Saturday, August 19, 2006

NSW to introduce mandatory cap: Let the trading begin

The NSW Government will legislate mandatory emissions targets until 2020, updated every 15 years, reports The Australian Financial Review. The government has previously pledged to cut carbon dioxide emissions by 60 per cent by 2050. The NSW scheme sets annual targets for electricity retailers and generators to cut greenhouse gas emissions. They can offset emissions by investing in forestry and energy-efficiency measures, or by buying carbon credits (currently traded at between $12 and $15 a tonne).
Known as "GGAS", it was the first scheme of its kind in the world in January 2003, settinh targets in line with the Kyoto Protocol on climate change. It was due to expire in December 2012.
Several industry players, including Origin Energy, have previously criticised the lack of certainty on carbon offset agreements.
Other companies have been holding off on investing in carbon offsets until the extension of the scheme.

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