 2007).
166. Energy Policy Act 2002 (US). Note that some States in the United States have adopted a 25%, by 2025 RPS. A Federally mandated RPS of 15% failed to be included in the Energy Bill passed by Senate in June 2007. However it was included in the House Energy Bill which passed in August 2007. The House and Senate will begin the process of consolidating their Energy Bills shortly; see Point Carbon, 12 September 2007, available at http://www.poincarbon.com/Home/News/ All%20news/Kyoto%20International/article2444-472.html (viewed 13 October 2007).
167. The Renewables Obligation Order 2002 No 914 made under the Utilities Act 2000;for a detailed discussion of the scheme se also see Bradbrook A and Wawryk AS, "Goverment Initiatives Promoting Renewable Energy for Electricity Generation in Australia" (2002) 25(1) UNSWLJ 124 at 142-144.
168. See The Energy Policy for Europe available at http://ec.europa.eu/energy/energy∝licy/doc/ 2007_03_02_energy_ltafleten.pdf (viewed 9 June 2007).
169. Available at http:/Www.industry.gov.au/assets/documents/itrinternet/ FinalReport20December20022004013110039.pdf?CFID=242389&CFTOKEN= 11377123 (viewed 12 October 2007).
170. Under the scheme, Queensland electricity retailers and other liable parties are required to source at least 13% of their electricity from gas-fired generation. The scheme began on 1 January 2005 and is intended to operate for 15 years; see http://www.energy.qld.gov.au/ 13percentgas.cfm (viewed 12 October 2007).
171. The author reviewed all of the submissions made by the energy sector, the finance sector and the manufacturing and processing sector while her colleague at Mallesons Stephen Jaques, Susan Timbs, reviewed those of the resources, transport, and forestry sectors, as well as those of various industry organisations.
172. Access Economics Economic Impacts of a Renewable Energy Target on the Victorian Economy, Report for the Energy Users Association of Australia (2006), cited in the Task Group Report, n 27, p 47.
173. CRA International Analys of Greenhouse Gas Policies for the Australian Electricity Sector, Report for the National Generators' Forum, Melbourne (2006). cited in the Task Group Report, n 27, p 47.
174. See Wilkinson M, "It's Not Easy Being Green", Sydney Morning Herald (14 September 2007) p 6.
175. See Mehling M, "Bridging the Transatlantic Divide: Legal Aspects of a Link Between Regional Carbon Markets in Europe and the United States" (2007) VII (2) Sustainable Development Law & Policy 46;
176. Sterk W, Braun M, Haug C, Korytarova K, Scholten A, Ready to Link Up? Implication of Design Differences for Linking Domestic Emissions Trading Schemes (Joint Emissions Trading as a Socio-Ecological Transformation (JET-SET). 2006):
177. Kruger J, Oates W, Pizer W. Decentralization in the EU Emissions Trading Scheme and Lessons for Global Policy (Resources for the Future, 2007);
178. 2 market (Potsdam Institute for Climate Impact Research, 2007).
179. Discussed below.
180. Sterk et al, n 158, p 5;
181. Edenhofer et al, n 158, p 11.
182. Sterk et al, n 158, p 5;
183. Edenhofer et al, n 158, p 11.
184. Sterk et al, n 158, p 5;
185. Edenhofer et al, n 158, p 11.
186. Edenhofer et al, n 158, pp 12-14.
187. See, eg. Sagemuller I "Forest Sinks under the United Nations Framework Convention on Climate Change and the Kyoto Protocol: Opportunity or Risk for Biodiversity" (2006) 31 Colum J Envtl L 189;
188. Rousseaux S, "Carbon Sinks in the Kyoto Protocol's Clean Development Mechanism: An obstacle to the Implementation of the Convention an Biological Diversity" (2005) 11(1). Environmental Law Review 1.
189. Of course the first obstacle of non-ratification of the Kyoto Protocol would still have to be cleared.
190. Sterk et al, n 158, p 6.
191. Kruger et al, n 158, p 18.
192. Sterk et al, n 158, p 7.
193. Under a cap and trade scheme an aggregate cap on emissions is distributed in the form of allowance permits, whereas under a baseline-and-credit scheme liable entities earn emission reduction credits for emissions reductions below their own baselines.
194. Edenhofer et al, n 158, p 12.
195. Sterk et al, n 158, p 7;
196. Kruger et al, n 158. p 16.
197. Sterk et al, n 158, p 8;
198. Kruger et al, n 158, p 18;
199. Edenhofer et al, n 158. p 15.
200. Sterk et al, n 158, p 8;
201. Kruger et al, n 158, p 15;
202. Edonhofer et al, n 158, p 13.
203. For a full explanation of the Scheme see Evaluation of the Pilot Project of Domestic Emissions Trading Scheme (Ministry of the Environment, Japan. 20o4) available al http://www.env.go-ip/en/earth/ cc/040707.pdf (viewed 13 October 2007).
204. See Point Carbon, (11 September 2007). available at http://www.pointcarbon.com/Home/News/All%20news/Kyoto%20International/ Domestic%20policies/article244229-881html (viewed 13 October 2007).
205. See Point Carbon, (8 September 2007), available at http://www.pointcarbon.com/Home/News/All%20news/Kyoto%20International/ article24866-472.html (viewed 13 October 2007).
206. See http://www.chicagoclimatex.com/news/press/ release_20070319_AGL.pdf (viewed 14 October 2007.).
207. See Point Carbon, (19 September 2007), available at http://www.pointcarbon.com/Home/News/All%20news/ Corporate/article24570-474.hml (viewed 13 October 2007).
208. See Point Carbon, 2A September 2007, available at http://www.pointcarbon.com/Home/News/All%20news/CDM%20&%20JI/ article24662-470.html (viewed 13 October 2007).
209. World Bank. State and Trends of the Carbon Market 2006, available at http://carbonfinance.org/docs/StateoftheCarbonMarket2006.pdf (viewed 10 October 2007).
210. WorldBank. State and Trends of the Carbon Market 2007 available at http://carbonfinance.org/docs/Carbon_Trends_2007-FINAL-May_2.pdf (viewed 10 October 2007).
211. World Bank, n 180. p 3.
212. World Bank, n 180. p 11.
213. World Bank, n 180, p 12.
214. In order to avoid a collapse in the price of EUAs. as occurred in the first phase of the EU ETS, the EU Commission has cut the amount of allowance in Phase II of the scheme by approximately 9.5% below what the Member States proposed. Proceedings challenging their allocations have been brought against the Commission in the European Court of Justice by Lithuania, Czech Republic. Estonia. Hungary, Latvia. Poland and Slovakia. see Point Carbon (17 August 2007). available at http://www.pointcarbon.com/article.php?articleID=24027 (viewed 14 October 2007.
215. World Bank, n 180, p 11.
216. World Bank, n 180, p 4.
217. See Point Carbon, 11 October 2007, available at http://www.pointcarbon.com/Home/News/All%20news/CDM%20&%20JI/ article24945-470.html (viewed 13 October 2007).
218. World Bank, n 180, pp 32-34.
219. See Point Carbon. (21 September 2007). available at http://www.pointcarbon.com/Home/News/All%20news/CDM%20&%20JI/ Meth%20panel%20%20%20EB/article24625-876.html (viewed 13 October 2007).
220. World Bank. n 180, p 21.
221. European Climate Exchange; see http://www.europeanclimateechange.com/ content.asp?id=5&sid=403 (viewed 10 October 2007).
222. Pointo J. EU Commodity Markets and Trading Exotic Derivatives (presentation at the ISDA-EFET-FOA Workshop for the European Commission, Biussels 28-29 September 2006), available at http://www.isda.org/ c_and_a/ppt/8-JamesPointon-EH-Commodity-Markets-Trading-Exotic- Derivatives.pdf (viewed 10 October 2007).
223. Pointon, n 192, note that although carbon is being traded primarily "over-the-counter" this has not deterred the emergence of a number of carbon exchanges around the world. In Japan the Asia Carbon Exchange (ACX-Change) was launched in October 2007, see http://www.asiacarbon.com/asiaCarbonExchange.htm (viewed 13 October 2007). In Australia, the Australian Climate Exchange (ACX) began trading voluntary emissions reductions (VERs) on its electronic platform in July 2007 (see http://www.climateexchange.com.au (viewed 13 October 2007)) with FEX Climate set to follow shortly. FEX Climate Pty Ltd is the carbon and environmental arm of Financial and Energy Exchange Ltd a new platform for trading sustainability and cleantech stocks, financial, energy, carbon and environmental commodities and derivatives (see http://www.fexclimate.com/Public/AboutUs.aspx (viewed 13 October 2007)), New Zealand will begin trading carbon on its trading platform TradeMe while, on 5 October 2007, the Montreal Exchange, which is the country's primary derivatives trading platform, filed for regulatory approval of market rules governing the trading of carbon dioxide futures contracts (see http://www.m-x.ca/ f_comm_press_en/29-07_en.pdf (viewed 13 October 2007).
224. Although, it is possible to enter into an Emission Allowance Transaction in the form of a cash-settled swap, under which one party grants to the other party (in consideration for a premium payment) the right to receive a payment equal to the amount by which the specified quantity of emissions allowances or reductions exceeds or is less than a specified level or price. However, market-standard documentation has not been developed for these types of Emission Allowance Transaction.
225. The author read the submissions of ANZ Bank, National Australia Bank, Westpac Bank, the Australian Securities Exchange, Insurance Australia
226. Task Group Report. n 27, espocially Ch 7.
227. Australian Stock Exchange, ASX Welcomes Government Commitment to Emissions Trading Scheme, (Media Release, 4 June 2007).
228. World Bank, n 180, p 5.
229. See http://carbonfinance.org/Router.cfm?Page=About&ItemID=24668 (viewed 13 October 2007)
230. See Point Carbon, (10 September 2007). available at http://www.pointcarbon.com/Home/News/All%20news/CDM%20&%20JI/ article24413-470.html (viewed 13 October 2007).
231. See http://www.ebrd.com/country/sector/energyef/carbon/mccf/index.htm (viewed 13 October 2007);
232. see also Point Carbon, (20 September 2007), available at http://www.pointcarbon.com/Home/News/All%20news/CDM%20&%20JI/ article24584-470.html (viewed 13 October 2007).
233. See Point Carbon, 13 September 2007, available at http://www.pointcarbon.com/Home/News/All%20news/CDM%20&%20JI/ article24475-470.html (viewed 11 October 2007).
234. See http://www.cib.org/about/press/2007/ 2007-092-eib-launches-new-post-2012-carbon-fund,-the-first-carbon-fund- targeting.htm (viewed 13 October 2007):
235. see also Point Carbon, (28 September 2007), available at http://www.pointcarbon.com/Home/News/All%20news/CDM%20&%20.JI/ article24738-470.html (viewed 13 October 2007).
236. Available at http://www.hm-treasurv.gov.uk/independent_reviews/ stern_review_economics_climate_change/stern_review_report.cfm (viewed 23 April 2007).
237. Available at http://www.ipcc.ch/SPM2feb07.pdf (viewed 26 October 2007).